Seven Things a Financial Planner Can Help You With

Seven Things a Financial Planner Can Help You With by Julie Davidson

Whether you're newly married and interested in buying a home, or settled and worried about college for your children or retirement, a financial planner can help. Besides the usual retirement superannuation, a financial planner can help you form a plan to invest, plan for taxes in the future, and plan for financial security.

What is a financial planner?

Unlike a stock broker, who directly invests your money in the stock market, a financial planner devises a plan to help you save money for now and later in life. Their company offers funds and plans to invest your money in, and they charge either a flat rate fee or a percentage to sell you different investment plans.

A good financial planner belongs to the Financial Planning Association of Australia (www.fpa.asn.au) and is fair and upfront about fees, easily accessible and answers your questions. You can usually find a good financial planner by asking friends, family or co-workers, or checking out the FPA website. So, once you find a financial planner, what can he or she help you with?

1) Help You Understand Risk.

Your financial planner will carefully consider your debt, assets and income to assess where you stand and develop a sound financial plan for your requirements. However, you also need to think about the level of risk you want to take and to set aside funds appropriately.

If you want to gain wealth quickly you're going to have to take some risk in losing money and investments due to the nature of the business. Some plans are very low risk when it comes to your losses but they also gain less worth and gain at a slower pace.

A good financial plan will have a balance of risk levels, with some funds in high risk areas such as investing in shares or property and funds in lower risk investments such as a capital gain life insurance policy.

Your financial advisor can also assist you with devising a strategy to alter your risk levels over time so that you're putting more of your money into more secure investments as you acquire wealth.

2) Assess Your Insurance Needs.

A financial planner can be an important key to helping you to assess your insurance needs. No matter how old you are, it's essential to ensure that the ones you love are taken care of in the event of your death or injury. This means making sure you have adequate insurance to cover your needs, such as paying off your mortgage, paying the everyday bills and educating your children, if you have them.

There are many different types of insurance you can purchase, such as total life coverage, disability, trauma and salary continuance. A meeting with a financial planner will help you to assess your debt, your needs and your risk to find an insurance plan that's perfect for you and your loved ones.

3) Avoid Over-Taxation.

If you're dealing with trying to manage superannuation funds, investments, and all of the financial planning factors on your own, you might be taking a hit in the taxation department.

The government has set up a lot of laws to help Australians save through superannuation funds that give tax breaks. However, a good financial plan will have a diverse mixture of investments that expands above and beyond superannuation only.

Your financial planner can help you assess the amount of taxes you'll need to pay and help you to develop the best plan to keep taxes low so the money can stay in your pocket.

4) Retirement Planning.

Waiting until you're ready to retire to take retirement planning into hand is by far the worst thing you can do. The upcoming retirement of the Australian Baby Boomers will double the amount of retired citizens over 65 years.

As Australians are living longer due to good nutrition and better healthcare, this means there will be less in the Age Pension fund to help out in your retirement years.

A financial planner can help you plan for your retirement by helping you to choose a good mixture of superannuation fund, investments outside of super that you can access in the event of emergency, and help you manage the level of insurance you need to cover your loved ones' cost of living in the event of your passing.

5) Solving the Myth of Superannuation.

A financial planner can help you understand which superannuation funds work best for you. Understanding the ins and outs of superannuation, or super can be confusing on your own.

You may believe you don't need more than the 9% saved through your employer to help ease the burden of retirement. If you're thinking it's enough money to retire on, you're wrong. The FPA estimated that a person retiring in 2003 would have a measly $100 a week, tops (based on a person surviving 15 years after retirement).

6) Borrow to Invest?

This may seem like a strange concept, but a financial planner may be able to help you decide if it's in your best interest to borrow money to help you make better investments. Some people want to create wealth quickly, and borrowing money will give you more funds to allocate towards investment.

A financial planner can assist you with assessing your financial position to get an idea of the level of risk involved. If you decide to borrow, you'd still be assuming risk, but with the help of a planner it would be less than if you decided to borrow on your own.

7) Assess Inflation.

If you look at your portfolio, you might think you have a good amount of capital growing - until you take into consideration the rate of inflation.

A good financial planner will be able to help you assess inflation to help you keep your capital growing over the years. You want to make sure your after-tax return is greater than the rate of inflation so the value of your money doesn't decline. You also want to make sure you have some capital growth over the years, and a financial planner is someone who can help ensure this.

In Conclusion.

There are quite a few things a financial planner can assist you with to get your finances in order. From retirement planning to assessing the inflation rates to your portfolio, a good financial planner is able to channel funds into different risked funds and plans to create a secure future for you and your loved ones.



