Financial Planning Advice – Secure Your Future

PILING CREDIT CARD BILLS, BANKRUPTCY, TAX BURDENS AND FINANCIAL DEPENDENCY!

Do these worry you? Well, if you wanna avoid reaching a state of panic, go for some sound financial planning advice sooner rather than later. Financial advisors are expert professionals who can manage your finances, and suggest a tailor made investment plan after evaluating your specific needs and resources.

These guys are also known as financial planners. They are trained to advise on a range of matters such as investment strategies, budgeting, retirement planning, insurance etc. You can also seek advice on business needs, mortgages and loans. Remember, financial planners do not advise on tax accounting, estate planning or specialized needs like preparing a will. These are the domain of other specialists.

Once you make financial planning part of your DNA, you will notice you’re saving more! Frequently, incorrect financial decisions create unnecessary mess-ups in life and timely financial planning advice might just save you from one.

Any financial planning advice you receive must fit your circumstances. While you have the right to conceal personal information, this might mislead your advisor from devising the most appropriate financial plan for you. The following list covers common questions you can expect from your financial planner:

1) Queries about your current financial status and expectation of the future.
2) Questions about your personal circumstances to help determine your attitude towards risk. Attitude to risk means whether you are conservative, aggressive or moderate in the way you invest.

3) Don’t be taken aback on being asked personal information. Financial planners need this information to put together your financial plan. They will ask for details like your age, personal income, family income, future income including inheritances, day-to-day expenses, family circumstances such as number and health of dependants, future expenses, assets and liabilities, tax paid and tax owed, insurance and current investments.

4) Your advisor will also want to know your financial goals, plans for retirement, how you plan to educate your children, and whether you are prepared for unforeseen circumstances. Other questions could be whether your will is up-to-date and if you foresee any large expenses.

After understanding your situation and needs, your financial planner will develop and present you with written recommendations as a financial plan. They will discuss the same with you and seek your concurrence, after which they will implement the recommendations. Financial planning advice is not a luxury to be indulged in once in a while – your financial objectives and plan need reviewing from time to time.

At the end of this exercise, your advisor will give you a set of the following documents:

1) Financial Services Guide: This outlines who the planner is, what they can advise on and how they are paid.

2) Written Statement of Advice: This document outlines relevant information that you have provided, the advice you have been given and why it is suitable for you.

3) Product Disclosure Statement: If your advisor has recommended a financial product, then this document gives you information about its features; financial implications such as applicable fee and advisor commission; benefits and risks of investing and what to do if you have a complaint.

Seeking financial planning advice is all about helping and securing your future