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Financial planning plays a pivotal role in ensuring a secure and prosperous future, and at the heart of an effective plan is the expertise of a skilled planner. Understanding the role of a financial planner in Melbourne is crucial for navigating the complexities of wealth management.

What is the role of a Financial Planner

The primary objective of a financial planner is to assist clients in achieving their financial objectives through comprehensive planning and strategic advice. Financial planning is a strategic process that involves assessing one’s current financial situation, setting realistic and achievable goals, and devising a comprehensive plan to reach those objectives. Financial planners are registered professionals equipped with the knowledge and skills to guide individuals and businesses toward financial success.

Financial Assessment and Goal Setting

Before working on any plan, financial planners will conduct a meticulous assessment of a client’s financial landscape, and what they would like to achieve from the financial planner’s services. This involves a thorough analysis of income, expenses, assets, and liabilities. Does the client want short term assistance trying to find the best insurance deal? Do they want ongoing advice on investments? Collaborating closely with clients, financial planners help define short-term and long-term financial goals, laying the foundation for a personalised and effective financial strategy.

What defines general vs personalised financial advice?

General Financial Advice:

General financial advice is designed for a broad audience and is not tailored to the individual needs or circumstances of a specific person. It provides information and recommendations that are applicable to a wide range of people facing common financial situations. It typically imparts knowledge about financial concepts, market trends, or common investment strategies without considering individual factors.

An example may be – an article explaining the basics of diversification in investment portfolios applicable to wide audience.

Personalised Financial Advice:

Personalised financial advice is specifically crafted for an individual or a defined group of individuals, considering their unique financial situation, goals, and risk tolerance. It goes beyond general principles, delving into the specific details of an individual’s financial landscape. It considers factors such as income, expenses, assets, liabilities, and personal goals. Personalised advice involves a deeper analysis and may include tailored strategies for investments, retirement planning, tax optimisation, and other financial decisions based on the client’s specific circumstances and after extensive consultation between them and a financial planner.

For example – a financial advisor may suggest a higher risk super fund strategy to client A because of their income bracket, young age with 30 years until retirement and personal tolerance for higher risk. Meanwhile, they may suggest to client B a lower risk strategy that reduces the impact of market volatility due to them being 5 years from retirement.

A financial planner providing personalised advice is often subject to more stringent regulatory requirements. Due to their ability to promote specific financial products, Melbourne financial planners providing personal advice must be registered and regulated to ensure they are working within their client’s best interests.

Investment Management

One of the core competencies of a financial planner is providing expert advice on investment strategies. This process identifies an individual’s financial goals and allocating resources to various assets to achieve those goals. This can range from recommending specific investment vehicles to advising on asset allocations and portfolio diversification.

The investment advice provided by a planner will consider a variety of factors including income, age, risk tolerance, tax requirements, family, and dependants, as well as more subjective considerations such as what percentage of income they would like to invest, and what they would like to achieve from the investment. The aim to optimise returns while carefully managing risk.

Retirement Planning

Preparing for a financially secure retirement is a significant aspect of a financial planner’s role. By estimating retirement expenses, analysing potential income sources, and creating strategies to ensure a comfortable retirement, planners guide clients toward a future free from financial worries.

A financial planner can help you organise superannuation strategies to match your retirement needs, including opening a self-managed super fund (SMSF)

Risk Management and Insurance

Financial planners assess and manage financial risks by recommending appropriate insurance coverage. This includes life insurance, health insurance, disability insurance, and other forms of protection against unforeseen events. Unexpected circumstances can be a large out-of-pocket expense, so planners can help assess the appropriate insurance cover for your budget and circumstances.

Regular Monitoring and Adjustments

A financial plan is not static; it evolves with changing circumstances, market conditions, and financial goals. If a client choosing to receive ongoing advice, a financial planner plays a vital role in continuously monitoring their financial situation, making adjustments as needed, and ensuring the financial plan remains aligned with the client’s objectives, even as they grow and change.

Do you need a financial planner in Melbourne?

Hiring the services of a financial planner at Centre Of Wisdom provides you with a qualified financial partner for everything finance related. From investment properties to making sure your taxes are done correctly and on time, Centre of Wealth is a name you can trust for tax advice in Melbourne.

Get in contact today via the contact page on our website! Or call either of our branches:

Upper Ferntree Gully: 03 9758 1202

Bentleigh East: 03 9570 4565