You can locate the most widely acclaimed Australian financial planning resources at Start Local. Wherever you happen to reside in Australia, you should make Start Local your first choice for facts. Start Local is Australia's most rapidly expanding local search engine and business directory. If you're looking to find the best Australian local financial planning, look no further than: http://www.startlocal.com.au/finance/financialplanning/

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Choosing a Savings Account More Than Just A Safer Piggy Bank

Choosing a Savings Account More Than Just A Safer Piggy Bank by Everette Jamison

Everybody should have a savings account, and preferably more than one. There are different types of savings accounts to meet different needs.

From basic savings accounts, which work well as starter accounts and which offer some interest but not a whole lot, you can move to higher-interest bearing savings accounts, money market accounts, certificates of deposits, and more.

Basic Savings Account

Basic savings accounts are just that. You deposit money, and it grows. Slowly. Still, if you leave it in there long enough and keep adding to it, its growth can be substantial over time.

The basic account is probably also the right account for kids who want to put their piggy bank savings to more effective use. But once they have saved enough, they too should consider upgrading. And if you wish, you can set your savings account up so that you can access your money through an ATM machine. Then again, you may prefer not to do that, the temptation is too great to use up the money. It's better to let it grow.

As with all banking services, if you want to open a basic savings account, it's worth your time to shop around and compare interest rates and minimum deposit requirements. Generally, interest compounds daily and is paid monthly. If you already have a regular bank, start your shopping there.

Money Market Savings Account

Once your savings have grown a bit, you may want to add a Money Market Savings account. You will earn more interest on your savings, yet you still will be able to access your money easily. You can even have ATM cards to get money at your leisure.

Certificates of Deposit

But there are more savings account options. Certificates of Deposit, also called CDs, allow you to lock in even higher interest rates for the time you decide to commit your money. Be sure to plan ahead, though, since you will lose some of those benefits if you need your money back earlier than planned. Certificates of Deposit generally come with hefty penalties for early withdrawal.

IRAs and Roth IRAs

At an even higher level, with much less flexibility but much higher rewards - there are savings instruments such as IRAs, Roth IRAs and similar savings accounts. The government has specific guidelines about how much you can save and when you can get your money back, so once you're ready to open an IRA or a similar account, talk to your friendly
bank representative to get the full details.



Choose the local Richmond Virgina Bank that offers Richmond Financial Services to all it's customers. Think http://www.firstmarketbank.com

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Lets Look at Finances

Lets Look at Finances by Jessica McGregor Johnson

Whenever you are looking to make a career change it is really important to address your finances. Many people can be rather ostrich-like about this, but if you analyse your situation at the beginning then it will certainly smooth your way later.

The first step you can address is budgets. Whenever you move from one career to another that includes a time for retraining, you need to have a close look at your budget. Often it means a time of pulling in the belt and cutting back in some areas. It is always best to identify this before you set out so you can make plans.

Take a piece of paper and create two columns.

In the first column write down all your main monthly living expenses, the ones that are not avoidable; mortgage payment/rent, utility bills, insurances, basic food bill, car payments/costs, health care, anything that is a fixed, unavoidable, cost.

In the second column write down all the other payments you make in a month, health club subscriptions, meals out, holidays, clothes, luxury foods, hobbies, movies, luxury goods payments, everything that is a choice rather than a necessity. If you don't know what these might be then keep a note of all expenditure in a month, everything, even that cup of coffee. It is quite revealing.

It is always good to see where the money you're currently earning is going and it helps you to see where you can implement a change of priority. What could you maybe spend less on, for example taking lunch to work rather than buying it every day. Or maybe there are expenses that you can simply drop for a short time till you are earning full money again.

Sometimes retraining does require us to change our lifestyle, if only temporarily, however the final outcome, the new career is always worth it. One word of caution, do not budget out all the fun stuff in life, you also need to be able to enjoy your life whilst you retrain and so identify some of the less expensive (or free) things or activities that you can keep in your life.

Once you have got real about your current and projected finances the next step it is to work out the shortfall. This is obviously something you will need to do with your partner if you have one, as it will affect him or her too. Is this shortfall an amount that you can supplement with part time or evening work? Could you see yourself doing a full or part time course and working enough to fill this shortfall?

If yes, then you have the next step - identify the part time work that you could do that would pay enough. This is a matter of research, the wider the window, i.e. you being willing to do a wide variety of work, the easier it will be to find part time work. Make a list of all your usable skills and of the type of work you'd be willing to do - for ideas go to a job website like monster and search different skills.

