Reasons to Contact a Financial Planner

The importance of financial planning cannot be overstated in today’s world. It is safe to say that you can’t go wrong with an effective financial plan.

In Australia, a financial planner is a representative of an organisation licensed by the Australian
Securities and Investments Commission (ASIC)
to provide you guidance for your finances.

Regarding financial planning and planners, a staggering amount of Australians believe that a financial planner is needed only when they are in dire financial straits.

Financial planners are available to help you figure out the economic aspects of your life. They are useful at every stage of your life.

Whether you are approaching retirement, raising a family or just leaving college, a financial planner can assist you in maximising your opportunities.

Today, we’ll be discussing a few of the most important reasons to contact a financial planner; they include the following topics.

Wealth Creation

This is arguably the most interesting reason to reach out to a financial planner. The primary aim of most people is to have multiple sources of income, even after retirement.

Wealth creation is vast and can be further divided into:

  • Investment Planning: Investing means the act of becoming wealthier by trading in assets that provide income for you while in your possession and an increase in capital when you sell them.

  • Wealth Creation: This term can refer to anything from money-making ventures to the accumulation of assets.

Wealth creation is as vague of a term as they come. It also has to do with minimisation of taxes, debt management, and investment planning.

  • Property Strategy: Buying a home is one of the Australian dreams. This is one of the foundations on which modern Australian culture was built.

This dream is slowly becoming a nightmare as very few Australians can afford their dream home. Financial planners are available to guide young Australians on their journey to home ownership.

Retirement Planning

To adequately plan for your future, you’ll need to be familiar with the terms superannuation and retirement planning.

  • Superannuation: A superannuation fund refers to payments made by an employer and employee towards a future pension. Employees who contribute to a superannuation fund during their careers are entitled to the money they invested in when they retire.

  • Retirement Planning: Retirement planning is quite simply
    the process of arranging your finances in such a way that you can keep living
    the lifestyle you’re used to even after your working days end.

Asset Protection

While planning our finances, a large number of us forget to account for the cost of protecting the assets we hold dearest.

Your most important asset is you. Protecting yourself should be of the utmost importance to you.

  • Personal Insurance: Personal insurance encompasses a few sub-classes including; life insurance, and income protection amongst others.

Personal insurance plans are set up with the aim of ensuring that you can live comfortably during life-changing emergencies.

  • Estate Insurance: This is the consideration and subsequent distribution of an individual’s assets and liabilities.

Estate planning can also be a wealth creation and protection tool.

Debt and Cash Flow Management

Debt is one of the most powerful tools available to us, when used right it can be a means of wealth creation but when misused it can quickly become a bottomless trap.

More often than not, we find ourselves wondering where all our money goes.

If you are asking yourself this question more often than you’re comfortable with, what you need is a Cash flow and budget manager to balance out your income against your expenditures.