Updated: May 21, 2018
Our CEO, Mr Joshua Day gives his insight into why you should have a financial planner in your life. Over the years, Joshua has seen the undeniable difference in people who have sought financial advice, to those who have not. The fantastic results that have been obtained by his clients are a testament to that claim.
1. To give you clarity about spending.
It’s not uncommon for a client who is a new attending to lament that they spent way too much in training and is now not able to enjoy their new attending salary as much as they had dreamed they would. A financial planner will help you focus on spending and saving so that you can spend purposefully rather than emotionally. We will, for example, run projections of how extra spending today may affect your net worth 10 years from now. Seeing your future in black and white will help you make better decisions in training.
2. To help you set and adjust your goals.
Part of the financial planning process involves discussing and deciding on your priorities while setting future goals. Planning forces you to reflect and articulate your dreams, set goals, and map out a path to achieve them while considering probabilities and roadblocks. Assumptions about the future play a key role in your plans; when those assumptions change, we work together to update your roadmap.
3. To keep you away from obtaining products you may not need.
How many doctors have bought overpriced life insurance because it sounded like a great deal? As financial advisors, our job is to protect you from making bad decisions. As Carl Richards, the talented financial planning illustrator and author of The Behavior Gap and The One Page Financial Plan put it, your financial planner stands between “YOU” and “STUPID”.
4. To help you invest appropriately.
If you qualify to contribute to a retirement plan at work, your financial planner will review your investment choices and help you build an appropriate portfolio. Starting out with a suitable portfolio while you’re young will boost your retirement savings. Your planner will also help you determine other choices that are appropriate for your tax bracket, such as super contributions.
5. To educate you about finances.
You’re busy enough already. Do you have the time and desire to master everything you need to know about personal finance? Do you know what you don’t know? You can figure a lot out by reading books and finance blogs, or you can learn only what is relevant to you and leave off the extraneous material. On the other hand, if you really do want to study finance, I’ll be happy to recommend a few books to begin your education.
6. To help you make big decisions.
Above all, what we do boils down to ensuring our clients have the financial clarity to make good decisions. When you know how buying a house for example, can dramatically enhance your overall wealth position, it’s easier to make that decision. The earlier you have clarity about how much you need to earn and save to retire by 50, the more time you’ll have to work toward that goal. On the other hand, if you’re 40 and decide to retire in 10 years, you might just wear yourself out getting there.
7. To connect you with the right professionals.
As a financial planner, I have access to a private network of other professionals across Australia, such as; local lawyers, real estate agents, insurance agents, and so forth. When a remote client needs a specific professional, I simply reach out to my network, knowing they will steer my clients in the right direction.
8. To help you make career decisions.
One thing people don’t know about me is that I review every contract under consideration. While I’m not a life coach, my contract review helps clients understand the quality of the benefits package and the tax effects of various provisions.
9. To keep you from making emotional decisions.
As I said recently To a client who wanted to sell a property after only two years of owning it, emotions and finances are like petrol and a lit match. You can blow up your finances with one irrational decision, whether it is due to exuberance or fear. A big part of our job is to be the voice of reason when clients want to panic sell in a market correction, accept an offer that is “too good to be true”, and invest in beachfront property in Merewether.
10. Because you get our personal and professional care.
As financial planners, we prefer to focus on prevention of adverse financial decisions, and the overall financial health of our client, rather than waiting until you need an urgent restructure.. While a good financial planner can help “heal” you of your financial worries at any point in your career, the earlier you see one, the more fiscally fit you will be over the course of your life.