Financial Planner
A financial planner is a professional who analyses a person's financial affairs and designs a financial planning program to meet the needs and objectives of that person. As explained in the importance of financial planning, financial planners typically analyse a person's financial situation, goals, needs and risk attitudes. They then match these with financial strategies and solutions for which they give advice. Once all these areas have been researched, they draw up a financial plan or program that includes recommendations on how to improve an individual's financial situation for the purpose of creating wealth, protecting lives and assets, preparing for retirement income and the passing on of financial interests to beneficiaries. In other words, they deal in one or more of the following areas:
These areas almost always include aspects of cash flow management, personal budgeting and tax minimization. Financial planning consultants tend to specialize. Some may specialize in investments while others only do insurances. Others may offer comprehensive financial planning across all areas to provide a one-stop-shop. It is important to find out how financial planners position themselves. A question that I get asked regularly when meeting with new clients is: What's the difference between my tax accountant and you as a financial planner? I normally answer the part of the accountant first along the following lines. A tax accountant prepares your tax return based on your financial figures for the year that has ended. He makes sure that all details are declared correctly and maximum entitlements are claimed so that you have to pay as little tax as necessary. - Best case, you'll get a tax refund. A financial planner is looking at your entire financial situation, not only the tax portion of it. He considers your lifestyle needs and future goals. Based on that, he gives you advice on how to make financial improvements including tax related matters. For example, financial planners would be able to advise you on several investment options that could do away with a large capital gain for your current financial year. By the time the accountant gets your information the tax year has passed and nothing can be changed anymore. If you'd contact your accountant before the year ends he'd probably ask if you have any losses that you could offset your gain with. They generally wouldn't know about strategies and solutions that have the same effect as this is not their area of expertise. The benefits of using a financial plannerA financial planner is like a personal coach. They work in finance every day and can give you important information that may be relevant to your circumstances. You can then follow their guidance or make your own but informed decisions to continuously improve your financial health. Here's a list of reasons that clients stated why they have been seeking the assistance of a financial planning coach:
All financial planners in Australia must be licensed. They must be registered with ASIC, the Australian Securities and Investments Commission. The industry is highly regulated and financial advisors have to meet ongoing training standards and must adhere to strict compliance rules that are monitored by their regulating bodies. Financial planners are trained in many fields, know about government legislation and ongoing changes so that they can guide you depending on your situation to achieve the best financial benefits and outcomes for you. If you have several super funds, for example, they can compare and consolidate them all into the one that fits best. They give you suggestions on how to protect yourself and grow your super investments faster while saving tax along the way. I'd say, to sum it up, the two major benefits of using a financial planner are:
How do I get a financial planning coachA personal financial planning program is a major undertaking. It requires time to research the best possible options for a wealthier financial future. It can't be produced in a weeknight after work. We have put together a step-by-step basic financial planning guide that will help you with getting an understanding about the financial planning process. I encourage you to have a go at it and follow our structured process. Of course, time is of essence, and not everyone has time to do their own financial planning. That's where the assistance of a financial planning coach comes in handy. They already know the process and can focus more on your personal objectives right from the beginning. Seek professional assistance if you don't have the time to do it yourself, or, if you don't know how to get started. Even if you've done your own financial planning before, a consultation with a professional financial planner can give you a good health check. You can discuss matters on a more detailed level too. Don't put your financial planning off - TIME is one of the key elements to financial success. A professional financial advisor can put the first stakes into the ground so that you can start with your wealth creation and other strategies immediately. Such strategies need time to be successful. With more time spent on financial planning strategies and less time lost by inaction you will inevitably get bigger results. A good financial advisor will coach you step-by-step. Check out a few financial planners in your area and see who you are most comfortable with. They are an invaluable source of knowledge and deal with client situations every day. They know many financial solutions that you may not be aware of. Typically, in a financial coaching relationship you gain access to:
Financial planners are all different. I suggest you contact a few and check them out. The internet and online yellow pages can help a great deal. Find the financial coach that resonates with you the most; the person that you feel most comfortable with. At Equity Resource we know about the importance of having an open and honest relationship with our clients. We're dedicated to assisting our clients with making sound financial decisions for their lifetime. We acknowledge that the human factor is a very important aspect and for that reason, we offer an initial consultation absolutely free. This gives you the chance to check us out first and see if we're a match. More information:
Importance of Financial Planning
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