top of page

Financial Planners 101

Do you have a financial planner? Do you need one? Not sure?

We're here to help clear up some information surrounding Financial Planners for you.

Welcome to a crash course 'Financial Planners 101', where we run through any questions you may have.

What does a Financial Planner do, and is it worth having one?

A financial planner is someone tasked to help you make educated financial decisions to plan for your future and goals alongside. Their job is to give you advice on budgeting, investing, your super fund, retirement and estate planning, insurance, and taxation. All these facets will ensure they can give accurate advice tailored to you, that will continually meet your financial goals and risk tolerances.


Having a good financial planner specific to you needs can set you up financially. They can help you make educated financial decisions in events such as major life changes; strictly from a financial standpoint, allowing for a potentially better outcome. This advice includes, for example, how much maternity leave you can afford to take when having a baby, or how much to invest in superannuation.


This external advice assists when life curve balls and ever-changing financial climates come your way.


How much will a Financial Planner cost me?

On average the cost of seeing a financial planner is about $3,000-$5,000 a year but will vary from person to person based on their services. When getting in contact with a planner, it is best to ask upfront for the cost of their services, advisors are regulated to be very transparent of this cost.


Who is better for me? An Accountant or Financial Planner?

To put it simply, accountants are tasked with reporting and analysing your financial transactions and forecasting and auditing your statements. This means instead of analysing to give advice, accountants will analyse, compute, and prepare tax returns accurately, manage timely bank payments, help with saving time looking at expenses, etc.


Whereas your financial planner assists with long- or shot-term management of financial goals through analysis of your budgeting, tax, super, and other such elements listed above. We recommend a combination of both professionals to assist with your decision making process.


Should I get a Financial Planner, or can I do it myself?

If you are uncertain as to how you want to manage your money, investments, and overall financial security of yourself and family, a financial planner can be worth the money spent.


Another factor to consider, if you come from a well-versed financial background and have adequate knowledge of finances and investing; if you are justing looking to grow your wealth, most likely you won't need an financial advisor. Additionally, if you have a deeper understanding of the process and how to reach your financial goals, you may be able to complete this job yourself.


If you are not confident in your financial bookkeeping abilities or understanding of the financial market climate, then having an advisor to take that job can be advantageous to the management of your finances.


How to look for the right Financial Planner for you.

When looking for financial planners it is important to what an idea of your financial goals in that moment, it is ok if these change along the way. Having priorities in mind can help you in the search to find an advisor and understand what they can do for you.


The type of advice for you.

In choosing the right advice for you, it's worth considering the type of advice your are seeking. Ask yourself; do you want generalised advice or more personal advice? From there, are you after simple surface level advice, a comprehensive hands-on approach, or an ongoing long-term consideration of your goals and financial requirements.


Meet and compare to find the best fit for you.

Don't be afraid to shop around to get a feel for the right advisor for you. it is not just important to receive accurate tailored advice, a major factor is a good relationship with your planner.


What is a Financial Planners specialty?

An important point to consider when you are either looking for, or are considering a financial planner is their given speciality. If you have found an advisor who specialises with investments, but you need tax advice, then that planner may not be the best fit for you.


Make sure your advice matches your risk tolerance and both your long & short-term financial goals.

As you move forward in finding a financial planner, and even when working with your current advisor, it is important to check in on occasion. Checking in with yourself and your advisor helps to understand if the advice you are being given remains in line with your given financial goals and risk tolerances. if your goals have changed, your advice needs to change with it, in having a good relationship with your advisor that transition is made seamless.


IMPORTANT NOTE: Ensure you have a continual open line of communication with your advisor to avoid setback in planning for your future goals.


21 views0 comments

Recent Posts

See All

Comments


bottom of page