A financial planner can provide you with meaningful advice, realistic advice about what your financial future could look like, and importantly how to get there.
When thinking about your future, there are many things that no matter who you are, we all consider at one point in time.
How much money do I need to live the life I want? What age will I retire? Why is it that people around me are able to afford new cars, new homes and investment properties and I can’t?
Regardless of if you are 30-years old, or 60-years old a financial planner can provide meaningful and realistic advice about what your financial future could look like, and importantly how to get there.
Obviously before you move to getting financial advice, it is vital that you ask yourself (and your partner if applicable) some key questions. What am I looking to achieve? How much do I have now? How much can I realistically earn over the foreseeable future? How much of that can I invest? And importantly, what am I trying to achieve?
There is no point booking an appointment with a financial planner should you be walking in with unrealistic expectations. Such as I earn $45,000 and I want to buy a Ferrari and a holiday home on the Gold Coast in 5-years’ time. Unless you win the lottery or have some inheritance coming your way, we are sorry to say this is not going to happen.
You need to look at yourself objectively, be honest and work out the reason why you, in your current financial situation, want to see a financial planner.
Why do people use financial planners?
There are two key reasons people seek financial advice, these are general financial advice and personal financial advice.
General Financial Advice, as the name suggests, is advice that doesn’t take into account you and your individual situation. This may be advice about a particular investment vehicle, such as shares, cryptocurrency, an investment fund etc. The advice doesn’t take into consideration how you may be liable or affected by the product or service personally.
Personal Financial Advice is a more comprehensive, tailored review and advice for you, of you now, where you wish to be in the future and the mechanisms available to you, in your current financial situation to get there. A qualified and certified financial planner will ask a series of detailed questions about you, together you set goals, review products and services applicable to your personal situation, and then advise you and manage your progress moving forward. Services may include, but are not limited to:
- Simple, single-issue advice— Help with one financial issue, for example, how much to contribute to your super, or what to do if you inherit shares.
- Comprehensive financial advice— Help to develop a financial plan to reach your financial goals. This covers things like savings, investments, insurance, and super and retirement planning.
- Ongoing advice— Regular monitoring and review of your financial plan and affairs.[1]
With the rise of the ‘gig economy’, changes in working conditions, Self-Managed Superannuation Funds (SMSF) and general market access to riskier investment options (such as cryptocurrency, CFDs and other leveraged, often speculative instruments) a financial planner is often not only a good idea, but a mandatory one.
Why is a financial advisor so important?
Gone are the days where you start a job from the bottom of the company, work your way up for the next 20, 30 or 40+ years, collect your gold watch and retire to watch the sunset at your beach house as your grandchildren listen to you talk about ‘the good old days’.
The seismic generational changes in technology, historic housing price spikes, employment, how we work and who we work for – not to mention access to debt and credit facilities or the global economy, have all led to people wanting a work life balance. Working for themselves, working from home, working from anywhere – all sounds fantastic, until you realise that you are 50+ with no superannuation, a mortgage that you can’t foreseeably pay off and no ‘extra’ or ‘passive income’ from investments outside your work.
A financial planner can work with you, from a VERY small base, to set up your future. Including but not limited to savings, investments in funds, shares, alternative investments, currencies and much more, to provide income streams and security for you – despite your annual income.
When is the best time to see a financial planner?
Many people feel that financial planners are either “only for rich people '' or alternatively is like going to the dentist, and often ‘kick the can down the road’ as they may be embarrassed at their level of personal debt, number of credit cards or lack of financial prowess. WRONG!
The best time to see a financial planner is right now. Why, because today is literally the first day of your new financial life from the day you meet with a financial planner – no matter your financial situation.
Financial planners are there to work with you, and really only benefit when you as their clients do, not only now, but into the future. For example, if you are in your mid 30’s, with a few credit cards, merger savings and can’t see how you could ever get a mortgage like your friends – a financial planner can get you there.
If you are in your 50’s and are realising you have 15-20 more working years and want to set yourself up for retirement – a financial planner can help.
You are the recent recipient of some inheritance and you down want to see it go to waste – a financial planner can help.
Financial planners are experts in just that, planning how to realise the best outcomes financially for their clients over the short, medium, and long term.
And sure, there may be some home truths, some budget cuts, your ego may even take a bruise, but when the dust settles you will have a plan, with defined goals, and you will literally see the results starting to happen from week 1.
From there, your financial future will be more secure, it’s important to note, you need to take the first steps – but you also need to be responsible and take responsibility of your money, as the financial planner can show you how and work by your side, but only you can make your financial freedom a reality.
[1] https://moneysmart.gov.au/financial-advice/choosing-a-financial-adviser
