Many would have heard the expression “If you fail to plan, you plan to fail”. So how come so many Aussies do not have a financial plan? It’s understandable that superannuation, life insurance, financial solutions are not everyone’s cup of tea. In this article we look at the six benefits of having a financial plan.
1. Help you determine your financial goals
Have you ever thought about your financial goals? When you see a professional financial planner, one of the first things they will ask you are your financial goals. It is these goals that will form the basis for the financial advice. Everyone has a dream of being financially free and secure, but without goals they remain just dreams.
2. Assess if your goals are realistic
You may have a goal to retire by the age of 50 and be able to go on overseas trips every year. A financial adviser will help determine if this goal is realistic for the timeframe. After thorough analysis, it may mean that attaining certain goal may need a little longer to achieve.
3. Identify risks you haven’t thought of
Part of a financial plan is risk management. Your professional financial planner will look at your risk of becoming disabled and being unable to support yourself or your family, or dying early and leaving your family with the burden of mortgage and funding your children’s education. This is where the financial advice will look into things like life insurance.
4. Help you grow your wealth
A professional financial planner will help find new ways to maximise your savings. It may be able to take advantage with tax savings in superannuation, or find tax effective ways to pay for your life insurance, to finding investments that offer more growth but are in-line with your risk tolerances.
5. Provide advice on how you can achieve your goals
Your financial planner will provide financial advice on ways you can achieve your goals. It may mean combining your super funds where you have multiple accounts exists, it may just mean putting more money into superannuation, or offer financial solutions that allow you to build more wealth or pay down debt quicker.
6. It will allow you to measure your progress on your goals.
Once the financial plan is implemented, you and your financial planner will regularly review with you to ensure you are going on track and make the necessary changes to your plan.
Things to consider
Many people try to do their plans themselves. The question is will you have the time to sift through the information from the internet which are sometime contradictory. Save yourself a lot of time and energy by seeking help from a professional financial planner. If you would like to find out how one of our financial planners can help with your plan, contact us to make an appointment today.
Author: Ricardo Bernal
Disclaimer: Information on this site may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.
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