Financial planning - the road to your future
LIFE is like a highway or road you may have already travelled. It’s rarely a continuous straight stretch without having many twists and turns, humps and bumps and even the dreaded pot hole which we are all quite accustomed to. Smooth surfaces don’t come as a guarantee as we make our journey through life and more than likely we will all encounter the same obstacles along the way.
Most of our significant life goals, such as retirement, putting a child through college, marriage or buying a house can be found on that journey and these events can heavily impact on our finances. Having a financial plan in place will ensure you are ready to deal with whatever life brings you and it will help you achieve those goals. It also makes sure you are prepared for the expected and equally the unexpected.
There are many factors to consider when analysing your current financial situation and planning for the future. Reviewing savings, investments, taxes and cash flows, and attempting to align them with your goals can be time consuming and daunting. Ultimately, you are responsible for your own finances, but it is important to ask yourself if you have the time and expertise to deal with all your financial matters - many people will postpone making important financial decisions because they lack confidence, and feel they aren’t fully informed.
A professional financial planner will offer an expert, objective opinion, and will analyse your current financial situation to prepare a comprehensive financial plan aligned with your goals and objectives. Having a plan in place will provide you with peace of mind, and a greater sense of control over your finances
Working with a professional will help you determine what your financial goals really are, and whether those goals are achievable. A comprehensive financial plan can reveal opportunities to make or save money that you may not have previously considered. By allocating income and investments effectively, you can avail of significant tax savings and increase your overall wealth.
A financial planner will also be able to identify risks that you might not have previously considered, and what impact they could have on you, your family or indeed your business partners and associates. Serious illness, death or disability could place extreme strain on your finances, but those risks can be minimised with appropriate cover. Knowing that your family will be protected in the event of a tragedy provides peace of mind.
People retiring today are living longer and fuller lives than ever before. A financial plan will help determine when you can retire, and what action needs to be taken to achieve your retirement goals and enable you to maintain your current lifestyle and enjoy retirement.
The Planning Process
There are 6 steps involved in creating a financial plan: 1) Initial Meeting: To discuss the financial planning process, and outline the procedure. 2) Gathering Information: To correctly establish an overall picture of your finances, goals (short, medium and long term), and attitude to risk. 3) Analysis and Evaluation: Once all necessary information has been gathered, it will be analysed in order to fully understand how your current finances can be optimized to achieve your objectives. This process includes determining how well investments match up to your risk profile. 4) Presentation of Financial Plan: Once all the information has been reviewed a detailed financial plan is prepared which outlines recommendations based your objectives and information provided. 5) Implementation: When the plan has been agreed the proposed changes and recommendations need to be actioned on your behalf. 6) On-going Review: In order to adapt to changing circumstances, and ensure the strategy continues to be relevant, a structured review should be put in place.
At One Finance our advisors are Certified Financial Planners® and have the knowledge and experience required to help you develop a clear understanding of your current situation, and future needs. To find out more about the benefits of having a financial plan contact us at www.onefinance.ie or call 042-9352287 to make an appointment.