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When should I think about financial planning in Australia?

14 June 2022 Clinton Comments Off

Financial planning can make a world of difference to those who are unsure of how to manage their money. Even for those who are knowledgeable in finance, hiring a financial planner can ensure that your money is managed effectively to secure yourself for the future. With current economic problems such as the increasing cost of living and interest rates, many Australians are struggling to successfully manage their wealth. With these issues only increasing, it’s no wonder that many people are unable to make clear financial plans for their future. Below we outline when the best time is to start to think about financial planning.

Financial planning for life events
Many people will only think of financial planners when they are making large financial decisions, such as planning for retirement or coming into an inheritance. The truth is that meeting with a financial advisor as a young person can be incredibly helpful. Not only can a financial advisor help you to organise your finances to meet your needs at present, but they can also help you to plan for the future and organise your cashflow management. The earlier you begin organising your wealth and planning ahead, the better off you will be a few years down the track. If you have started working in a career and earning an income, it’s a great time to begin personal financial planning. Even if you have been working for years, it’s not too late to speak to a financial advisor. There are many big financial events that younger people face in their lives, whether it’s switching jobs, saving for a house, having a baby, or starting a new business. All of these events can benefit from some financial planning and doing so could save you a great deal of time and money. 

Financial insight to get ahead
Perhaps you already have an idea of how to manage your money in regard to your next big financial event, or maybe you find the situation confusing and difficult to manage. No matter how you feel about the situation, a financial planner can offer you guidance and support in order to help you make the best decisions possible. Their knowledge and insights may be able to provide you with some options that you haven’t considered. 

There are two main areas that a financial advisor can assist with. Firstly, they can help to answer the big questions by breaking them down and analysing them. You may be wondering if you have enough money saved to start a viable business, or whether or not you can save enough money to put your kids through university in 5 years’ time. A financial planner can evaluate these objectives and determine whether or not it is a feasible plan. Secondly, a financial planner can weigh up alternative options and test your plan to determine which is the best course of action. If you wanted to purchase a new house in 5 years, wouldn’t you want to know how much money you could have if you waited an extra 3 years? A financial advisor could then perform a risk simulation to determine the best approach to your situation. This provides clients with the confidence that their finances are safe and secure. 

Removing financial stress
If talking to a certified financial planner will reduce some of the stress associated with your financial situation, then it’s definitely worth booking a consultation. If you’re like most people and working 30-50 hours per week, you may not have the time to research, manage your investments, and plan for the future all at the same time. This can lead to financial stress which can make the situation worse. Organising a meeting with a financial advisor can help to remove the stress out of the situation by taking care of the difficult, time-consuming work for you. Getting your finances organised, ensuring family is secure, and making strong financial plans for the future can be empowering. Removing the source of stress and anxiety can make it incredibly worthwhile to work with a financial advisor. 

Financial planning for later in life
As you edge towards the end of your career and progress further towards retirement, it’s important to start thinking about financial planning and ensuring you have enough money to stop working. A financial advisor can help you to analyse your regular expenses and your savings so you can decide on a comfortable amount of money to withdraw each year. A financial advisor can also help you to identify any problems with your retirement plan, ensuring that you are completely set up and not in danger of spending more money than you have. Financial advisors can also help you to organise your estate and plan your will. They can help to keep your will up to date and adequately plan for your estate to ensure the financial wellbeing of your family into the future. Around 40% of Australians die each year without a will, so planning this with a financial advisor will guarantee that your wealth is divided exactly how you want it. 

Rethink your perceptions of financial planning
Speaking to a financial planner does not need to involve regular, recurring meetings as many people are led to believe. You may only need a few sessions to discuss your options and select a course of action that is right for you. Not everyone needs to maintain an ongoing monthly relationship with a financial planner. However, most people who earn an income could benefit from some financial planning and analysis, even if it’s just a few short consultations and an occasional check in. 

If you still have questions about your finances, or you’re still wondering whether or not you should book a session with a financial planner, contact the professionals at StrategyOne Advice Network. Our financial planners in North Sydney utilise their extensive knowledge and years of experience in the industry to help you get your finances in order no matter what stage of life you’re at. Whether you’re looking at buying your first home, or you want to begin estate planning, our financial advisors are ready to help. Contact us today for more information.