From resolutions to results: How financial planning with FDC Group will achieve your goals
Creating a financial plan is one of the most worthwhile new year's resolutions you can commit to.
At the risk of overwhelming the reader, may I suggest adding another resolution to the above, namely creating a financial plan (or reviewing your existing one).
Financial planning is defined as a process of setting financial goals and creating a strategy to achieve them. It involves assessing your current financial situation, identifying your short term and long-term goals, and developing a plan to help you achieve those goals.
This can sound complicated and for many, mention of long-term or short-term goals can cause us to postpone any decision and revert to focusing on what needs to be done today. Some are convinced that you must have money before considering financial planning, but I believe that everyone benefits from having a plan of some sort, whether it’s saving for your next car or for retirement. They do not have to be complicated, nor expensive.
There have been various surveys in Ireland and internationally showing that those who engage with financial planning have a higher value in savings, investments and pensions than those who don’t and, as importantly, are more likely to feel confident about their financial future.
My role as a financial adviser is to demystify some of the language around financial planning, breaking it into manageable items and helping you act on some of these.
You may not know what your financial goals are, or don’t have the luxury of thinking that far ahead but you probably do know what you would not like to happen. That’s a good start for any financial plan. Having a conversation with an adviser will help you identify what you would like to happen, even if you do not have the resources to put all in place currently.
For example, you would not want to struggle financially or risk your business were you to become ill and not be able to work, or worse, wouldn’t like your dependents to struggle financially in the event of your death.
For the aforementioned, a financial plan could involve putting in place adequate illness or income protection with life cover so if the worst happens then there is a solution in place to offset the loss of income. It may involve building short term savings to pay for external help until you are able to recover. Depending on your circumstances, your financial plan may be no more detailed than that.
You may have some short-term expensive debt that you would like to clear. Assessing your spending and focusing on accelerating the repayments or using some surplus savings earning no return to pay down this debt is financial planning.
You may not like the idea of not having enough income to enjoy life in retirement. Putting a retirement plan in place will go some way towards solving that problem. You may not be able to contribute much in your younger years, but having one in place is a start. Regular reviews of your plan in the future will nudge you towards contributing more when more funds become available and other financial commitments are reduced.
You might want to help the children financially to go to college, or maybe help them with a deposit towards a house eventually, so building up a savings plan for them over the long term is financial planning. Seeking a greater investment return than that available on deposit for your hard-earned savings is financial planning.
It is particularly important for those nearing or in retirement as one is not likely to be able to save as before. They may be unsure as to how much of their savings they can use to supplement the state pension. Some clients had a fear that their savings were not adequate and would run out, and were delighted when I confirmed they could continue to afford their lifestyle and not have to cut back.
Put simply, I believe financial planning is for everyone.
It can be tailored to meet your unique needs and goals and help you feel more in control of your finances and better prepared for the future. I urge those interested to seek out unbiased financial advice from our Financial Advisors at FDC Group. Your future self will thank you!
Happy New Year from FDC Group.
To enquire about any of our services, please visit www.fdc.ie
