Financial planning is arguably the most important component in building your wealth. That being said, despite it being essential, there can often be confusion as to what it really is and how it works.
With this in mind, we’ve put together this article to clear up any myths surrounding financial planning, and give you what you need most – the facts.
1. It’s best executed with the help of a modern wealth manager
The first fact of financial planning, is that to have the best chance of achieving a successful financial outcome, you need to find a modern wealth manager.
Having the expert advice of a wealth manager is key to devising the right approach to all your future ambitions and goals for your financial journey.
Not only will your adviser have the skill and knowledge to help you build your wealth, but they can also offer a range of professional services to significantly improve your planning process.
This can include things such as full management of your investments, and the use of advanced financial planning tools.
2. There’s no ‘one plan suits all’ – you need unique guidance
Another misconception about financial planning is that there’s one ideal approach that’s a perfect fit for every individual.
The truth is, each person has a different financial circumstance, as well as their own unique goals – so naturally, your financial plan should be just as unique!
This is, again, why an adviser is crucial in your process. Your adviser will give you unique guidance that’s tailored specifically to your financial circumstance, which they will be sure to discuss and evaluate with you continually.
This ensures your approach is best-suited to growing your wealth in accordance with your current financial status.
They’ll be sure to learn every aspect of your current circumstance, including any challenges or concerns you might be facing. This will allow them to further develop the best approach for you, based on the accurate and unique information they’ve gathered.
3. There are various ways to optimise your investments
Investments are a vital part of building your wealth effectively, but many might be under the assumption there’s only a few ways to successfully invest your money. This is not true. In fact, it’s the exact opposite. This is something your adviser will certainly explore with you.
Your wealth manager will help you optimise your investments, so you’re making use of the right portfolios that are suited to your current circumstance, as well as the goals you’ve laid out in your plan.
For instance, this can include finding portfolios that give the right balance of risk and potential reward, that align best with your financial status.
Not only this, but your adviser can also manage your investments for you, so you aren’t burdened with the complex tasks such as – entering and exiting markets, monitoring investment performance, etc.
4. The more advice you receive, the better
Advice is essential for your financial planning, but another important fact is that the more advice you receive – from an expert wealth manager, of course – the more effective your plan will be.
Your financial circumstance is always vulnerable to change, due to a variety of potential factors – career changes, lifestyle changes, evolving economy, etc. – which means your initial plan might not always be optimal as your circumstance develops.
Therefore, your adviser can help you continuously review your plan, and ensure it consistently aligns with your current circumstance, to ensure the best suited approach to building your wealth, at all times.
Now you know the facts of financial planning, and have uncovered the myths, are you ready to find your modern wealth manager and begin devising your own unique approach for the future?
Please note, the value of your investments can go down as well as up.