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Why Financial Planning?
Is there a life experience you’d like to be having right now but you can’t afford it?
Do you like the sound of quitting your job without thinking about how the bills will be paid?
Would you like to see your family and friends more than you do your work colleagues?
If so, are you doing enough about it?
Consider the wisdom of those who have walked the path before you. A recent survey of Australia’s retirees over age 55 revealed:
- 44% wished they’d started saving earlier
- 38% would have made better financial plans/sought expert advice
When asked how far out they wish they’d started saving, close to 70% wished they’d started saving for retirement at least 16 years earlier.
(Source: Citibank Retirement Index, Number 2, 2006)
When should you start?
If you haven’t started already you should start now. The earlier you start:
- The earlier you finish; or
- The more you will have along the way and the more you’ll have at the finish
Unlike deadlines at work, intense work under last minute pressure will not get you over the goal line. Intense work in the financial world means big lifestyle sacrifice and very high risk. Neither of which are pleasant.
The best pathway to lifestyle riches is gentle steps over a long period of time.
You may have heard of this before as “using the power of compounding”. Starting early not only reduces the strain on your current lifestyle but can give you tens, even hundreds of thousands of extra dollars of savings over the long term. Can you imagine what that might buy you?
It’s more than just budgeting and investing
On social occasions when people discover that I am a Financial Planner I commonly hear two responses:
- So, you help people budget; or
- So, you tell people where to invest their money
Yes, they are aspects of how Financial Planners help people. But it’s much broader.
Financial Planners are more like a Project Manager for your money. You’re the leader and you set the direction. The Financial Planner helps you set the pace and manage all the contractors along the way.
Financial Planners can help you:
- Save faster for your short-term goals, such as cars, holidays and home improvements (including home theatre systems)
- Have enough money to pay for your children’s education and all the other costs of raising children
- Protect the lifestyle you and your family have now against undesired events such as job loss, injury and illness
- Finish “work” early so that you can spend more time on your other passions
How Financial Planners help
Financial Planners are experts in helping you use your money better. The better you use your money the more lifestyle choices you’ll have.
Financial Planners help you have more lifestyle now by helping you:
- Pay less tax
- Waste less money (e.g. in fees and loan interest)
- Get more value from what you spend
The first two actions will give you more disposable income. You can choose to spend that extra disposable income on lifestyle now or on lifestyle at some point in the future.
Financial Planners help you have more lifestyle in the future by helping you:
- Earn more interest (return on your investment)
- Keep more of your savings (e.g. lower tax and fees)
- Get more benefits for your costs (e.g. broader coverage for your insurance premiums)
Here’s what one reader said about their experience of seeing a financial planner...
“I feel that the advice fee paid to our financial planner was a good investment. It motivated us to act, plus gave us the confidence to consider strategies and investments we weren’t even aware we should consider. As a result we are much further forward on our wealth creation journey than if we hadn’t seen a financial planner (and made more than the fee paid to our adviser).”
Avril T, Senior Engineer
Do you need savings before seeing a Financial Planner?
Since financial planning is much more than investing, you don’t need to have saved a cent before you see a Financial Planner.
From the moment you start earning, a Financial Planner can help you keep more of what you earn.
Are you doing enough to have the lifestyle of your dreams? Are you sure? If not, it’s time you got some expert assistance. Call me on 1300 669 101 now. No more excuses – the time to start is now!
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Matt Hern trades as FINDRE
(Empowered Wealth Pty Ltd t/as)
ABN: 21 592 525 720
Phone: 08 9467 7320, Fax: 08 9463 7848
PO Box 259, Bull Creek, Perth, Western Australia 6149, Australia
Website: www.MattHern.com.au
Blog: www.Money-Guide.com.au
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