Financial Planning Overview

Financial planning is the process of structuring, arranging and managing your financial affairs to best meet your life goals. These can be as short term as saving for a car, to long term planning for retirement. Most importantly, financial planning also looks at how it all fits together so that you achieve financial certainty and clarity on your current and future financial wellbeing.

 

Financial planning is not one size fits all

 

Financial planning works for everyone because it is not a one size fits all solution. A sound plan will be tailored to your unique and specific needs. It is not a one-time activity, but rather an on-going process that adapts to your changing needs, circumstances and goals. From buying a house, to ensuring your loved ones are taken care of should something happen to you, to paying for a child’s education – a financial plan will help you achieve whatever you want out of life.

 

Make financial planning work for you

 

Financial planning is not one size fits all. To make sure you get the most out of financial planning, keep these things in mind:

 

1.  Understand the big picture – Each decision you make may affect other areas of your life.

2. Planning is about balance – Financial planning is not about denying yourself today for some distant tomorrow. Planning for tomorrow allows you to live for today.

3. Set measurable goals – Set specific targets that will help you achieve what you want, when you want it.

4.  Be realistic – Even with a financial plan, you are unlikely to see all of your financial problems solved overnight.

5. Re-evaluate periodically – Financial planning is a dynamic process. Your financial plan will need to be reviewed and updated regularly to take life changes into consideration, and ensure you remain on track.

6.  Be informed – Know what to ask from your financial planner and what to expect from the engagement.

 

The Financial Planning Process

 

1. Establishing and defining a professional relationship

The initial contact is dedicated to establishing a clear understanding of your immediate needs and/or concerns as well as getting a firm grasp of what services the financial planner provides.

 

2. Gathering data, including goals

Having clear goals and providing accurate financial information is pivotal in ensuring a meaningful financial plan. You and the planner should mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk.

 

3. Analysing and evaluating your financial status

With clear goals set and financial information at hand, the financial planner is able to “draw a line in the sand” and establish where you are in relation to your goals. Depending on what services you have asked for, this could include analysing your assets, liabilities and cash flow, current insurance coverage, investments or tax strategies.

 

4. Developing and presenting financial planning recommendations and/or alternatives

Once your financial information has been analysed, the financial planner will guide you through the various financial decisions available and make recommendations accordingly. The outcome of the plan is to ensure that you have a plan to take you forward with confidence and provide certainty regarding your financial future.

 

5. Implementing the financial planning recommendations

You and the planner should agree on how the recommendations will be carried out. The planner may carry out the recommendations or serve as your “coach,” co-ordinating the whole process with you and other professionals such as attorneys or stockbrokers.

 

6. Monitoring the financial planning recommendations

You and the planner should agree on who will monitor your progress towards your goals. It is important that your plan and any financial solutions that were implemented are reviewed on at least an annual basis. This is done to ensure that your plan remains relevant and meaningful in light of any changes in personal or financial circumstances.

 

Importance of Financial Advisor

 

• Provide guidance and advice about your current situation;

• Identifying risks that should be managed;

• Identify more efficient ways of managing your debt;

• Providing advice about the most appropriate investment for you to save or invest

 

Questions To Ask Your Financial Advisor

 

• What is your area of Expertise?

• Are you regulated by the FSB?

• Are you sufficiently qualified?

• How long have you been advising clients?

• Why is this product the best for me?

 

At the end of your meeting

 

• Do not feel pressurized to sign up for anything if you are not ready to;

• Take as much time as you need to consider;

• Arrange a follow up meeting.

 

Net Wealth Analytics Financial Advisors are:

 

• Accredited Financial Advisors with solid knowledge;

• Will assist you with your financial goals;

 

 

 

 

 

 

​