What
does a financial planner do?
A financial
planner is a personal coach for your money. Their aim
is to help you protect your money and make it grow,
so you can have more of the things you want - today
and in the future.
The first thing your financial planner will do is ask
about your current circumstances and your goals. They
will then help you make informed decisions about how
to invest and protect your money, as well as recommending
financial products to meet your needs.
The financial planner will look at the 7 key building
blocks (or 'strategies') of growing wealth, including:
• Budgeting
• Investing
• Managing debt
• Managing tax
• Super
• Protection
• Social security
They
will then create a personal financial plan that includes
a mix and match of these strategies to suit your individual
circumstances and financial goals.
A financial
planner does not just work with numbers but also with
people. They work with the intention that they should
have clients for many years.
They start by learning about a clients’ hopes and goals
and create strategies to help them achieve those goals
by:
• Providing a holistic approach to financial planning
• Having an extensive knowledge of financial markets
• Understanding trends and identifying potential risks
• Taking a global outlook
What
is the process?
Professional
financial planners use a six-step process to help a
client work out where they are now, what they may need
in the future and what they must do to reach their goals.
1. Gathering a client’s financial data, including details
on income, debt levels, financial commitment and so
forth.
2. Identifying the client’s goals. These may include
buying a house, funding education, travel, etc.
3. Identifying any financial issues
4. Preparing a financial plan that identifies recommended
investments and pays heed to the client’s attitude to
risk
5. Implementing the financial plan
6. Reviewing and revising the plan to ensure it stays
up-to-date and relevant to the economic climate and
the client’s changing lifestyle.
Specific
services a financial planner provides
A financial
planner can offer overall wealth-creating and wealth-protecting
advice and assistance across all financial markets,
or specialise in areas such as:
• Retirement planning
• Superannuation
• Estate planning
• Small business financial management and planning
• Trusts
• Taxation
• Investing on the share market
• Debt and risk management
• Core, life and general insurance
• Managed investments, securities and future markets
Financial advice isn't just about choosing investments.
It involves looking at all the financial options to
achieve a client’s short, medium and long term goals.
What
services do financial advisers provide?
Most
advisers tailor their services to the individual financial
circumstances, but generally these include:
• Retirement planning
• Investment planning
• Tax-effective investing
• Superannuation
• Planning for business owners • Insurance
• Estate planning
• Centrelink benefits
• Cash management and budgeting
People
often go to financial advisers because they don't have
the time, knowledge or self-motivation to do it all
themselves. And keeping up with constant changes to
tax and superannuation regulations, as well as interpreting
market movements can be a bit of a minefield. It's something
financial advisers do every day.
How
much does a financial adviser cost?
This
generally depends on how complex your plan needs to
be and how much money you have to invest. These charges
are usually made through upfront commissions or a fee
for service. Whatever the charges, the financial adviser
will explain them clearly when they take you through
the Financial Services Guide (FSG).
Call a home loan specialist on (02) 9630 9866 to take
advantage of minimising interest repayments when you
are building.
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