Gain insights on the Seven Myths in Financial Planning by Adriaan Jordaan in collaboration with FPIMyMoney123™
When it comes to the subject of financial planning people often have the wrong idea whether they confuse financial planners with accountants or they assume that the financial planning process is only helpful to those who have money to invest there are numerous misconceptions unfortunately these misconceptions prevent those would benefit from financial planning
From ever considering the service in an effort to clear that up here are seven common misconceptions people make about financial planning the first one is financial planning is the same as investment planning financial planning is free financial planning takes too much time or i am too busy i have an accountant advisor or broker that does financial planning for
Me i don’t need a formal financial plan if i always make good financial decisions i look after my own finances and lastly i already have everything in place in today’s modern world there is an abundance of financial resources and advice available out there it makes it difficult to know which information you can trust and when you pair that up with the fact that
Traditionally the financial industry has bombarded the general public with untold truths lies and misconceptions over the last several decades it’s difficult to also know who to trust let’s now discuss these misconceptions in a bit more detail the word investing has become interchangeable with financial planning in many people’s minds a good financial planner will
Also help you with other key areas such as cash flow management estate planning risk planning and tax it is important to have a plan in place before proceeding with investing or buying of any financial product investing will affect the other areas of your financial plan but that doesn’t mean that all you’ll get out of the financial plan is just market advice
Think of a planner as a coach designing a financial game plan and seeing that is properly executed often with the help of outside specialists such as accountants fiduciary specialists investment specialists all acting in the best interest of the client a lot of people believe that financial planning is free and they don’t need to pay for it remember there’s
No free lunch there are a few ways in which financial planners can get paid the two most popular ways are through commission when an insurance product is implemented even some investment products but i’ll be very careful about those all fees are paid from your investment portfolio we believe that the most transparent way is through professional fees which is
Agreed upon on an annual basis financial planning is a professional service and it should be compensated like any other professional service do you understand the way that your financial planner gets paid and how much in this day and age we’re all pretty busy we’re busy at work we’re busy at home busy with our families or our shopping we constantly delay the
Most important decisions that need to be made you work hard for your money make sure that you take the time to put it to good use financial planning can certainly be time consuming however if done correctly it could save you a lot of time in the future thanks to technology is now quicker and easier to do the number crunching bit and a good financial planner can
Spend more time helping you get more out of life the main purpose of a financial planner is to help you crystallize your goals and effectively manage your personal finances financial planning is not synonymous with investments insurance or even tax we believe that a financial planner should work closely with your accountant they have two very different roles
To play in your financial life and should be used to complement each other if you already have someone doing financial planning for you that’s great you now have a higher probability of reaching your goals make sure that you get a comprehensive financial plan that focuses on tax cash flow management estate planning risk planning investment planning and much much
More while he may make good financial decisions a series of choices made without clearly thought out without a clearly thought out plan does not constitute financial planning it’s almost impossible to balance retirement planning investing cash flow tax considerations estate planning and insurance needs without a blueprint some people think that as long as they
Have sufficient life insurance for example the family will automatically automatically be provided for if anything should happen today but life insurance is just one part of estate planning and is often used in conjunction with other tools to provide you with your family needs too many people think that financial planning is simply about buying a product such
As insurance as a magic fix for them only problems in reality financial planning is complex and just doing your best to make small choices when faced with financial decisions isn’t enough you need to know how those decisions are going to play out down the line it is true that anyone can look after their own financial future but do you have the time to make it a
Priority and develop a strong knowledge of the industry many people who seek the support of a financial planner have the aptitude to look after majority of their financial affairs but few have the time and they would much rather do other things they enjoy more you also need to maintain an objective approach keep your emotions out of the decision-making process
That is when most people let themselves down in the long run working with a financial planner means that you grow your team you get support and you free up your own time don’t let misconceptions about financial planning stop you from achieving your dreams to get the most out of your finances speak to a financial planner whose job it is to do all the research and
Planning freeing up your most valuable resource your time so that you can do the things that you love you might be thinking that your insurance is in order and you’re contributing the maximum you can towards a retirement annuity your financial life is not just about one goal or another it’s about how you can achieve optimization with all your goals put together
Buy an insurance policy or investing in an asset is not financial planning what if you could pay off your home loan faster without compromising your current lifestyle or you might discover that you can reach your retirement goal easily and investing into a retirement fund is perhaps not the best investment vehicle to use don’t start your financial planning journey
With just investments or insurance without having a plan understand how it fits in the overall scheme by things these misconceptions can prevent you from realizing the potential advantages that good financial planning provides don’t let outdated perceptions or fears keep you from working with someone financial planning is a systematic and long-term process there
Is no better time than now to take the appropriate steps towards improving your financial life
Transcribed from video
Seven Myths in Financial Planning by Adriaan Jordaan in collaboration with FPIMyMoney123™ By The Financial Planning Institute of Southern AfricaliveBroadcastDetails{isLiveNowfalsestartTimestamp2021-10-07T123025+0000endTimestamp2021-10-07T124205+0000}