You might also try talking with employment agencies; they are a good source of ideas. Once you have some ideas start contacting those types of companies. Another thought is perhaps your current place of work might consider a part time position; often companies do not want to lose good employees.

If however you realise that part time work is not going to address the total shortfall then it is a rethink that is needed. Is your only option a full time course? Could you re-look at that element of the puzzle? Given your financial picture what would be possible? Maybe a longer, less time consuming course? Investigate if there are any grants available or maybe student loans that have a low rate of interest. This can help pay for the course as well as supplement your part time earnings.

Sometimes you do need to finance a retraining through loans, but the main thing to do is to have a debt repayment plan before you go down that road. In this way it feels more attainable and can't get out of control.

Another option if you do not like the idea of large loans is to see if you can save some of the necessary money before leaving your current job. Once you have identified possible cuts your current budget this may seem more possible than right now and may not delay your progress too much. Finances are a juggling act, look at different variations of ideas and see which one looks the best for you.

Most importantly be real about your finances. You need to approach your finances without rose tinted glasses, be creative and open to any (legal!) idea or way that makes it possible for your dream to come true. When we come from that space, with a determination to make something happen, we cannot fail.



Jessica works internationally as a Life Fulfilment Coach empowering people to create the life they choose and gain fulfilment in every area of life. If you would like to arrange a time for her to call you for a free introductory session please email Tel +34 958 639 593 or click here to email me For more information visit her website by clicking this link

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Why Is It Necessary To Plan Your Retirement Living?

Why Is It Necessary To Plan Your Retirement Living? by Cindy Heller

Retirement living can be something that is fun and something you can look forward to. It will always be much easier to go through the retirement age period and all the difficulties it implies if you start planning early.

You should consider planning each and very aspect of your retirement living carefully. Do it with plenty of time ahead instead of doing everything the day before retiring. The earlier you start the better. Since one could no possibly predict the mental conditions one is going to be in, it is extremely important to plan everything in advance and make all the necessary decisions now. Senior citizens who cannot make decision about their preferences are protected by the law, but the laws will be beneficial only if there is a legal record of the retiree's desires.

Take the Responsibility to Plan Early to Avoid Future Problems

In order to have a quiet, relaxed retirement, it is crucial to start planning in advance. If your mental condition at the retirement time does not help, then it would be important for you to have a legal record of your desires, which the law will respect. Therefore, it becomes essential to do all the legal procedures that are necessary, considering the aspects that follow:

1. Old age diseases can be a problem for you retirement living, especially those affecting the mind, so you need to finish your legal will, in case you get one of these diseases. If you do not do this, your retirement living will not be as you wish, and your family will not be protected.

2. Get the help of a good lawyer so that he can advise you about the right time to change your property titles. You do not know if you are going to be able to decide in the future. Therefore, it is important to decide early who you want to inherit your properties.

3. In the same way, your lawyer can make your wishes concerning money gifts and properties legal, taking care of the interests of your beloveds.

4. On order to make it easier for your family to fulfill you will as you reach old age, make sure to record all the details about your wishes concerning your retirement living since you do not know if you are going to be capable of expressing them later in life. Include aspects such as living place, insurance, money issues, etc.



Cindy Heller is a professional writer. To learn more about retirement living, please visit home retirement plan.

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Saving Money From Income - Are You a Saver Or Spender?

Saving Money From Income - Are You a Saver Or Spender? by Ray Prince

It certainly looks all doom and gloom at the moment doesn't it?

Open any newspaper or tune into the news on TV and if you are anything like me, you get punch drunk with all the articles on how bad the stock market or property market is etc etc.

It may seem perverse then to write an article on savings!

However, as ever, this is an immensely important subject that affects our clients' future security. As we view a Doctor or Dentist's financial affairs over at least 15/20 years, we can clearly see the effect this has on their overall position.

Quite often the savings and investments they made in the early years were fairly modest, but have now built up very nicely thank you over time. This helps massively towards their 'Financial Independence Day'- the time they can choose to stop working.

Because the service we offer to our clients includes being able to look ahead at how their lives will look in, say, 15 years time (by using cash flow forecasts), we can show how much they need to save/invest NOW so that they do not run out of money in the future.

So, looking at the big picture, are we Brits serious savers?

Well, we certainly used to be. It took some time to recover from the war, but by the mid 1950s, we started to make real progress.

Here is the average UK savings ratio for 1960-1989:

60s - 5.65%

70s - 7.95%

80s - 8.65%

The peak came in the difficult winter of 1979, when the savings ratio hit an all-time high of 14.1%, or to put it another way, one in seven pounds.

