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Five Reasons You Need A Financial Planner Now

Walter Fleitmann - Thursday, September 29, 2016

When it comes to your finances, don’t get stuck in a reactive cycle by only making short-term financial decisions at the cost of your long term vision. The saying ‘Failing to plan is planning to fail’ also applies to your goals in life. Having a sensible financial plan to navigate life’s daily rollercoaster is essential.


Here are five reasons to work with a qualified, competent and honest financial planner to get your finances back in shape.


REASON 1: WORK WITH EXPERTS WHO LOVE PERSONAL FINANCE

It is often tempting to take a DIY approach in life, including managing all aspects of personal finance. However, the strain of being stretched across different disciplines and being a jack of all trades (but master of none) is unwise, especially when you need to plan for your future financial self. Many people try to “wing it” when it comes to managing their personal finances, only to find themselves under financial strain some time down the track and without an opportunity to stop working, or even take a hard-earned family holiday. You would do well to remember the adage “Do what you do best, and outsource the rest.”


It may be easy to ‘justify’ a DIY approach to managing personal finances due to the disturbing media coverage of unscrupulous financial planners, however it is possible to find a financial expert who can provide advice tailored to your personal needs and financial goals, who is ethical and that you also get along with.


ASIC’s financial advisers register allows you to run background checks on a financial adviser by checking their history, qualifications and current employment status. The value provided by a trusted financial planner who has significant experience in the financial services industry, and who is passionate about personal finance and understands financial markets, will soon become apparent when you start setting and achieving specific and measurable goals.


REASON 2: BEING PREPARED FOR THE UNEXPECTED

Life throws curveballs at us all the time. If you haven’t put in place a sound financial plan, you may be out of pocket, or worse, be in severe financial stress by a single unfortunate life event. Do you have a ‘Plan B’ if you suffered from a long-term illness? Knowing that you have the right personal insurance in place, such as a dependable income protection policy, will allow you to take your mind off the financial concerns, and allow you to focus on recovering from life’s unexpected events.


Ask for a financial planner who can clearly explain your current life insurance cover to you, so that any gaps are discovered and reviewed, as this is your financial safety net when things don’t go according to plan. The right financial planner will take the time to discuss your insurance policy and options with you. This will let you understand which risks you are covered for, and which features may be most relevant to your circumstances. As anyone with car insurance will tell you: “We’re all great drivers…but we still have car insurance ‘just in case.’”


REASON 3: TAKE CARE OF YOUR RETIREMENT…BEFORE YOU GET THERE

It is often touted that many Australians will not have enough in superannuation savings for a comfortable retirement. While there are some stop-gap options available, such as accessing home equity, this can be prevented by getting on the front foot early, and getting the right superannuation advice for your personal circumstances and goals.


One of the most fundamental financial principles is that of the time value of money. This principle states that a dollar today is worth more than a dollar in the future, as a result of inflation eroding your purchasing power over time. Being a good steward of your money means making wise choices, so that you can make your money work hard for you.


To make sure you get as close to your retirement goals as possible, it is important that you increase your financial education quickly, for you to start making better financial choices sooner. Working with a qualified, competent and honest financial planner provides you with the tools and strategies to give you the best chance of having a stress-free retirement.


REASON 4: BALANCING THE LATEST INVESTMENT TRENDS WITH TIME-PROVEN PRINCIPLES

The financial investment markets seem to be increasingly volatile in recent times. A financial expert is able to work with you to set up an appropriate investment strategy that is suitable for your personal needs, and to help you keep your investment objectives on track.


Just as cars are continuously being improved and become more efficient, new financial products are always being developed to provide cost-effective and efficient solutions to financial problems. A good financial planner will provide a number of options on the appropriate financial instruments that will allow you to achieve your personal financial goals.


Obtaining factual information on available financial products and considering relevant strategies takes time. When taken together with constantly changing legislative frameworks, most people may end up chasing their tails. Working with a financial expert, who is required to remain up-to-date with the constantly changing financial landscape, will allow you to implement a balanced financial plan that uses the most relevant products together with time-proven strategies and principles.


REASON 5: GET THE RELEVANT INSIGHTS

In an age where information is so easily accessible, it is easy to be overwhelmed with financial facts and figures, all of which mean nothing unless you apply the right lens to translate data into useful insights. A financial planner that understands all aspects of personal finance will provide you with the right analysis and recommendations, to provide you with a financial strategy that is relevant to your unique goals and circumstances.


Many people don’t achieve their goals because they focus on the wrong things. A good financial planner will help you shift your focus to the relevant areas, and will work with you to set and achieve your desired outcomes, so you too can win financially.


To start taking positive steps towards a better financial future, Enigma Financial Planning offers obligation-free initial consultations at no cost to you, to get your finances in order now.


This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.


Enigma Financial Planning Pty Ltd (ABN 63 612 266 083) is an authorised representative and credit representative of AMP Financial Planning AFSL 232706.