What's included in a good financial plan?

Financial advice helps you make decisions about your money. Good advice from an experienced, well-informed financial advisor can help you become more financially secure. Financial planning can be quite complex. There are many rules and regulations and it is hard to keep up-to-date on legislation and the diverse range of financial services products available. Most of us lack the experience and know-how to manage our finances effectively, not to mention the time to do it properly. Just as you would see a lawyer for their specialist legal advice it can be useful to engage the services of a financial adviser or planner to help you reach your financial goals.

Your financial planner will help you map out a plan for your short and long term financial needs. A good financial plan will include the following:

• outline of your financial position and needs
• set out your goals
• clearly explain a strategy for achieving your goals
• discuss risk and how to deal with it
• recommend investments to manage your money effectively
• demonstrate how each investment will help you reach your goals
• set out all costs and charges clearly
• explain and detail the commissions and benefits your financial planner will receive

Once your financial plan is in place:

• review it annually
• keep track of your investments
• tell your adviser about major changes in your circumstances (retrenchment, new baby, retirement etc)
• make sure that any changes to your plan are given in writing and the you understand the changes before agreeing