Financial planning consists of a financial plan document pertains a set of financial instructions (strategies) in place so you can in time achieve your ultimate goal of financial freedom.
The Ultimate Goal – Financial Freedom
Many Australians believe the ultimate goal is to own your home but this is simply not enough. The ultimate goal for you should also involve you accumulating a sufficient level of assets over time that will simply give you ‘the choice’ to either work or not to work. This is called Financial Freedom and should be the ultimate long-term objective for all working Australians.
The Financial Plan
A financial plan is designed to assess your current personal and financial situation and to give you advice on how you can build wealth, save tax and have the opportunity to retire when you would like to retire. In addition, whilst wealth creation is important, wealth protection and estate planning is also an important component to your financial plan. A Financial plan should include;
- Assessment of your Current Personal & Financial Position
- Provide Wealth Creation Advice (i.e. buy an investment property, pay down your home loan, build a share portfolio, reduce your tax, superannuation advice and retirement planning).
- Planning for Retirement (i.e. includes wealth creation, salary sacrificing, transition to retirement).
- Provide Wealth Protection – A protection measure in place to ensure your financial plan is not affected by sickness, injury or death.
- Estate Planning – Providing your family full protection in place should an unforeseen event occur.
Too young for Financial Advice?
There is a misconception in the marketplace that financial planning is mainly applicable to the more mature individuals or those that are planning to retire. In fact, it is the more mature individuals/couples (age 50 and more) that actually start realizing that they may not have enough assets to fund their future retirement and therefore act on seeking financial advice.
The most important time for financial planning advice is actually when you are younger and as a starting point have purchased your first home. One of the most important first wealth creation strategies you can implement is ‘debt reduction’, as this strategy will fast track the repayment of your loan and will give you the ability to buy your first investment property. In addition, having the correct superannuation plan, starting a small share portfolio will also add value to your long term wealth position.
So irrespective of what stage you are in your life, the quicker you align yourself with a financial adviser or your financial coach, the quicker you will be able to achieve your long term wealth creation objectives.
Having a Financial Coach
Building wealth is a long term proposition and due to the nature of our economic landscape and changing tax laws it is important that you receive ongoing professional advice to these changing conditions.
A financial adviser acts as your ‘financial coach’, a professional that can guide and advise you on a number of wealth creation, tax planning and retirement planning strategies.
As your financial planning adviser, we share with you the journey to your long-term wealth creation and future financial prosperity.
Contact Us
If you would like to receive financial planning advice, please complete our online enquiry form or simply contact the office on 8621 8485.