This process involves gathering relevant financial information, setting investment goals and examining your current financial position. From there we formulate a strategy on how to meet your investment goals.
During a comprehensive financial-needs analysis, we assess your financial position at death, in case of disability, trauma and retirement. Based on the analysis we provide solutions from our network of product providers.
Frequently Asked Questions
Are all financial planners certified?
In short, the answer is no. Many people think that all financial planners are certified, but this is not the case. What separates a Certified Financial Planner professional from other financial advisors is that CFP professionals are trained and specialised in six areas of speciality in order to provide a comprehensive approach to financial planning. These are:
- Estate Planning
What are some of the reasons why a comprehensive financial plan is beneficial:
- It defines your financial goals: Setting out clear financial goals is a key part of financial planning - it sets the direction.
- Are your goals realistic, particularly around your timeline? After taking a look at the goals, one can assess how you can get there — how much to save and what types of investments to make. “It’s usually not that the goal is not attainable, it’s that the timeline is not attainable,” Many goals, such as saving for retirement, a mortgage or a child's college education and paying off debt, take years to accomplish.
- It brings your spending in line with your goals. Many people do not realise how much money they spend on things monthly. It comes as a surprise to most, once an expense analysis is done, as to how much they can actually afford to save instead of spending unnecessarily.
- It highlights ‘money mistakes’ you’re currently making. It is easy to say: “I’m only paying 17% on interest to the bank on my credit card”. However, not even stop to consider if you are making anything close to 17% on investment returns.
- It allows you to measure your progress on your goals. If there is a plan, you will be able to monitor your progress according to the plan in order to evaluate whether you are on target or not.
- It will help you find new ways to maximize your money. There are many ways to save or make money, many ways which we have perhaps not considered. Allowing financial experts to review your financial picture, might reveal these opportunities to you.
- It will help you identify risks you hadn’t thought of. Risk capacity is a large part of a financial plan. It isn’t always a glamorous topic of discussion, but it is necessary to look at. These are things like: “What is your risk of becoming disabled and being unable to support yourself or your family, or dying early and saddling your family with an unmanageable mortgage payment?”
What is the role of life insurance in financial planning?
To a large degree, financial planning involves considering ‘what if’ events and in this case of life insurance, you’re preparing for ‘what if’ you or a loved one passes away. It is an important tool when it comes to making sure you and your family are financially protected.
When life insurance is taken, should you pass away, your loved ones will be able to continue living a similar lifestyle. It can also provide money to cover:
- Funeral expenses
- Pay down existing debt
- Provide a temporary financial cushion, allowing your family time to grieve
- When the estate is large, it can also provide liquidity to cover estate taxes, so that assets do not have to be sold in an untimely manner.
How much does life insurance cost?
This will depend on your specific financial situation and priorities. Premiums (monthly, quarterly or annually) are paid regularly to a life insurance company. At the time of your death, they will then pay a lump sum cash benefit to your beneficiaries.