Now let's look at how well we saved in the Nineties:

1990 - 1994 - 10%

1995 - 1999 - 8.28%

Yes, we saved hard during the recession of the early Nineties, but our savings habit started to slip when the housing market took off from the mid 90s onwards. However, things have certainly taken a turn for the worse recently, as the final table shows:

The UK average savings ratio, 2000-2008:

2000 - 2003 - 5.35%

2004 - 2008 - 4.30%

So, a declining trend, and the situation gets even worse.

In the first quarter of this year, the savings ratio collapsed to 1.1%. This is £1 for every £90 earned after tax, and takes us to a 49 year low.

In the past, a squeeze on our disposable incomes would have made us look to cut back and save more. Sadly, after a twelve-year housing and credit boom, it appears that we've almost forgotten how to save.

Of course, the purpose of having a bit of a financial cushion was to help when the bad times came. Well, the bad times are here, and for some people it looks like the cushion that has been there in the past is no longer available.

Perhaps the more you earn the more leeway you will have. However it is our experience that the more you earn the more you spend! (It's important to focus on how much income you're left with at the end of the month, not necessarily how large the income is).

So, ask yourself - are YOU saving enough?

Key Considerations:

It does pay to save. If you are serious about optimising your finances to secure your future, do look at what you can afford to save and invest.

Once this is decided make sure that this money is targeted at fulfilling your goals in life.

ACTION POINT

Ensure you have an up to date expenditure template to identify where your money is spent, and compare this to your income now and in the future by analysing your cash flow forecast (CFF).

This is VITAL.

If you do not have a CFF, ask your adviser to build you one, and if they cannot do this find a planner who can.

Do you have the scope to save/save more? If you have - do it!

It will bring Financial Independence Day nearer!



Ray Prince is an Independent Financial Planner with Rutherford Wilkinson plc, and helps UK Resident Doctors and Dentists get the best deals on mortgages, protection and investments, as well as helping them achieve their financial objectives. Click here for Financial Advice for UK Doctors and Dentists and to get your free retirement guide, How To Avoid The 7 Most Common Retirement Planning Mistakes. Rutherford Wilkinson plc is authorised and regulated by the Financial Services Authority.

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If You Spend More Than You Earn Then You Better Start Budgeting

If You Spend More Than You Earn Then You Better Start Budgeting by Gav Shannon

Knowing how to manage money can help you make smart choices. Your money will work harder for you. You'll be more likely to avoid traps that can undermine your ability to attain your financial goals. You'll be in a better position to pay off debt and build savings.

Calculate how much money you earn in a month after taxes. For this budget plan, use your net pay or take home pay. Include tips, supplementary income, side-jobs, investments etc. This is your income.

Figure out your expenses. The best way to do this is to save receipts for a month or even a couple weeks. Knowing how much per month you spend on groceries or gas makes the next part much easier. If you want to start writing your budget today, and don't have receipts, that's OK, it's just a bit more difficult.

Read and post messages on personal finance and budgeting topics with other people from around the world. Everything from saving money on groceries, to understanding your credit rating. This will get you some good tips on where you might be able to trim.

Break your budget up into some basic categories. You might want to organize your expenses into needs - such as your loan and electricity - and wants - such as clothing and entertainment.

List all your spending under each of these categories. Let's take Auto as an example: $300/month car payment, $100/month insurance, $250/month on gas, $50/month on maintenance, 10$/month on fees such as registration. So, your total Auto budget for the month would be $710/month. If you don't know the exact amounts you spend, try to make good estimates. The more accurate you are, the better chance your budget has of working.

After getting an overview of your monthly expenses, look for anything that you can cut down to help you save money. For example, if you always eat out at work, try bringing left over or home cooked meal. You can also bring sandwiches and drinks. This can save you an average of $200 per month if you estimate $10 of lunch per day.

Limit your movie watching to once or twice a month instead of four times a month. For a huge family this can be a lot of savings. Before going to the movies, eat first to cut down on food and drink expenses. Just buy drinks or bring your own if you can. You can cut down transportation fees such as fare, gasoline and toll fees if you participate in a carpool or ride sharing.

A simple budget can be written on a piece of a paper with a pencil, and optionally, a calculator. Such budgets can be organized in three-ring binders or a file cabinet. Simpler still thre are the pre-formatted household budgeting or bookkeeping forms that creates a budget by filling in the blanks. It is really easy to budget if you want to, but as most people don't follow thier own plan most are doomed to fail.



Gav Shannon is a Network Marketing Professional who writes about different topics that he feels may be of an interest.If You want to know more about him go to http://www.gavshannon.com

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