Financial planning – goal setting Guide

More than often not financial planning clients when establishing its objectives need help. Here is a list of questions, think your personal financial planning goals.

Cash flow:

1. Have at a budget one to follow you regularly?
2. Spend to have all the money you earn?
3. Regularly save money? how much? How many times?
4. Have one to a savings account to use for emergencies only?
5. Want to improve your standard of living?
6. Use credit cards? Do you have credit problems?

Think about these questions and then to determine whether you must set cash flow targets.

Potential cash flow targets:

We recommend that you have your regular issues a first help reserve at least three months? have a cash reserve?

Save for future great buys? special holiday, second home, College for your kids, wedding expenses for your children, the gifts to related? have started to save these objectives? know how to start?

How are your investment positioned?Have too much cash? you know how to invest? you what prices return know you receive on your savings or investment? Need help in this area?

Protection requirements:

1. Do you have adequate health insurance?
2. Have you salary continuance, if you are disabled?
3. Who cares for you if you turned off or become mentally incompetent?
4. Have legal documents in place, which will appoint someone to handle your Affairs, in the event that you become somehow unfit for work?
5. Appointed guardians for your children you have, something happen to you and yoru should spouse?
6. You have to worry about adequate life insurance you die prematurely should the needs your survivors?

Include protection needs insurance and legal advice.Do you have othe consultant you have worked with in the above mentioned problems?

Objectives needs possible protection:

Check my health, disability, long-term care and life insurance to understand some insurance premiums have what I currently have and what options have changed recently available sind.Da mortality tables, sunk.You might be able to save money by switching from politics.

Disability insurance be verstehen.darauf, social security and other forms of disability insurance my not pay possession “own work”, as you expect.

Check out my my will, living will, power of Attorney, health care proxy and other important documents my documents for the Nachlassplanung.Achten wishes widerspiegeln.Achten you that quota agent for your powers to if a parent of minor children, sure, guardianship deal.

Retirement plan:

1. When do you expect to retire?
2. How long expect to live? will be at what age?
3. You have how much, when you retire?
4. Are you worried that you can survive your savings?
5. Are you actively now save for your retirement?
6. Do you know how to start?

Briefly describe how you imagine will do your Ruhestand.Was, need to achieve financial independence?

Review and thinking about these questions help you no matter when you hire a professional to do your comprehensive financial plan or you do it yourself want. While comprehensive financial plans anywhere from $1,000 to $20,000 if costs can done by professionals, refer to help in developing your own plan free financial planning advice.

Integrate ideas Gary Lewis more than 30 years working with investments, including 20 years of experience in the derivatives industry and 10 years as a comprehensive fee only financial Planner.Er specialized in designing portfolios to meet the client required rate of return with a minimum level of volatility.

Gary keeps CFP? and ChFC labels and earned a master of management (MM) in finance from Northwestern University.Er lives in Mexico City.

Financial planning and analysis – golden key to a secure future

Everyone strives for financial freedom. To achieve this goal, you must have a financial plan in place. This ensures a smooth life and financial stability. It is said that the change is the only constant in life. As we by changes in life, must that financial plans also reviewed and adapted to the changing situations change. Most people are the importance of financial planning and the role it plays in our lives.

Change and analysis:
Life is a series of changes, the continuously.Very often you have to check the financial plans due to these changes.This does not mean that the original financial plan a failure war.Es needs only a little customizations to which changes anzupassen.Dies keep track and to prevent any major financial problems you’re likely to encounter can be.

Start:
Financial planning is the beginning of your economic life.You should analyze the situation and plan accordingly.If you feel that you analyze your finances and the development of a revised plan are able, can then you there in just a few steps first step tun.Der, your assets and liabilities to kategorisieren.Dies helps to measure your net worth. If the net worth in the negative, then you may be certain actions to make the negative to a positive net worth must take.This is a simple analysis of your financial situation and make the changes to the plan had in place.

If you are overwhelmed by this activity, take the help of a professional financial advisor which will result in the matter.

Finally can an individual using the financial planning and analysis, get back his life on track.Careful analysis help the a decision to draw up plans for the reduction of expenditure and find ways your income to ergänzen.Dies will help in the repayment of debt and ways to ensure a smooth and secure Zukunft.Ohne should financial planning and analysis you away from the goals set drift he or she has, financial freedom to erreichen.Es financial responsibility and life in General without a plan will be with in force difficult to handle.

