It’s no surprise that word about financial planning has reached you, considering one in every five working Australians looks for financial advice. But why? What is financial planning, and what does this help you do that many people want access to this service? You’re probably looking to learn this information before you decide whether or not to look for a financial advisor in Sydney, and we’re here to help!
What is financial planning?
Financial planning is the process of creating a financial plan to help you meet your financial goals. Your financial plan can be considered a summary of the money and assets you own, the financial goals you are planning to meet, and strategies to help achieve your target. This plan is created with the intent of helping you, for instance, save enough money for a comfortable retirement, or help you afford your children’s tuition. But of course, how effective the plan depends on how well it is created. This is where a financial advisor’s role comes in handy.
Who is a financial advisor?
A financial advisor is someone who works closely with you to create a financial plan that fits your needs and requirements. They are almost like personal trainers. But while personal trainers help you create a diet plan, workout routines and exercise schedules to help you hit that weight you want, your financial advisor will manage your savings, insurance you need, tax planning and more to meet your financial goals.
And of course, just like fitness plans differ from individual to individual, so do financial plans, and that’s why it’s important to find the right advisor for you. For instance, you might not be a finance expert, and a financial advisor who is ready to educate you to understand how to manage your money better might best suit you. If you think a financial advisor doesn’t understand your needs and circumstances, or simply doesn’t connect with them, don’t hesitate to look for someone who might be more helpful. It also helps to keep in mind to consider any costs associated with contract termination or moving assets being managed by your previous advisor’s company to the new one.
Do you need a financial advisor?
Deciding if you need a financial advisor’s help, like most decisions, depends on you. But some signs might mean you would likely benefit from a financial advisor’s help. Suppose you feel overwhelmed with the financial decisions. In that case, you need to make or feel like you don’t understand finance well enough to manage funds in Australia independently; a financial advisor in Sydney might help.
If you are having trouble devising an estate plan or losing money because of your investment decisions, many financial advisors in Sydney can help with that as well. Making smart investments is especially important to protect your assets from inflation since the value of money stored as cash can decrease due to inflation.
Or perhaps you simply don’t have the time to dedicate to effectively managing your funds, and that’s a good enough reason to get help from a financial advisor.
That’s all we have about the basics of what financial planning is! We hope we were able to help you understand financial planning well enough to more confidently decide on looking for assistance with your funds and assets.
