Financial Advice and Planning

What is financial advice? What is financial planning? We are asked this quite a lot. Truthfully, the scope of services offered by financial advisers are quite broad, but in one sentence, financial advice is: “Advice to deal with modern life”.

LOOKING FOR A FINANCIAL ADVISER?

What is financial advice? What is financial planning? We are asked this quite a lot. Truthfully, the scope of services offered by financial advisers are quite broad, but in one sentence, financial advice is: “Advice to deal with modern life”.

Modern life has three overlays: personal change, legislative change and economic change. How these three entwine is where professional financial advice is important when planning for your goals.

A financial adviser will look at the impact these changes have on you, and offer advice on how to move forward.

What does financial advice look like?

Let’s look at a timeline to show what we mean.

A couple in their early 50s tell their financial advisor that they want to pay off their home loan and retire to North Brisbane in 10 years. Sounds simple but over this period of time there have been the following changes that need to be considered in their retirement plans:

Economic

  • The COVID-19 crisis – this affected the investment returns but also potentially when the couple can retire.
  • Post COVID-19 recovery – did the couple take advantage of the recovery or were they gun shy after the downturn?
  • Interest rate cycle – interest rates have moved greatly over the last 10 years, how was the couple’s plan to repay their home loan affected?

Personal

  • We generally see diverse reasons for change in people’s personal lives, these are some which may have affected our couple:
  • Adult child moving back home – maybe due to injury or divorce. How will this impact the couple’s plans?
  • Divorce – it does happen and a complete reset of goals and strategies would be required.
  • Illness – Did the couple adequately protect their goals? If not, what happens to their retirement?
  • Unexpected funds – inheritances and other sources (lotto) can have significant impacts on goals. Did the couple make the most of these funds?

How our financial planning firm can assist you in achieving your goals

Financial advice shows the drip down effect of these three areas to you specifically and the positive and negative implications of change on your goals. There is constant change in our lives and it is the job of financial planning firms, and your financial adviser, to stay abreast of these changes and change their advice accordingly.

If you would like to discuss your situation and your future goals with a financial advisor from Green Associates, please contact us today.

Make an appointment online or call your local office.