Abhishek is an accountant and he has some great tips filing and understanding taxes!Its free 84 pages eBook “Taxes made easy!” from his site http://www.Taxes-Guru.com/777/index.htm herunterladen.Nur limited free copies available.

Financial planning services – spend thousands & save millions

We make money from multiple sources and it is also necessary to live a good life. You also have to build your income sources and would work so hard to do. But think you do a proper financial planning to manage your income, expenses, savings and investments. Efficient tools for managing these issues and other related issues to finance are planning services.

Financial planning services offer a range of tailor-made services to support individuals and businesses to change their financial future in the different phases of your life.We can say that a financial plan that guide that helps, wealth and cost efficient verwalten.technisch say financial planning is a process of money management, tax planning, budgeting, retirement and estate planning, insurance and includes investment strategies.

The companies planning coordinating financial services all elements of finance with the aim of the buildings, protection and maximize the net worth of a individuals, families and businesses.Their wealth and investment plans can in many ways be managed you hit financial planning tools such as bonds, shares, funds, etc. You can questions for better advice on banking solutions for better financial management and savings.

Service providers offer financial planning suggestions with respect to various financial issues such as prevention, estate planning, investments, financial protection.After studying the various aspects of your financial life as your current financial situation, your financial goals and objectives, etc.You develop a finance roadmap and implement it.Check your plan time to ensure you reach your financial goals.

So, this is a highly process-centric job and financial services planning firm run it very effizient.Nun, various financial planning services over the Internet to check geworden.Sie can the financial plan of choice for leading a peaceful life without financial problems it is easy.

Anton Kadin is expert in the field of asset management and investment solutions. posted by experience and know-how, his write-ups provide guidance to individuals and businesses on asset management UK, solutions UK asset management company prosperity and Financial planning services.

Financial planning

Financial planning or financial management is a must for us to achieve financial freedom. Previously do all planning, we must clearly understand our net value and cash flow. Be financial we have healthy, positive net worth and positive cash flow. If negative, fast and necessary measures should be taken to avoid problems.

After our financial status understand our net value and cash flow analysis, we should understand our investment risk tolerance.This is to understand, our own behavior and attitude in Anlagebereich.Von investor risk tolerance analysis helps us to plan properly for our investment approach and tactics.

Always do the fundamental step of financial planning, we should set measures to improve our financial status and our financial goal.

Plan our cash flow analysis we should spend budget to our of our annual or half yearly or quarterly expense tributary to manage and drain to avoid the unnecessary item.

Then, we should move forward to achieve our financial goal.We should charge to reach the duration and the lack of our money destination.

We can aim for travel in the next two years, our children education plan, retirement plan, home ownership plan, marriage plan, etc. should make priority festlegen.Jedes goal and achieve it one after the other.

After reviewing the loss money necessary, must we plan the tactics aim to erreichen.Auf basis risk tolerance and duration, we should know our investment tactics, and it always still not enough, can consider the plan to delay or to improve our income.

It is advised to do long-term planning, as we know that the cost of delay we start our planning of the early, goal is to reach the less load we have than the cost less, which can it from our income sein.neben when planning accessible this return of our passive income that may be early to invest the compounding is much higher and it help us a lot to reduce our capital.

If you are lack of knowledge on financial planning, it is advisable to learn or some advice financial planner will help you a lot we pay back return get much more of what we pay bekommen.Glaube on the fees need for financial advisers, and it is a leverage effect method and win-win situation for us and financial advisors.

Loh Kim Guan
http://www.routetofinancialfreedom.com/
http://www.step2financialfreedom.com/

Financial planning for families

For many families is one of the most controversial issues financial planning as it seems that money is not really out money is equal. It seems that much is getting more money spent, compared to what is won by families. Each family should finance with efficient planning and eliminate this bad output techniques apply.

One way to improve the financial performance of your family is strategic plan to reduce of debt exposure through the development and family consolidated loans in a loan with lower Interesse.Zum example, with the growing problems with credit cards it is advisable to destroy all your credit cards and keep only a way of additional debt keep.

