The Three Top Things A Professional Financial Planner Can Do For You

Do You Know What A Financial Planner Does?

Most people don't know what a financial planner actually does.

HERE ARE THE TOP THREE THINGS A PROFESSIONAL FINANCIAL PLANNER CAN DO FOR YOU:

1. Help you determine your particular financial goals

One of the hardest things for someone who has never prepared a financial plan is to know what they want.

For example:

• When do you want to retire?
• Do you want to retire or do you just want to ensure you are financially independent, and possibly work part-time?
• How much money will you need to meet your retirement expenditure requirements?
• Are you considering children in the future?
• Will you continue to work after the child is born, or do you want to take 12 months off to raise a child? If so, how will you meet your living expenses if you are not working?

Every successful financial plan must start with a realistic financial goal.

An experienced and professional financial planner will take the clients through a process that is designed to uncover a client's financial goals (that are realistic and particular to their individual requirements).

2. Determine what financial resources will help you achieve your goals

A significant number of people seeking financial advice do not actually know what financial resources they have that will enable them to achieve their financial goals.

Financial resources include superannuation, life insurances and your taxation position.

A professional financial plannerwill initially spend a significant amount of time auditing the client's financial position and financial resources.

auditing means obtaining the actual documents and statements for the financial resources (e.g. Superannuation statements) to confirm exactly what the client has, as opposed to relying on what the clients think they have.

3. Develop strategies based on your financial resources to help you achieve your financial goals

Most people want to invest, but they don't understand exactly what they are investing for.

How often have I heard from a client :I want to buy an investment property"? My first question to them is 'what is the purpose of your investment property? Most don't know the answer.

In terms of financial planning an investment property can provide capital growth and or income.

The capital growth of investment property will only help you achieve your financial goals if you sell the property at some point in the future and then you have to account for possible capital gains tax which will reduce the return.

If you need part of your capital in the future, it may be difficult and or expensive to access it - let's say you need ten thousand dollars to update your car, you can't sell one-bedroom of your investment property to pay for it.

If you are buying an investment property for providing income in retirement, the average residential rental property income will not likely meet your retirement expenditure requirements, so you have to have a lot of property (debt free) to be able to generate sufficient income to meet your retirement expenditure requirements.

Once a professional financial planner understands what the client wants, and what the client has that will enable them to achieve what they want, the financial planner will be able to assess strategies that will most likely suit the client's needs.

For example: there is no use for a client to consider an investment property strategy to assist them achieve their financial goals, if the client does not have the financial ability to purchase an investment property.

IF YOU DON'T HAVE A FINANCIAL PLAN OR WISH TO REVIEW YOUR CURRENT ONE, CONTACT US AND ARRANGE YOUR FREE FINANCIAL ASSESSMENT - BECAUSE EVERYONE NEEDS A PLAN!