Planners spend the majority of their time advising clients on the following: investment planning, retirement planning, tax planning, estate planning, and risk management
There are many misconceptions on what the role of a financial planner does, by now we hope that you have a more robust understanding of their important role as part of your financial future.
In terms of what they do from a top-level as well, we have discussed in terms of their setting a roadmap for you, presenting a range of financial investment and superannuation options, and working with you to develop a plan to get out of debt and into a solid financial position.
However, when it comes to the day-to-day, what does a financial planner do? How does this benefit you as a client and why does it indeed matter to you at all?
Although a financial advisor may only sit down with you as a client for an hour, maybe two or three, by no means is this the end of their time spent on working on your account.
In order to do that proficient meaningful advice, they will need to meet and discuss your current situation or portfolio with your lawyers, your accountants, investment bankers (if you have one), fund managers and other financial service providers you may have working with or for you.
Even if you are only just starting your journey into getting financial planning advice and services, your financial planner will be researching your spending habits, financial acumen, ability to save, repay debt, debt levels and potential earning capacities.
All of the above is purely just researching into you, and then they will sit down and map out a plan, a schedule of advice and a range of products across a broad spectrum of financial instruments best suited to meet your financial objectives.
According to the Institute of Certified Financial Planners, planners spend the majority of their time advising clients on the following: investment planning, retirement planning, tax planning, estate planning, and risk management[1].
While a financial planner may undertake this for an extensive list of clientele, they also are required to complete ongoing CPD courses, attend seminars and conferences on financial planning, review and research fund, share and portfolio performance, all the while ensuring that their ‘funds under management’ are all performing.
Financial planning advice cannot be provided to you without the proper research and understanding of market variables that could impact your financial performance – and ultimately the time when you will retire, buy an investment property or go on a family holiday.
As such, your financial planner not only needs to understand the market, the products and services available and ensure they are compliant in every way, but they need to understand you.
As you can see, where many people may feel that financial planners are charging high fees for ongoing management of your affairs, they are highly skilled individuals that need a broad understanding of all financial matters, markets and legislation to ensure they provide you with the very best service.
[1] https://www.princetonreview.com/careers/176/financial-planner