Financial planning is simply preparing a strategy and some related processes towards an achievable financial goal.
A financial planner is a professional who helps you clarify your current finances and set a financial goal. A planner is qualified and will work with you, incorporating your goals, situation, feelings about risk and dreams into a plan for your money.
Why do I need this?
It’s hard to know what you don’t know, and financial decisions can be really tough. You need to know about risks, returns, portfolio composition and asset classes, as well as understanding the relevant legislation and tax implications. Then there is the emotional aspect of your money, your lifestyle and your future – and your family’s future.
So talking to a financial adviser can help make sense of your situation and thus make informed decisions. Together, you and the planner can identify suitable goals and objectives, and then plan and implement strategies so that these goals can be achieved.
The following section can be interchanged with www.avsuperadvice.com.au/advice-works (content still in draft mode) – two different ways to present this information – or use both as one is simpler than the other.
How it works…
Our consultants can help you understand and make decisions about your AvSuper membership. After chatting to you and collecting all relevant information, our Member Advice Consultant will analyse your situation and prepare a written statement of advice (SOA) outlining the options which we think best suit you.
Working with a planner…
Remember that you want a long term relationship with a financial planner, so be open and honest, and ensure you ask lots of questions to get things off to a great start.
Together, you will move through the following steps…
1. Set the relationship
- establish what advice you want
- ensure you trust and feel comfortable with the planner/adviser
- agree on the process you will follow
2. assess your current financial position
- provide planner with financial status such as bank statements, loan documents, insurance policies, super statements and major expenses
- planner will help establish your status
3. identify your goals (for planning and long term future)
- do you have a short term goal (like paying off all your credit cards and loans) as well as longer term goals (such as paying off a a mortgage, sending the kids to a private school or saving for a comfortable retirement)
- your planner will talk to you about your lifestyle goals – do you want annual overseas holidays, a nice holiday home or a lovely garden to potter in?
- planner will help you understand the finances required for your goals (for example to have $x a year in retirement may mean having $y in super by the time you’re 40 or 50)
4. your planner prepares a personalised plan for you
5. implement the plan...
6. Review your plan
- have you reached your short term goal? If not, maybe…
- does the plan need some tweaking due to changed circumstances, such as starting a family, a divorce, an inheritance or changed market conditions?
- have your feelings about risk changed?
- have your expectations about your long term financial future changed?