Do you have goals that are going to cost money?
Then you need a plan. "To fail to plan, is to plan to fail." We have heard that before, and it's true.
So, what sort of plan do you need?
- It might start with a way to organise your finances and create on ongoing cash flow surplus.
- For those paying a lot of tax, it most likely will include ways to invest which will turn tax savings into investment gains.
- Sometimes 'gearing' is appropriate. That's a way of multiplying investment returns.
- Projections are often appropriate. Naturally one needs to be careful not to depend on them, however, it can be very helpful to see where your current trajectory is headed.
- Any plan will need periodic reviews.
Every plan needs to begin with a thorough consideration of both your current position and situation as well as your goals and objectives. While 'limited advice' can be given to focus in on just a few things at a time, it all needs to be done in light of the big picture. Hence, your adviser will begin with a thorough fact find and 'client needs analysis' to get a clear view of where you are at and what you need.
What if you are not certain of your objectives?
It's easy to not even think about your future. Living a day at a time does have some benefits, but not spending any time in looking towards the future is downright foolish. But that doesn't mean that you need to have it all worked out before you see a financial adviser. Part of the financial planner's job is to assist you in working out an appropriate set of objectives.