In previous articles we’ve looked at the value of obtaining good financial advice and how to choose a financial planner. In today’s article we’ll discuss what a financial planner does and give you an overview of what to expect when you meet with a financial planner.
What does a financial planner do?
The Financial Planning Association provides the following definition of financial planning:
Financial planning is the process of developing strategies to help you manage your financial affairs so you can build wealth, enjoy life and achieve financial security.
A financial planner uses a 6-step process to provide financial advice. The process, as defined by the FPA is as follows:
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Gather your financial information |
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Identify your goals |
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3. |
Identify financial issues |
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Prepare your financial plan (called a Statement of Advice) |
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Implement the recommendations based on your financial plan |
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Review and revise the plan at regular intervals, or when circumstances change. |
(Source – Financial Planning Association)
How Impact Financial Coaching Uses the 6-Step Process
When you meet with us, depending on the scope of advice you require, we usually spend one or two meetings helping you define your future goals and objectives and understanding your current financial situation. Once we know where you are today and where you want to be in the future, we’ll look at any potential issues or problems that could stop or hinder you from achieving your goals and we’ll suggest strategies that can help you achieve your goals. We’ll provide you with specific, written recommendations in a personalised financial plan (Statement of Advice).
Once you’re comfortable with our recommendations, we’ll help you implement them. Usually this involves helping you with paperwork and referring you to other professionals if necessary for legal or taxation advice.
Importantly, this is not the end of the process, but just the beginning and it’s important to ensure you remain on track. The captain of a cruise ship constantly checks their location to make sure they’re heading in the right direction and it’s the same with your financial journey. Through our Premium ongoing service package, we’ll meet with your regularly to ensure that as your goals and objectives change, so does your financial plan.
What Products Can We Use
Our financial services guide provides a list of the range of products we recommend. They can be broadly summarised in two categories:
- Insurance products – Life insurance, trauma insurance, income protection and total and permanent disability insurance are all products that we recommend to some clients. These clients protect our clients in the event they need to make a claim. If you’re unable to work due to sickness or injury, it’s comforting to know you have insurance that provides you with a source of income.
- Investment products – these are investments such as managed funds, superannuation, account based pensions and insurance bonds. These are the vehicles we use to help you save and invest for the future.
The Most Valuable Product
These products by themselves don’t provide much value. It’s a bit like giving an expensive sports car to someone who has never driven before – they may eventually work out how to use it, but they’ll make some mistakes along the way.
I believe the most valuable product we can provide is our strategic advice. Through our years of experience, and the technical resources available to us, we’re confident we’re able to provide value to your through personalised advice. Sometimes we won’t need to recommend a specific product, but we’ll suggest a particular strategy that provides a tangible benefit to you.
Our clients tell us that they value the advice that we provide and they appreciate having someone they can call to talk about important financial decisions.
Introducing the Wealth Snapshot
In tomorrow’s article we’ll explore a concept called the Wealth Snapshot. It’s a process we use to better help you understand whether you have a strong financial plan.
Please remember, these articles can only be general in nature. If you require specific financial advice, please contact us on 08 8364 0066 to arrange a complimentary, no-obligation appointment.
Impact Financial Coaching is a financial planning business in Adelaide, South Australia.
Important information
This article contains financial product advice of a general nature only and is not intended to constitute personal advice. It does not take into account your particular investment objectives, financial situation or needs. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in the publication.
Financial Wisdom Advisers are Authorised Representatives of Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.
