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JANUARY

Managing Your Finances:

Here Are 6 Key Questions You Need to Ask Yourself

We are all guilty of failing to keep a close eye on our finances from time to time and the job of an independent financial advisor is to help you identify and rectify any shortfalls. Every client is unique, but there are a number of common themes to any discussion, which helps us get to the root of what people really need.

1. What are your personal and financial aspirations?

These goals don’t need to have a monetary value necessarily, but they should be things that you know will require some form of plan to achieve. Ideally you’ll have a few, ranging across your lifetime, including ideas for a comfortable retirement (travelling, downsizing etc), changes in employment (such as opening your own business) or saving for a particular purpose.

2. What are you currently doing to achieve those goals?

Do you know what is needed? The first step to achieving any goal, financial or otherwise, is to know the commitment it requires. There is no point setting an unrealistic target, or even picking something far too easy to achieve.

3. What is your current personal financial position?

You should do this on an annual basis. If you haven’t done this in a long time then today is the day!

4. How do your ‘investments’ need to perform in order for you to reach your targets?

Most people have some form of investment assets, even if they don’t realise it. Deposit accounts, property and pensions are all part of your portfolio. Too often people hold investments without any real idea of what returns they are getting and what they should be getting. Only by deciding what your investments are for – i.e. to realise your goals – can you benchmark them and determine if they are appropriate to you.

5. How well protected are you and your family if you were to die or fall ill?

While illness or death will impact any financial plan, it is important to ensure it doesn’t have a more serious financial impact. Knowing what you and your family would need to maintain a particular standard of living is one of the most important things you can learn and will provide you with peace of mind.

6. Do you have your financial affairs structured in the most efficient manner?

Once you decide that you have the willingness, capacity and discipline to start planning for your future, saving in the most tax efficient manner will significantly improve your chances of reaching any financial target. Similarly, managing your assets while you are alive and passing them on to your next of kin should be done as cost effectively as possible. All of this needs planning, much of it years in advance. It’s never too early to start.

Perhaps you can ask, and answer, all those questions yourself.

However most people find it useful to work with an independent, objective advisor whose role is to walk with you towards achieving your financial goals, offering assistance, advice and recommendations as appropriate. A good advisor is not there to simply sell you financial products. On the contrary, a good advisor’s job is first and foremost to make sure you have a financial plan that works for you. Our experience and knowledge is invaluable in guiding clients to their personal and financial aspirations. A no-charge initial meeting will allow us to explain what we can do for you in more detail. We look forward to working with you.