As a financial planning professional, a question we get asked a lot by new clients is “Do people really need a Financial Planner when so much DIY information is available online?”, and so we’ve decided to clear up the issue once and for all.
There are so many reasons why a Financial Planner is essential to achieving your financial goals, whether they be saving up enough for a deposit, affording private school fees to having enough for a cozy retirement.
Here, we’ve put together the most critical reasons why you should have a Financial Planner, as well as the benefits that you are likely to achieve.
Benefits only a Financial Planner can provide.
1. It’s educational
A financial planner is a professional trained in educating others on how to achieve financial goals. Financial planning is looking at the big picture and working out the necessary steps an individual should take to reach their destination. Can you afford to take a shortcut or do you need to take a detour first then cruise along the highway? Which way and how you get there is what clients learn from their planner and this educational based relationship is valuable.
A private one-on-one financial education that is designed just for you are one of the many benefits only a financial planner can provide. They help to cut through endless amounts of noise and clutter and keep matters simple, relevant and personal to your goals.
2. They can help perfect understanding
Financial planners are great at helping clients understand the importance of financial planning and that learning and understanding how to make the right financial decisions is an ongoing process and not just a one-off event. Having a financial planner is like having a life coach working with you every step of the way, guiding, counselling and coaching you along. They inform you of new legislative changes and mentor you with their years of experience and knowledge.
3. They can help with individual needs
Everyone is an individual, and therefore everyone has unique and personal needs and requirements. Financial planners have great depth of flexibility and awareness to understand everyone has vast and different goals which require different set of financial strategies and solutions. Financial planners understand Individual needs can be simple to complex and are astute at pinpointing the right amount of financial treatment and prevention where possible.
4. They help to set realistic goals
Financial planners are empathetic and sensitive when it comes to setting realistic goals for their clients. Some clients find it hard to work out what their goals are. This is where the educational part of the process kicks in, very early on in the financial planner and client relationship. Clients have high hopes and big ambitions but for some clients it is unrealistic as their financial position and means cannot simply afford them. This is where the value of a planner comes to light where they can factually explain and educate clients why they need to set lower expectations or how they can achieve their goals if they are prepared to dig deep and work harder. Financial planners can help clients to set realistic goals by continuous guidance and coaching.
5. They help to set discipline
Financial planners help to instil self-discipline in clients when it comes to managing their money and working towards their goals. Financial planners can be tough and challenge their clients to keep up the pace but are equally happy to celebrate financial milestones and motivate their clients on. Throughout the planning process clients learn to become disciplined and committed as they experience the results along the way with their planner cheering them on.
6. They give clients purpose and clarity
There are many types of clients:
a) Those who like to do their own thing. Spend a few minutes online, read up on some new investments and chat with their friends to get the latest tips then call it a day and decide to do something later.
b) Those who have a plan in mind, and invest with a purpose. They generally have a regular savings plan set up, stick to a budget and make financial decisions with a clear set of intentions and understand exactly why. They are tunnel-visioned and know what to do to get the results.
It’s fairly obvious that the first group will not be achieving their financial goals unless they get some help and have someone to direct them.
7. They write up personalised financial plans
Financial planners are not only your sounding board, coach or counsellor but they are great in keeping clients accountable and responsible by documenting goals and recommendations in a personalised financial plan. It is tailored to suit each clients’ needs and goals against their investment timeframe and risk appetite. This is ‘the plan’ to ensure clients stay on course to reach their destination.
A Financial Planner is your life coach, money manager, investment planner, guide and a motivator all in one, and without them your financial goals are that much harder to achieve. So what are you waiting for? Find a financial planner to help achieve your financial goals.
Information in this web page is based on regulatory requirements and laws, which may be subject to change. While care has been taken in the preparation of this document, no liability is accepted by Financial Wisdom, its related entities, agents and employees for any loss arising from reliance on this document.
This web page may contain general advice. It does not take account of your individual objectives, financial situation or needs. You should consider talking to a financial adviser before making a financial decision.