What is the benefit of a financial planner?

What is the benefit of a financial planner?

I’ve been told I should see a financial planner but I can’t see the benefit of it. My husband and I only earn around $100,000.00p.a, we have 2 small children in primary school and we are paying off a mortgage. We really don’t have that much money left over to invest in anything. Is it worthwhile paying for advice?

This question comes up a lot and is very relevant to the modern day financial planner (formally referred to as a financial adviser) in that the way we as financial planners work is to help people make sense of what is going on financially, and providing idea’s for strategies that can improve a client’s financial situation. At Sound Life it is our drive and passion to help clients overcome “financial burdens” that can sometimes prevent you living the life you want, instead we help you live the life you desire, free from financial concern.

But….back to the question. This scenario is common to many, a couple, working, raising children with all the added costs that it involves and paying off a mortgage leaving most feeling like there is nothing left over to save. This is exactly where a financial planner can help. They have the tools and knowledge to help you better understand what is going on, help you to make the most of the working years and provide a reassuring vision that it’s all going to be ok!

Does this sound too wishy/washy still? Let me break it down…..a financial planner may help you to understand sticking to a realistic regular spending budget, oh no, not the word budget, however after paying interest on your mortgage and sticking to the “budget” you could have some funds left over. This is called your surplus cashflow. Once you’ve established this you can discuss what to do with the surplus. Do you put it into you mortgage to pay it off quicker? Do you contribute it to super through salary sacrifice? Do you spend it by paying interest on an investment property? Or spend it on a holiday? Can you do all of these things? The possibilities are endless once a financial planner has helped you to understand the pros and cons of various strategies.

On top of this, a financial planner can help you to understand how your super is invested. A lot of people do not really understand what their superannuation investments are nor the risk taken on board with relation to these investments and what the expected outcome in returns are. There could actually be more suitable investments within the super fund you are invested in that better meet your lifestyle objectives, investment timeframes and tolerance for volatility…..what does all that mean? Your financial planner can make sense of it for you and this is the kind of conversation that can be extremely useful to give you a better understanding of what you have and what you are doing. These small conversations may be all you need to have reassurance and confidents in your financial situation.

Other things that you may not realise a financial planner can help with are doing financial projections to help you understand what your current expected financial destination is. Will you have your mortgage paid off by retirement? How much will you be able to spend in retirement? Will you afford holidays during retirement? Understanding these questions can be very satisfying as people are often in a better financial position than they realise when looking at the bigger picture. A financial plan can then show you the expected outcome when adopting different financial strategies and the benefits associated with them, based on the things you want out of life. This is pure financial planning!

Again…..back to the question! This particular time in an adult’s life is often the hardest time financially. Getting some advice now from a financial planner can lead to a big difference in your future financial outcomes. Let time work to increase your wealth and let the information you’ll receive from a financial planner at Sound Life Financial Services reassure you that life is looking good and you are on track to reaching your financial goals!

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Sound Life & Superannuation Agencies Pty Ltd trading as Sound Life Financial Services are
Corporate Authorised Representatives of Synchronised Business Services Pty Ltd
ABN: 33 007 207 650 trading as SYNCHRON
Principal address: Level 1, 65 Palmerston Crescent, South Melbourne Vic 3051
Australian Financial Services License Number: 243 313