For the effective planning and good finance, maintain a family must commit themselves to other money saving plans and term to reduce expenditure. Get your family involved in a long-term sustainable financial investment can be a great idea.Engage your family in cost containment activities for better monetary Zukunft.versuchen save on electricity, differentiate between requirements and will the shopping at best buy utilities, and other items in bulk to save money. Cost-saving techniques ensures that your money is not wasted.

Another technique can provide about your finances from the control using the financial advisor you with your family have monetary goals helfen.Sie. The financial advisor will take care the financial budget that would eliminate wasteful spending, reduce the high interest, expenses and transfer all debts in wealth. But when entering the professional planning financial advice, you should keep certain things in mind.

Collecting monetary data as the process with the family begins. during the appointment of financial advisor, financial data would data on the assets, liabilities, obligations and liabilities collects money. It’s more like financial inventory. The following step is to identify short- and long-term financial targets of the family. And assets can include levels and income that will reach a family in different time frames, income protection, training costs and retirement planning and planning for other unforeseen events.

Identifying the financial problems is an important part of financial advice.Financial Advisor gives a hand to monetary goals here by comparing the actual financial situation for the best strategy to achieve the objectives.During the preparation of the budget, he will strengthen family Monetary Union and take weaknesses.Tailored according to the requirements of the family, all the goals is to financial plan made reach.

After all recommendations in financial plans have been agreed, it is necessary you implemented.The financial plan is all formalities as signed by financial client and the Scheduler should bereit.Auch for updation time to time revised interaction with your Planner can help werden.Laufende, tracking existing investments to erreichen.Umgang with your family while in reviewing progress and financial plans finance not more difficult with the tips mentioned above.

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Traditional financial planning – your health, wealth and estate plan

Finance is really an aspect of our lives that must be maintained and that must be managed efficiently. Only current financial condition is not important, but your future financial situation should also robust. This is important for a peaceful life and providing peace of mind to your love. And traditional financial planning tools can be used for this purpose.

Theoretically various investments say, traditional financial planning and includes savings questions so that you can enjoy your whole life with financial security.It can include planning for retirement, insurance instruments and capital growth solutions. you can do a tax efficient investment, so that you can save money and conserve the tax also.

The traditional financial planning company can consultation concerning investment for children, retirement and estate planning options, inheritance tax, wills, pension reforms, contract manufacturing, responsibilities of the Board etc. provide annuity. By opting for this financial planning company, you can make specific financial plans for your future at low cost.You can also different insurance life Abdeckung.Es can offer help for you and your family at the time when you need it most. For example, it could pay off your outstanding mortgage and other loans, if you for example, if you are diagnosed with an incurable disease.

Beyond the traditional financial planning helps companies regarding other financial protection as financial risk management, insurance and health. Earn your relevant financial information such as tax returns, net value and cash flow statements monitor your current financial situation by, insurance policies, investment portfolios, employees use instructions, pension plans, etc.You then identify financial and objectives realistic and reachable.

.Firmen can traditional financial planning, some insurance plans, wealth management plan, estate plan and pension plan suggest.You can choose any financial plan according to your choice and must and you now need do investieren.So, not worry about your future only check financial condition on various investment Planner over the Internet and Ratschläge.Ihre search suggestions can give you a great help be.

Anton Kadin is expert in the field of asset management and investment solutions. posted by experience and know-how, his write-ups provide guidance prosperity and traditional financial planning for individuals and businesses on asset management UK, solutions UK asset management company.

Fee only financial planning

Are looking to make profitable investments in the financial markets? Financial Planner helps you with experts, professional advice on long-term profitable investment decisions. The best financial planners have recommended the expertise and choose specific investments to other (based on the criteria of profitability and other unique preferences of the customers). Financial planners are quite abundant in number in the United States, and there are also different types of financial advisors. Only fee financial planners are a type of financial consultants who offer financial planning services only special fee. In fact, before you actually money investment, should you find ideally a financial planner for the proper and expert guidance.

If you rent for a fee-only financial planner, have sufficient knowledge about you before purchase of the services of a financial planner to haben.Einige of basic information potential investment clients need to include access:

(a) who is a fee only financial planner?

Investors need the specific class Adviser aware, called the ‘just fee financial planners’.A fee only financial planner has the following characteristics:

Compensation – a fee-only financial advisor receives its compensation (or payment or service fees) its clients nur.Die can differ based on this payment, it removes a fixed annual fee service fees on an hourly basis.Fee – only financial planning services can also calculated as a percentage of the total assets, maintained by the designers.

