Why you may need a Financial Planner

The misconception of Financial Planners

There have been many misconceptions about financial planners and what they do. Most assume that financial planners are only for the wealthy to afford and they mostly advise on retirement, superannuation and the stock market. 

What does a Financial Planner do?

Broadly, a financial planner helps people where they are right now, to help them with their financial challenges and work out where their clients want to be financially in the future. 

A financial planner will look at but not be limited to financials, superannuation, debt, insurance and many other areas that will help the client reach their goal. As FPA describes “A CERTIFIED FINANCIAL PLANNER® or CFP® professional is internationally recognised for having the highest education and ethical standards in financial planning.”

Example 1 :

For an elderly couple who are retirees need income, the financial planner may can find the best investments that can help them to generate cash flow and how can they plan now to set up a positive cash flow in the coming retirement years. 

Example 2 :

As interest rates rise, home loan repayments will also rise. A financial planner may advise the client to repay a little more to reduce the rising cost of repayments or top up your offset account and keep a reserve in there to have some form of a buffer to manage those increases in interest repayments.

If you would like to find out more about investing, our friend Ray Ong, a Certified Financial Planner has created a podcast, a beginners guide to investing here

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