What is Financial Planning?

Financial Planning is the process of meeting your life goals through the management of your personal finances. Financial planning is about setting short and long-term life goals and developing strategies to achieve those goals. Life goals can include buying a home, saving for your child's education, planning for retirement, or estate planning to name a few.

According to the Financial Planning Association of Australia, financial planning involves a six step process:

1. Gathering your financial data
2. Identifying your goals
3. Identifying any financial issues
4. Preparing your financial plan
5. Implementing your financial plan
6. Reviewing and revising your plan

Why plan? Financial Planning provides direction and meaning to your financial decisions. It puts you in control and allows you to understand how each financial decision you make affects other areas of your finances and/or life goals.

What does a financial advisor do?

A good analogy for a financial advisor is a sports coach. They are your financial coach to help you achieve your short and long term financial goals.

A good financial planner will help you:

• identify your goals
• make informed decisions about your money
• use and protect your money to your best advantage
• choose financial products that suit your needs and circumstances

By law a financial adviser must have a license or must be an authorised representative of an business that holds an Australian financial services (AFS) license in order to provide financial advice. The Australian Securities and Investment Commission (ASIC) is the body responsible for regulating and administering legislation regarding the financial services industry.