D.I.Y – Couldn’t I do this myself?
We often meet with prospective clients who aren’t really sure what financial planning is all about and they ask – “couldn’t I do this myself?” . In today’s world of information overload, google savvy clients have likely researched particular financial planners without too much knowledge of what they actually do.
Prospective clients will typically have a need or a desire that they believe fits into their perception of what a financial planner does. In many instances these needs or desires revolve around certain triggers in a person’s life where they contemplate their current situation and what the future holds. There is usually a financial concern or financial impost on a particular course of action that they want guidance on. In many instances the perception remains that financial planners are in the main investment advisers and whilst this can be a core component of the planners service offering it is just one element of the overall financial planning process.
Financial planning as we see it, is quite simply having the forethought to have determined what you value most in life, what you are trying to achieve and having a plan in place that quantifies the capital required for you to achieve these goals. It includes a series of steps (strategies) that if followed will get you to your desired outcomes and thereby achievement of your goals. As no one can predict what the future holds the plan will use a number of assumptions such as the rate of return you achieve from your investments. These assumptions are used to predict what the future may look like. Financial planning should consider the options available to achieve the desired goals as effectively as possible and financial models are used to determine optimal strategies. When done well financial planning will reduce the time necessary and effort required in achieving the goal. A plan is like a road map. When following a map you can clearly measure how you are progressing towards your destination following the predetermined route. Similarly by following a financial plan you will know that you are taking the optimal route towards your destination, that is, your goals.
The role of the financial planner quite simply is therefore to help you get clear on what it is you are trying to achieve and develop a financial plan to help you get there whilst optimising along the way and keeping you on track.
Couldn’t you do this yourself? Well yes you probably could, though could you do it as well as someone who is highly qualified and experienced as a professional financial planner and do you have the time required to dedicate to doing this well?
When you work with an Eqeus comprehensive financial planner you will also get access to their technical capabilities in the areas of:
Cashflow planning – your spending plan giving you permission to spend. Making the most of your income.
Investment Planning – portfolio construction. How your investment capital is invested towards achievement of your goals
Retirement planning – including self-managed superannuation. How to optimise your current resources and determine whether you are on track or what changes should be made to help achieve your retirement goals.
Tax planning and structuring – working within our competencies and with other experts where required
Protection planning – contingency plans considering what if scenarios. Having the foundation to build wealth knowing that an insurable event won’t totally derail the plan.
Estate planning – having a properly documented estate plan that is so much more than having a Will.
You also will get access to our networks of inter related service providers providing you with solutions in areas that any gaps or requirements outside the financial planners skillsets require. This may include:
In summary a financial planner is someone who helps you develop, implement and maintain a meaningful financial plan and by doing so putting you in control of your future, whilst keeping you on track to achieve your goals more effectively than you could likely do otherwise.