Portfoliofocus

Value of financial planning

Value of financial planning

Financial planning is about establishing a long-term strategy to secure your financial future with the lifestyle and living standards you desire.

The sooner you start thinking and working towards your financial future, the better prepared you will be in realising your objectives. Financial planning is relevant for people from all walks of life and all income levels.

Compulsory superannuation introduced by the Federal Government demonstrates that Australians will be required to plan and take responsibility for their own financial wellbeing, especially in retirement and not rely on social security to look after them.

A formal financial plan will help achieve your financial objectives whether they be wealth creation, retirement planning or estate planning. Financial planning is an ongoing process, requiring regular reviews so as to plan for your needs as your situation changes.

Effective financial planning requires expertise in such matters as:

  • Tax effective investment planning
  • Wealth creation
  • Superannuation and rollovers
  • Redundancy payouts and Eligible Termination Payments
  • Centrelink pension regulations and income maintenance

How a financial adviser can help

Investment choices, portfolio administration and performance monitoring are very complex tasks that most of us cannot possibly keep up with. Just understanding the changing tax laws and social security regulations and their impact on your financial situation, is a time-consuming and complex task.

A professional financial adviser has the knowledge and expertise to help you plan for your goals, manage your investments and review their progress. The financial adviser will take many aspects into consideration, such as your lifestyle objectives, investment risk comfort levels and tax situation to help develop the most appropriate plan for you.

A financial adviser will develop an individualised investment strategy that will account for all of these considerations, help you access a range of managers and investment products across such asset classes as equities (Australian and international), property and cash or bonds to supply a diversified portfolio.
 
Diversity is important to reduce the risk of any one manager or investment under-performing, whilst optimising the opportunity of your total portfolio meeting your expectations.
 
A financial adviser will regularly review your portfolio and make the agreed changes to best suit your present situation and your long-term goals.
 
An important feature is their ability to supply consolidated reporting for your total portfolio, its specific investment components and your tax position.