Ask the right questions to prosper

Philosophers and playwrights over the centuries have explored the maxim “Know thyself”. This is one of the hardest things to do.

From a financial planning perspective, our goals change and events beyond our control, such as the Covid-19 outbreak, take place.

These throw our perspectives into disarray, highlighting why a financial adviser is needed — to take the emotion out of your financial planning decision-making.

Financial planning is a lifelong journey — it is crucial not to think of a financial plan as static, with one set of results.

See it as a multifaceted, complex set of questions and needs that should be distilled into a holistic plan.

Once set up, this plan needs to be revisited regularly, at least once a year or as circumstances change, to ensure it is implementable, achievable and still the best way to meet your needs.

It is imperative to start your financial planning journey to financial freedom with an open mindset.

Everyone’s interpretation of financial freedom is personal to them, which means every financial plan will be unique.

However, there are some fundamental questions that your adviser will likely ask to create or update a plan that works for you:

What are your financial goals?

One of the greatest challenges to a good financial plan is an unrealistic goal. A financial goal should be needs-based, such as wanting to retire at a certain age, with a specific income target, or being prepared for changing circumstances.

Your financial planner can explore these goals with you and aim for a plan that considers and co-ordinates all the factors involved in reaching your goals.

Financial goals also change as your lifestyle changes.

From entering the workplace to having several dependants in the middle of your career, to retirement; each change needs to be planned for.

We may also have to contend with factors such as retrenchments, pandemics, sabbaticals or inheritances, which could substantially change the implementation of our financial plans.

What is your relationship with money?

We all have a special relationship with money. Some of us hoard it, while others are risk-takers who may regularly over-indulge in impulse buying.

The next clearance sale could derail you from achieving your goals, so you need to stay disciplined if you want your relationship to last.

What is your experience of financial planning?

What brought you to the point of needing to engage with your financial adviser, and what do you hope to achieve from the discussion?

Discuss your present plan, the journey you’ve experienced so far, and what you would like to change.

Do you have a budget?

Budgets are important to understand — and manage — your cash-flow.

Your budget should also be balanced to include your future cashflow needs, and plans will be set up to ensure these are sustainable and tackled appropriately.

It is imperative to understand what you need to invest today, to achieve your dreams of tomorrow.

Bring along any information you may deem relevant to the questions your financial adviser may ask.

By understanding your responsibility, being prepared and getting the right expertise, you will be well on your way to meeting your goals.