As a profession, financial planning has been around for several decades. Even so, the notion of what financial planning actually does is not widely understood. For example, if I’m at a barbecue and the person I’m speaking with learns I am a financial planner, the first thing they will often say to me is, ‘What should I be investing in?’ And whilst investments are an important part of the financial planning puzzle, true financial planning is not about offering the latest hot investment tip.Effective financial planning takes stock of your current situation and your lifetime goals for your wealth – and designs a path for you to get there. In doing so, there is much more to consider than just what investments you choose.A financial planner can help you to:
Clearly identifying what your goals are and why they’re important to you is vitally important. This insight can provide the ‘fuel’ to motivate you to implement what’s been recommended for you, and to stay the course over the long term. After all, a great plan that’s not implemented is useless!
In Australia, the financial planning sector is highly regulated, and financial planners must meet minimum educational standards set by the Australian Securities and Investments Commission (ASIC). They must also operate under an approved licence, issued by ASIC.Depending upon the scope of their licence, financial planners can advise in areas such as wealth accumulation, wealth protection, business insurance, superannuation, social security, managing wealth transfer between generations, direct equities (shares) and more.Get ahead soonerGood quality financial planning will identify strategies that can significantly enhance your financial wellbeing and success. Having a financial plan created for you that addresses your unique situation and life goals is a great way to get your financial house in order and keep it that way forever.Jason Petersen is a CERTIFIED FINANCIAL PLANNER® professional and Head of Wealth Management at 5 Wealth Management Pty Ltd, AFSL 314889, based in Rhodes. Contact us today to discuss how we can help you to organise and improve your financial circumstances, so that you can achieve your goals sooner.