What are the services offered by Financial Planners?

Financial planning means more than the management of money.  A financial planner will provide professional advice across multiple domains of wealth, protection, and future security for the client’s financial well-being. The role of the financial planner goes way beyond just investment advice. Just as a tax agent can simplify compliance, a trusted financial planner in South Melbourne can help chart long-term strategies to secure your financial future.

A financial planner may assist in numerous areas to improve a client’s financial well-being, while minimizing risks and ensuring long-term financial viability.  This article provides a general overview of the different kinds of services offered by a financial planner.

The Importance of Financial Planning

Financial planning is vital for long-term security, stability, and personal goals. A financial planner provides an outline of income, expenses, investments, and savings that ensures that someone is making a financial decision for both their current needs and their future goals. One of the most important components of financial planning is goal setting and prioritising.

Financial planning simply puts control between the uncertainties of life and individuals, while turning their aspirations into attainable goals toward their long-term financial well-being. Financial planning provides an individual with confidence and peace of mind. When an individual understands where their money is being spent and how to make their money work for them, they are more prepared for any unexpected events, fluctuations in the market, or changes in their life.

Services offered by a Financial Planner

Various services are offered by a financial planner. These services are:

Investment Advice and Portfolio Management

Financial planners evaluate the risk tolerance, time horizon, and wealth-building objectives associated with the client. Financial planners would manage portfolios to review the investment options that were recommended in the first place, ensuring, as best as possible, that the client and their portfolio are aligned with their financial goals and objectives. Regular monitoring and adjustment, or ‘rebalancing’ of portfolios, is also done, so investment decisions fully align with the change in market conditions.

Retirement Planning

Financial planners offer their clients, which is worthwhile, retirement planning. Many people underestimate how much income they need to retire comfortably. Planners will calculate the likely expenses, recommend superannuation strategies, and suggest further investments to enable you to reach your goal of financial independence.

Tax Planning Strategies

Tax planning strategies could involve structuring the investment to mitigate tax exportation, using superannuation contributions, or using the timing of when to sell an asset. By reducing future tax liability, it enables more income to be reinvested in wealth building and future opportunities.

Guidance on Estate Planning

Financial planners help with estate planning by collaborating with legal professionals to structure wills, trusts, and arrangements for beneficiaries. They will ensure the assets are conveyed in accordance with individual desires while minimising the risk of legal disputes and taxes on the estate. Organising a proper estate plan will also assist with protecting family members and ensuring wealth is passed from one generation to the next.

Debt and Cash Flow Management

Financial planners help to structure debt sustainably by consolidating higher-interest loans or implementing appropriate repayment strategies to pay the debt off faster. They also design cash flow management systems with a balanced approach to a client’s immediate lifestyle needs, while directing savings for long-term goals.

Conclusion

Financial planners offer a vast array of services, including investment, retirement, risk management, tax planning, and estate planning. The value of a financial planner is more than the service they offer, but rather creating a custom plan that outlines wealth objectives today and tomorrow. Financial planners serve as trusted partners who help individuals and businesses achieve their financial goals.