The goal of any good financial plan is to set you on the path to achieving the lifestyle you require throughout your life.
Most importantly, financial planning is a continuous process – the compass that keeps you on track.
A recent study by Canstar Blue has highlighted how fewer New Zealanders are using a budget year on year. There has been a staggering 38% decrease over just two years in kiwis who said they stick to a budget. Naturally a lack of planning leads to increased financial stress in the household.
Hawke’s Bay has been highlighted in the top three worst regions for feeling the most pressure when it comes to the finances, highlighting just how important it is for everyone to have some form of budget and financial plan.
The report showed that just over a quarter (27%) of New Zealanders are living pay day to pay day and women (30%) are more likely feel financial pressure than men (24%).
Having a financial plan will not only reduce stress but help you achieve realistic goals in your life, providing you with certainty that you are on the right track and not leaving your future (and that of your family’s) to chance.
Financial Planning is not just for the ‘wealthy’!
Traditionally many people think of a Financial Plan as something you do when you have a large investment portfolio.
At Cole Murray, Financial Planning is much more than just getting investment and taxation advice – and everyone can benefit from one. Whether your needs are simple or quite complex, a good financial plan should encompass:
- Savings
- Investments (including KiwiSaver)
- Your income needs
- Complete risk assessment
- Taxation
- Retirement
- Estate planning
- Goal setting & reviews
All of these elements should work together to suit your individual circumstances, goals and needs.
How does it work?
Financial planning will identify the action you, and your Financial Adviser, must take to implement your plan. It should also involve regular reviews so that performance can be monitored and the plan reflects any changes in your needs and circumstances.
The first stage involves information gathering, followed by analysis and recommendations in stage two. In the final stage implementing and reviewing your plan on a regular basis ensures it is keeping pace with your financial needs, and helps keep you motivated to stay on track.
Establishing and defining the client/adviser relationship
The financial adviser should clearly explain or document the services to be provided to you, as well as the financial adviser’s competencies and experience plus define both parties’ responsibilities. The adviser should explain fully how they will be paid and by whom. Both you and the adviser should agree on how long the professional relationship should last and on how decisions will be made.
Interested in getting your own Financial Plan?
Enquire today – you will thank yourself for years to come.