Commissions – only fee financial planners do not receive any additional service charges or commissions received directly from the clients of the apart.

(b) features of a fee only financial planner:

The main task of a fee only financial planner is to design and implement effectively, würde.Die investment plans should investment strategies that meet investment objectives its customers in theory, easy to understand, simplistic by investors and should be adaptable to practical applications be investment plans arranged by only fee financial planners haben.Diese finance plans should a long-term perspective also the changing market conditions should profitably, taking into account all dividend and other policy areas of finance about the broader time Horizont.Nur fee financial planning exercise should IM kümmern.Die strategies you develop should therefore flexible enough to meet any change in the finance market conditions.

(c) qualification of a fee only financial planner:

As per the rules of the National Association of personal financial advisors (NAPFA) a fee only financial planner have following qualifications:

(i) (S) he must hold a Bachelor’s degree (or its equivalent).

(II) (S) he must only accept always direct compensation from the clients, and has documentation to prove, that payments from any other sources not accepted.

(III) (S) he should have a proper, high level training in financial planning.

(IV) (S) he should all registered investment advisor law both at the Federal and State levels and the NAPFA follow fiduciary oath.

(V) (S) he should at least three years experience in professional financial advice will have.

(VI) fee only financial planner must have reviewed submitted by a comprehensive example budget, a colleague or peer.

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Financial planning – not only investments – part 1

FInancial planning, who needs it? Many say my bank or stock broker does it for me. Is that enough? What should be in your financial plan included? Everything!

With a clear focus on your financial goals is often an important place to start, but few really no idea what you want in life financially.And even if actions until you can see how expensive a good lifestyle in the future will be actual projections, it is impossible, a savings strategy for formulieren.Betrachten you with this in mind current financial plan complete with projections to develop.

Collect start with first and organize important Daten.Sie need cash and investment bank statement, pay stubs, income tax returns, employee benefits statements, insurance documents, estate planning documents and a thoughtful from budget. When all have this data, you can begin your current financial plan.

Your financial situation is the easiest place to start. If you have ever looked at a corporate annual report, you should consider how it is structured. In the beginning of smiling faces are talking about what a wonderful year they had and detailing all your success.As next could come the challenges that are ahead and a discussion on how the company is going to these challenges to overcome. Finally comes the supporting materials – the financial statements. While the financial statements in the presentation come last, could the accomplishments, challenges and action plan not discussed have been identified was a current position. Thinking to yourself or your family, you move forward as a business and accordingly.

Start with the balance sheet. The balance sheet lists that all your assets and liabilitiesAssets include all your bank accounts investment accounts, cash value insurance, real estate, business entities such as partnerships; and personal property as your home, car, boat, furniture, art, jewelry, and anything else that value. Think of everything that you yourself, which has a value and run you. Liabilities include your loan, credit card debt, auto loans, mortgages and so on. If you subtract the liabilities from your wealth, what remains is your net worth.

Next you compile your cash flows. List of all your income. Includes not only your salary but interest, dividends, rent and so on. Is a good place to easily find this information on your last tax return. Use your tax statement to bring the income generating assets in your balance sheet in line. If you do not to match, you could have made a mistake. Add all your income for the year together and take the issues you have on your budget sheet listed.What remains is either a surplus or Defizit.Wenn have a surplus, then you should something in idle cash in your pocket or sit under your mattress have. No.? You have no surplus? So, either you stored it or you you spent on elements that could not classify in your budget. Recheck your budget and try to learn where the money went.

Make a list of your financial assumptions. Start with the balance sheet. Assign each asset class with a growth rate. Cash assets could grow at 0% and 2%, fixed assets may grow 3% to 8% (no dividend distributions). Your House could grow 3% to 5%. Be sure that your assumptions are rational. The same applies to your income and expenses. Determine how much to increase your income each year and in which year you will retire. List your assumptions about social security. Also, get it? If so, it with who installement will increase each year. Look at your expense. How will the inflation affect you in the future? Make sure look at the historical rate of inflation. During the inflation that might now low numbers based on the Government, most of us are sure that grow our costs by more than 2% per year. Be realistic.Bad assumptions are your plan doom. Finally determine your life expectancy. Chances are that you can live 90 or 95. Maybe longer. Check out to get your family history to a good age. Be not too conservative. There is nothing worse than your income survive.

