The expertise and advice of an Australian financial planner is valuable assistance that most people do not take advantage of when thinking about their financial future. Read on to learn more about the importance of financial planning and its effect on your future.
The Changing Role Of A Financial Planner
In the past, financial planners were predominately sales representatives for financial product providers, like life insurance companies and managed funds.
People criticised this sales aspect. In addition, there were unscrupulous practitioners who were responsible for tarnishing the industry's image even more.
The industry has evolved over the past ten years to include much more just selling investment funds and insurance policies. Trained experts now work closely with clients to create a customised plan.
A quality financial planner works with their clients to provide advice that is highly personalised to their individual needs, goals and preferences.
What a professional planner does for the client:
1) Set goals with built-in accountability
2) Manage expenses and cash flow
3) Set up a savings plan
4) Debt reduction and credit card elimination
5) Plan for retirement
7) Minimise Tax
8) Set up an education fund for minor children
9) Investment planning
10) Risk management / Insurance
11) Estate planning (like Wills and Powers of Attorney)
12) Creating a viable business succession plan
Different Types of Financial Planners
Not all areas of financial planning will be relevant to every client. That's why many financial planners choose to specialise in one or more areas of advice, such as retirement planning, or small business advice.
When seeking financial advice, you should find financial planners who specialises in the type of advice you require.
Benefits Of Financial Advice
Having a quality financial planner is like having a sounding-board for your goals, ideas and questions. When a financial planner understands your situation, needs and desires they can provide you with your options and help you make informed financial decisions.
For example, if you had an extra $100 per month, should you reduce your credit card, pay it off your mortgage, or save it towards your children seduction? A financial planner can provide you with advice on your best options taking into account your specific situation.
Having a professional assist in planning will keep you stay focused on your goals. There is always someone to answer your questions and offer advice.
Financial Planner Is Not A Regulated Term
In Australia, the current laws allow many different people to call themselves a 'financial planner' and provide some type of advice to consumers. For example, product sales reps, insurance brokers, share brokers, finance brokers, accountants and even bank tellers.
Before hiring a professional to help with your finances make sure you ask questions to determine if he or she can provide the kind of comprehensive advice you need.
About the Author: