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Simply put, a financial planner is a professional who helps you strategise and achieve your financial plans. If you’ve ever thought about organising and plotting your finances, then here are several good reasons to consult a financial planner.
Reason #1: To manage your finances
Some people have complex finances, while others just don’t have the capability, time or self-control to manage their own. Either way, many of us need help in handling our funds. That’s where a financial planner comes in: they can determine your net value, assess your current fiscal situation, and help you identify your financial goals. From there, your financial planner can also suggest what strategies you can use to help you earn more and maximise your money.
Reason #2: You’re planning for retirement
Unless you intend to work for the rest of your life, you’d probably want to plan for your retirement. Yes, you may get a regular pension when this happens, but you shouldn’t rely only on your super when you stop working.
With the aid of a financial planner, you can plan for your retirement by helping you flesh out how you plan to live during that period of your life. This is important because lifestyle would determine how much and how often you’d withdraw from your nest egg, and if your vision is viable in the first place. More importantly, a financial planner can establish how much you need to save so that you can realise your monetary goals for your retirement.
Reason #3: You’re facing a major life event
Important life events like marriage, children, major illness or divorce are good reasons to confer with a financial planner. These events usually bring a significant change that will surely affect your finances. Marriage, for instance, would involve sharing of assets and passing on the responsibility of money management to you or your spouse. A major illness, on the other hand, means you probably won’t be working and earning, and would most likely use up your savings—thus the need for options. A financial planner can help you prepare for or deal with these major changes.
Reason #4: To save for your child’s college fund
Saving for your child’s college isn’t just about putting money in your bank account until the day arrives. You’ll also have to consider several factors like how much university costs (e.g. undergraduate courses average AU$10,000 to AU$16,000 annually), what financial product to use (e.g. mutual funds, bonds), what financial aid would your child be qualified for, and what your tax considerations are. There’s also the matter of saving for college as opposed to saving for retirement. To iron out these many details, you should consult a financial planner.
Reason #5: You want to make your own financial plan
Sometimes, you don’t really need a major life event or financial difficulty to see a planner—you just need to put together a financial plan so that you can set a goal and have direction. A financial planner can assist you in evaluating these goals to decide on what’s feasible and come up with a suitable financial plan that will help you pull it off.
