These days there’s no shortage of people who’ll be very quick to offer you financial advice, but it’s important to know who you can trust.
Continue readingTop 7 reasons why you need a financial planner
Life is busier than ever before and with so many things to get done, it can be easy to put off finding a good financial planner.
However, the ‘maybe later’ approach will eventually catch up with you and have a significant impact on your future.
In this blog, we explain seven ways a financial planner can put you on the path to the life you want and the legacy you deserve.
1: Setting a budget and managing your cash flow
Many of us have set out with the best intentions to create a household budget in the hope of finally getting ahead.
In theory, it all sounds quite easy – spend less than you earn and use the rest for savings and investments.
However, there are always unforeseen life events that get in the way. For example, an unexpectedly large electricity bill, a trip to the vet for your pet, or that must-have expensive Christmas gift for a member of your family.
A financial planner can offer expert tips to better ensure you’re prepared for these surprises and can teach you to grow your overall wealth.
2: Managing your tax obligations
When working hard and pouring your money into investments, the last thing you want is to lose a big chunk of it in tax, especially when you don’t have to!
Working with your accountant, a financial planner will ensure your financial assets are structured in the most appropriate way to minimise your tax liability. This factors in things like superannuation, family and discretionary trusts, private and public companies as well as individual and joint business names.
A financial planner can also provide advice around negative gearing and salary sacrificing.
3: Managing your debt
Australians are among the most indebted people in the world and many don’t know how to break free.
A financial planner can help you build a strategy for managing your debt, whether it be in any of the following forms:
- Mortgage debt
- Business debt
- Education loans (HECS)
- Investment loans
- Credit card debt
- Personal loans
- Self-managed super fund (SMSF) loans
A financial planner can also help educate you on the difference between ‘good’ and ‘bad’ debt and explain why ‘good’ debt can actually help you in the long run.
4: Retirement planning
The thought of retirement often induces a lot of fear.
You’re already working so hard to keep on top of your financial obligations today, how could you continue to provide for your family and enjoy your lifestyle without a working wage to rely on?
With expert help from a financial planner, you can put a plan in place that will position you for independence and retirement, whilst securing your family’s future.
Retirement might feel a while away, but the sooner you start preparing the better off you’ll be.
A financial planner can help to define ‘life after work’, and build a plan to get there.
5: Strategic estate planning
When you think about the legacy you want to leave, what does it look like?
A financial planner can give advice on how to make sure you can continue to protect and provide for your loved ones, even when you’re gone.
Relationship dynamics and tax implications can make this process complex, but with the right advice you can reach an outcome that satisfies you and your family.
While many people have typically been casual about the estate planning conversation, or avoided it entirely, it has never been more important to get your house in order.
6: Financial education
For most people, financial concepts and strategies can be difficult to grasp.
A financial planner has the ability to teach you – and importantly, your children – the basics, thereby setting your entire family up for a strong financial future.
In the event you pass away, your children (or other close family members) will likely need to arrange the transfer of your wealth and understand the impact on each of them personally.
Your financial planner can facilitate this process.
7: Connecting you with experts
Financial planners are often well connected with other professionals who can help you secure your future, such as accountants, solicitors and mortgage brokers.
The team at Heard Financial is experienced at bringing all of those specialists together to help you develop a strong plan, which factors in everything mentioned in this article.
For a no obligation discussion about your financial planning needs, contact us today.
This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information.
Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.