With all your assumptions in place you can your asset values and the profit and loss account now to your life expectancy project.With these statements in hand you can now realistically begin preparing your annual report.Last year, had a plan in place, you can assess how well you look at last year until now done use should be able, in the last year’s plan and see if your net worth is increased, how you projected that it would be.If it hasn’t, you will see what went wrong.Either it will be that you don’t deserve what you thought, would you, spent more than you projected you or your assets do not perform as well as you predicted.With this information in hand it is easy to figure out a strategy to get back on track.

Your financial situation is only the first part to your comprehensive financial Plan.Ertragsteuern, insurance, pensions, education planning, investment planning and estate planning are other elements you want to include.As you can see, develop your comprehensive plan can take much time and energy but in the end, is its value the effort well.

When you hire to do a fee-only financial planner, work planning can rich fees anywhere from $1,000 to $20,000 or even more if you are using a big companies of name go. for those who prefer to try to do it on your own is a free resource use can visit free financial planning advice to see how your own plan erstellen.Ob someone do your plan or invest your time pay to build it, the benefits you gain are sure to give you peace of mind.

Integrate ideas Gary Lewis more than 30 years working with investments, including 20 years of experience in the derivatives industry and 10 years as a comprehensive fee only financial Planner.Er specialized in designing portfolios to meet the client required rate of return with a minimum level of volatility.

Gary keeps CFP? and ChFC labels and earned a master of management (MM) in finance from Northwestern University.Er lives in Mexico City.

Achieve personal financial planning, peace and independence – to financial freedom

At one point in time each has attempted to increase credit consulting company through effective personal financial planning or an outside either a way to repay his or her your monthly income mounting debt. Sometimes the stress which have limited resources is too much to handle, and a plan is then determined to be vital to achieve financial freedom from credit companies. Most consumers would be better off, create your own personal financial planning schedule, because this action allows, who take full responsibility and requires that you began to from the dig a deep hole of debt.

To achieve financial freedom, you always you dreamed, first your life and budget and only a system will need to integrate the personal financial planning find economic peace and Unabhängigkeit.stellen you you are, no loans, no debt, no growing pile of invoices – it is possible if you speak a plan to get out of debt and not just about.

Planning

Dave Ramsey, a financial planning and self-help expert with his own radio show, makes it his business to help others find the peace you are looking. It offers a growing sector of Americans with mounting debts and offers solutions for complete financial freedom with personal financial planning to reach all facets of an individual budget addresses.Dave’s tips is one of first the smallest debt pay – action-based approach he terms of the debt snowball Plan.Durch elimination of smaller debts first, start you see results immediately. It shall recommend to save $1,000 in cash and then related to first pay for the small debts. The rapid removal of this debt are proceeding, motivate fight against the larger.

Furthermore, recommends a kind reward system to keep the success overview of your own personal financial planning schedule – keep your old payment documents and information for reference in the area and who were paid have show complete.If you stay with this proven plan, you will (1) debt and financial freedom be min. ability to achieve financial freedom is not necessarily difficult; it is just about you sit and formulate an effective practical approach for personal financial planning to eliminate your debt. Some experts recommend also cutting up your credit cards to prevent that you excessive expenditure.

After all, if you have the money for it, you should probably buy it.

Harmony

Acquisition of a level of peace given debt is possible.Many Americans see, articles, books and Web sites on the subject Alltag.Es is important to remember that you are not alone in the fight against the debt; You can out of the hole and financial freedom with time reach. Peace is reached as soon as your personal financial planning structure successfully, but was sit not only back – you have to work for you. , Such as credit companies money – make viewing, by charging excessive interest and expected to pay only minimum amount each month.And let’s face it, if you pay the minimum amount, should a credit card. With such obvious gouging of consumer wallets, what can you do, to progress?

Never numbers you only the minimum balance, but pay what you can. Buy not items that don’t really need, save your money for a rainy Tag.Eine card with a lower interest rate or more benefits, discounts, change or travel benefits. Live far below your income;After all, it really no need to zeigen.Verwenden you your credit card with careful, by a list of detailed expenditure necessary plan your personal financial planning.

