How a financial plan can benefit you

Failure to set a financial plan in place is a major reason why many people do not achieve their financial independence.

"Which path should I take", Alice in Wonderland asked the rabbit.
"Where are you going?", he asked.
"I don't know", she replied.
"Then it doesn't matter which road you take!"

All it takes to get ahead is a well conceived strategy, a clear plan and giving yourself enough time to achieve your goals.  Goals need to be continually reviewed.  Apollo 8 had a clear objective; to go to the moon, orbit it and return to earth safely, but interestingly  95% of the time they were off course.  Set your goals, review your progress to your goals and refine your goals if you need to.

The Six Step approach to comprehensive Financial Planning


"A financial plan is like a 'roadmap to your financial future"

 

 

Contact Lyfords to arrange an appointment to organise your financial plan, or review your existing investments and insurance.  Our qualified financial planners keep up-to-date with independent research, trends, and investment performance. 
 

Yale University Goal Setting Study
An often quoted study on the importance of goal setting is one by "Yale University (sometimes quoted as Harvard University) on the business school graduate class of 1953. The researchers found 10% had goals, but only 3% had written goals.  They surveyed the same group 20 years later and found the 10% that had goals had not only achieved more wealth than the other 90% combined, but were also healthier and happier.  They also found out that the group with the written goals, had achieved far more than those that had goals, but had not written them down."

Well it turns out that this is a myth, this study was never done, it has become an urbane legend!  It makes such sound logical sense that it has been repeated by many motivational speakers from Zig Zigglar to Anthony Robbins. Refer to http://www.amquix.info/yale_goal_study.html
 

Goal Setting does work
Our personal experience is that setting a goal (target) motivates us to achieve and it helps to have a measure of accomplishment.  It's a lot better to have direction than drift.

To assist you in setting your goals we recommend reviewing the following sections:
Financial Calculators:
Retirement
Insurance
Family Trusts
Diversification 
Risk/Return Profiler

What does a financial planner do?

It may seem obvious what an investment adviser does: they advise people on investments. However, a financial planner's job is not so easy to pigeonhole. Offering investment advice is part of what they do, but not the only part. As the title suggests, a financial planner helps people plan their finances.

One definition of financial planning is: "the creation, protection, investment and distribution of wealth". Essentially, a financial planner helps identify and quantify a person 's financial objectives, and then helps them to achieve those goals.

Take retirement planning. Many people 's retirement goal is to be able to maintain a reasonable standard of living in retirement. However, to make that happen, they need to have a specific plan to make sure they get there.

For example, what will they require to maintain the standard of living they want in retirement - an annual net income of $20,000, $20,000 or $25,000 in today's money? Then, what size nest egg will they need to generate that income, and how long do they have in which to build it?

A financial planner can help you find and implement the solutions to these and many other questions. Specifically, the planner will construct a personal financial plan tailored exclusively for you, your needs and objectives.

The plan will be comprehensive, covering a range of areas including some or all of the following: cash and debt management; tax planning; risk management (insurance); trusts and estate planning; investment planning; retirement planning.

Financial planning also needs to include teamwork, with the planner coordinating the delivery of various services for their client. This is similar to a doctor or GP. While a GP cannot be expected to specialise in every branch of medicine, they must be able to recognise where specialist treatment is required, so that a specialist can be brought in. However, the GP still retains overall responsibility for the health and treatment of the patient, just as the financial health of a client is the planner's responsibility.

Furthermore, clients need regular check-ups and reviews just as patients do. As a person's financial situation or objectives change, or as significant trends develop in the economy and investment markets, their financial plan will need to be monitored and reviewed. It is therefore important when looking for a financial planner, you choose one with whom you believe you can build a long-term relationship.

Finally, be aware that New Zealand Superannuation will provide you with a basic standard of living in retirement, but it won't provide for much more than the necessities. If you want more than that, you need to provide for it yourself. Seeing a financial planner is a very good place to start.

Contact a LYFORDS Adviser.
How to choose a financial planning adviser

Awards:
- Certified Financial Planner of the Year
- financialalert Advisory Practice of the Year