Ask the right questions, hold your financial planners accountable, and ensure you maximise the upside of working with them, and more importantly, them working for you
When working with a financial planner, there are several key ways individuals can maximise results and take responsibility for your financial future.
Firstly, we need to ensure that you have done your due diligence, investigated your planner and understood your goals and aspirations in terms of finances.
Then comes the important part, honesty. Yep, just like when the doctor asks how many standard drinks you have per week and you say, “oh only a couple of a Saturday night”.
To maximise the upside of working with your financial planner, you need to ensure you are honest, transparent and provide them access to anything they may need.
From access to bank statements, credit card statements, and home loan documents, these professionals are experts in confidentiality, but they are also experts in working out the best personal plans for their clients’ finances when they have all the information.
How to maximise your financial planner and the financial planning process
Now that we have that section out of the way, we have taken the next section straight from the FPA website, on how to maximise getting the most out of your financial planner and the financial planning process.
1. DEFINING THE SCOPE OF ENGAGEMENT
Your financial planner should explain the process they will follow, find out your needs and make sure they can meet them. You can ask them about their background, how they work and how they charge.
2. IDENTIFYING YOUR GOALS
You work with your financial planner to identify your short- and long-term financial goals – this stage serves as a foundation for developing your plan.
3. ASSESSING YOUR FINANCIAL SITUATION
Your financial planner will take a good look at your position – your assets, liabilities, insurance coverage and investment or tax strategies.
4. PREPARING YOUR FINANCIAL PLAN
Your financial planner recommends suitable strategies, products, and services, and answers any questions you have.
5. IMPLEMENTING THE RECOMMENDATIONS
Once you’re ready to go ahead, your financial plan will be put into action. Where appropriate, your financial planner may work with specialist professionals, such as an accountant or solicitor.
6. REVIEWING THE PLAN
Your circumstances, lifestyle and financial goals are likely to change over time, so it’s important that your financial plan is regularly reviewed, to make sure you keep on track.[1]
As you can see, it is all about being prepared, being clear on your goals, not simply your wants or desires. It is about being realistic, having a plan, engaging the services of a trusted financial planner and conducting regular reviews of that plan.
When it comes financial planning, if you go off-course, that is fine, your financial planner is there to work with you and take things to the next level.
[1] https://fpa.com.au/about-financial-planning/how-it-works/