Let yourself off the credit card companies use longer – hijack your tax situation and achieve financial freedom you want. The first step towards paying off your debt is the first step towards peace.

Independence

Much get as authorised also monetary advice from the Dave Ramsey spot on the radio, consumer spending and save money expert Suze Orman.Consumers see her show every night to useful tips on achieving financial freedom and independence in your own life.Their recommended personal financial planning guide for financial independence in your book nine steps outlined is paying off your debts first priority and following guidelines (2) to make:

Cutting all your credit cards – except for a soll.Allerdings be used only for emergencies you keep to 30 years of debt this card in your Brieftasche.Wenn to avoid paying more than the minimum balance, but do Mathe.berechnen owed your interest rates and money, find out the actual amount you pay each month to. make it your own personal financial planning schedule.The credit card first pay higher interest rate.The conditions of your credit card full research – fees, charges, grace periods or what you think.If you still feel lost and unable to achieve financial freedom, get help! the consumer credit is counseling service available for you to organize and to konsolidieren.beginnen your first steps towards independence by you have gone all your debts at 1-800-388-2227 aufrufen.sobald, use your debts you the money that would have paid you, company to a brighter, more independent future Kredit.Am most important of all – keep on the way to stay out of debt continues to strive and achieving financial freedom.
Sources

1. Dave Ramsey, http://www.daveramsey.com

2. Suze Orman, http://www.suzeorman.com

Darrel Giann is the founder of http://www.just14-95.com individuals starting a website helps a career in the financial world and extra income to verdienen.Giann is one financial consultants has many years of experience in teaching people how you ahead in life to erhalten.Er works now to help other erreichen.Um more financial freedom of knowing just $14.95, please visit http://www.just14-95.com

Financial planning – the 10 key questions, to questions

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No matter what stage of career you’ve reached, or even if you’ve retired, there’s a number of key questions that you should be able to answer to give yourself the confidence that you’ve addressed all the important areas of your financial planning.

So, today, I’m going to run through the key areas that we run through with each client to take a ‘barometer’ of their financial planning health.

Let’s get started.

So, have you…?

1. Really thought about what you want for the rest of your life?

The dreaded ‘setting goals’ part…You’ve already done this for your career and no doubt in other parts of your life as well. So, now’s a good time to take stock and think about how you want your life to look from now on. It may well be that it’s in tip top order and nothing needs to change – the key is to go through this ‘discovery’ process with you and your significant other.

2. Fully organised your various assets and analysed how they will help you achieve your goals?

A major goal for all doctors and dentists is planning towards retirement. I presume you have other goals as well, ones that will require money to achieve? So, the question is: will what you’re doing now with your finances allow you to achieve your most important goals? You may or may not know the answer to this. After all, it can sometimes be difficult to work out whether you’ll have enough money for your future.

3. Completed a detailed expenditure plan so that you’ll know how much money you’ll need to live the life you want when you stop working?

How much money, after tax, will you need to fulfill all your goals once you’ve stopped working (and the salary/net profits have ceased)?

£3,000 per month?

£5,000?

£10,000?

What’s YOUR number?

This exercise is crucial and it’s what drives many of the financial decisions that you’ll face between now and giving up work.

4. Created your own Financial Forecast to show when your ‘Financial Independence Day’ will be?

At what age COULD you give up work if you chose, even if you decided to continue working? Financial forecasting will allow you to see your financial future and help you make your financial decisions.  Now, it probably IS possible for you to do this exercise yourself, maybe using Excel or a similar tool. However, I would advocate using the services of a financial professional that provides this sort of analysis. Not all do, so you may need to do some detective work. A good place to start is the Institute of Financial Planning’s website.

At the site you’ll be able to search for Certified Financial Planners (you’ll find yours truly on there). Whilst that will not guarantee that they offer financial forecasting to their clients, there’s a high probability that you’ll find one that does.

The KEY benefit is that you’ll be able to work alongside someone that is able to provide you with an objective viewpoint without having an emotional attachment (that inevitably you and your friends or family would have).

5. An overall written Financial Plan and Strategy to guide you over the years?

If you’ve taken the time to take action on the steps above, the KEY is to implement your plan. What action do you need to take to increase your chances of achieving your most important goals?

You’ll probably find that there’s quite a bit of work involved initially, but if you set things up the right way, the ongoing time required to keep your financial plan on track should be minimal, especially if you are using a Financial Planner to drive’ the whole process for you.

