Building Wealth With Expert Guidance: How A Financial Planner Can Help

Financial planning is a client-centric process that aligns personal goals with strategic financial decisions. It begins with a comprehensive assessment of the client’s current financial status, risk tolerance, future aspirations and the support (if any) that they may need with acheiving their financial goals moving forward.  Based on this analysis, a tailored strategy is created and appropriate financial products are recommended. This approach is documented, highlighting how the proposed plan enhances the client’s financial position while respecting their risk preferences. Transparency is key, with all associated costs clearly outlined, empowering clients to make informed decisions about their financial future.

Regardless of your age, earnings, net worth or financial aspirations, financial planning can help you identify and meet your personal and financial goals.

Target areas for financial planning

An experienced and effective financial planner will take time to understand your current financial situation and future wealth-building goals before offering advice in the following areas:

• Budgeting
  Having a personal budget and aiming to stick to it is the cornerstone of successful financial control. Your financial planner can help you to create a realistic budget in line with your goals.
• Debt management
  A financial planner will help you to develop a repayment schedule for any debts you currently have, prioritising the highest-interest loans such as credit card debt and personal loans. Paying off debt can improve your credit score, and debt consolidation may help you to achieve a lower overall interest rate.
• Investment advice
  Your investment portfolio needs to aim for long-term returns in line with your financial goals, and also for diversification to align with your desired level of risk. High-risk investments can deliver greater returns, but a more conservative approach reduces the likelihood of capital losses.
• Tax optimisation
  Acting as your wealth manager, your financial planner will help you to develop permissible tax minimisation strategies, such as timing of capital investment decisions and utilising tax losses.
• Insurance
  Insurance cover is a vital part of wealth management since it protects your accumulated assets at every life stage. Your financial planner will regularly review your insurance needs, including life insurance, to identify gaps and recommend policy types.
• Retirement preparation
  Building retirement funds is a long-term strategy best started early in your career, but it’s never too late to enhance your approach. Retirement savings can be augmented by procedures such as salary sacrifice, wise investment of any inheritance, and a pre-retirement portfolio review.
• Estate planning
  However you want to transfer your wealth to the next generation – be it to your family or a charitable cause – a financial planner can help you to do it in the soundest and most tax-effective way.

How to find your ideal financial planner

Finding your most suitable financial planning advisory firm involves deciding which areas of your financial position need the benefit of guidance, working out what level of advice you can afford, and then researching the available options.

• Focus areas
  Depending on your life stage, you may choose advice covering any or all of the target areas discussed above, from early-career budgeting to post-retirement supported living.
• Fee structures
  Receiving financial advice involves paying fees for the benefit of expert guidance, so depending on the financial planning advisor you choose you may enter into arrangements  for a once-off charge upfront, a plan implementation fee, an annual retainer or hourly fee, an investment platform fee, or an annual percentage of assets under management fee.
• Careful research
  Perform due diligence before you choose your financial planning advisor. Narrow down your choices to a few firms, and then ask each one the following questions:
  • What clients do you work with?
  • What services do you offer?
  • What is your approach to planning?
  • What information do you need from me?
  • What is your fee structure?
  • Where are your offices located?

The planning process

An expert and empathetic advisor will take the time to understand your financial goals, devise a specific strategy for you to achieve them, and recommend financial products to underpin the strategy.

• Financial goals
  Much like any SMART goals, your financial plan needs to be Specific, Measurable, Achievable, Relevant and Time-bound. For example, you may aim to be debt-free in 10 years, or retire at a particular age with a specified income.
• Tailored strategy
  Everyone’s financial needs and aims are different. Your strategy needs to fit your personal objectives, financial capacity and available time frame. In the case of retirement income aims, an expert advisor will help you to understand the importance of a diversified investment portfolio, and how to manage longevity risk.
• Appropriate financial products
  Finally, your advisor may propose certain investment and insurance products to complement your personal strategy.
• Reviews
  Reviews are an essential part of the process and underpin the first three steps in the planning process; goals, strategy and appropriate products. A review starts with a client update, which includes confirming, updating and adding new client goals, updating their financial position, and then confirming their attitude to risk (whether this has changed or not). The strategy and products are then reviewed in light of the client update, the prevailing or upcoming economic situation, and any legislative changes.

A helping hand to secure your future

Bentleys’ expert and empathetic advisors can work with you to identify goals, create a detailed financial plan and make informed decisions to help you meet your objectives and secure your future.

Want to know more about how Bentleys can help you?

Make a time for a chat with us today. We’re here to help you get where you want to be.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.

Simon Barwick is an Authorised Representative (Number 255335) of McLean Delmo Bentleys Financial Services (ABN 39 073 019 815, AFSL 000245558). Read our Financial Services Guide.