Yes, ok, I’m obviously a little biased in my comments seeing as I earn my livelihood from working as a Financial Planner. But let me ask you a question.

How valuable is your time?

Looking at it another way, do you do your own accounts each year?

Exactly! So why spend hours each year trying to learn a skill that you can outsource to a competent professional who performs that role all their working lives?  

Choosing the right Financial Planner is a very important decision. Take your time and make sure they are offering a long term strategic financial planning service, rather than a product retailing service (which actually may be fine if that’s all you need).

And make sure you pay them a fee for the service they provide. If they only work on a commission basis, guess what will probably happen at some point in your dealings?

Think about it, how else would they earn an income if you don’t buy a product? (that’s not to say commission is bad – I just believe it should not be used to remunerate a Financial Planner who is providing you with a comprehensive financial planning service).

6. Made sure your Wills are up to date? (assuming you have one)

You do have a Will, don’t you?

If not, this step is crucial. Let’s say you’ve gone to the trouble of putting in place all the steps highlighted. By not taking this last step, all your hard work could be undone. Without a Will, you would die ‘intestate’ and your assets would NOT be distributed in line with your wishes.

So, contact a solicitor and get it set up! The cost is not too much and once you’ve done it you’ll be able to tick  another box on the road to creating your robust financial strategy

Whilst you’re getting the Will sorted, ask the solicitor about setting up Lasting Powers of Attorney. In brief, These are legal documents and they provide consent to another party to act on your behalf to deal with your relevant financial matters should you be incapable of doing so.  

7. Investigated how much risk you are taking with your investments?

If you have ANY money invested in traditional investment schemes such as personal pensions and equity ISAs, you owe it to yourself to take the time to analyse how risky your investments are. Sadly, some medics and dentists believe they have diversified their risk simply by holding a number of funds within their ISA/pension. But what if all these funds are equity based funds? It’s entirely possible that they are taking too much risk with their money but may not necessarily have access to the right information to make better investing decisions.

8. Analysed how much risk you SHOULD be taking?

Even if you have a good grasp of how much risk your money is exposed to, do you actually know whether you should be taking more or LESS risk in order to achieve your goals? For example, if you’re on track to achieve all your goals, you may be able to reduce the amount of risk you are taking and still remain on track.

9. Checked how much you are paying in investment costs?

When you invest any amount of money into ‘mainstream’ products, such as Equity ISAs and personal pensions, a certain percentage of your money will be taken in charges levied by the investment company/product provider. Typically, these may include:

sales/advice commissions
initial charge for the investment (usually ranges between 0-5%)
ongoing annual management fee
other fund expenses (known as Total Expense Ratio)
trading costs within the fund(s)

Now, I appreciate that delving into all this may not overly excite you. That’s fair enough. But just because you don’t have the time/interest/inclination doesn’t mean you should ignore it!

As with point 5, get it outsourced to a competent professional. The end result you’re looking for is to check how much you ARE being charged and whether you are able to reduce these, where possible. 

10. Recently completed a proper psychometric risk evaluation?

What makes you tick? Do you know why you’ve made certain investment decisions in the past? What influences your decision making process? Rather than simply judging your attitude to investment risk on a scale of 1:10, you need to go ‘deeper’. There are tools available to help you understand how you make financial decisions and how to improve your ability to make these important decisions. Ask us, or your financial adviser/planner, for more information.

BONUS STEP

11. An Investment Philosophy to take you through good times and bad?

Does your investment portfolio consist of a collection of funds that perhaps were selected a number of years ago (and have not been reviewed since), or do you have an investment philosophy that underpins all your decisions?

It’s probably fair to say that many medics and dentists will fall into the former camp, although that’s often the case because their financial adviser/planner has not developed an investment philosophy of their own. Ask your adviser/planner (if you use one) what philosophy they are using for the management of your money.     

ACTION POINT

So there we have it. If you’ve read this far then you’re obviously serious about your financial future. Now all you have to do is take action and make it happen!

Ray Prince is an Independent Financial Planner with Rutherford Wilkinson ltd, 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. Just visit http://www.medicaldentalfs.com to get your free retirement planning guide.

Rutherford Wilkinson ltd is authorised and regulated by the Financial Services Authority.