By: Peter Horsfield
Successful people realise that you don't have to know it all to achive all your goals in life.
If you have decided to attempt to achive financial independence yourself, at least be sure you are not sacrificing more important matters in the long run. i.e. health, relationships, career, inner peace.
The rise of the internet has given us access to an incredible wealth of information, however just because we can access infomation eg health remedies, ask yourself is your self diagnosis better than seeing your doctor for a professional diagnose and recommendation?
As Certified Financial Planner I am both university qualified have continued with post specialist studies, exams, and industry experience. Most importantly those I choose to help achieve their goals sooner.
Your finances cannot be a hobby, or a side interest, because the decisions you make effect both you and those important to you.
If you value your time and are more interested in the results then start interviewing the best (experienced and qualified) professionals to help you.
The reason for creating an action list or game plan is five fold:
Know where everything is in your financial life.
Identify your weaknesses and strengths then create a game plan and action list of activities. Doing so heightens your chance of success to achieve your goals.
Review your activities on a regular basis and allow small tactical changes to be made. Again heightening one's chance of success.
Hightened self confidence. Having the evidence knowing all of your finances and financial needs have been considered and are being managed optimally
Improve your quality of life. Wealth is more than money, wealth involved having more time, fewer financial worries and participating in more of the things that only we can do in our lives that have the greatest impact i.e. health, relationships, contribution, experiences, etc.
Risk management/insurance coverage (appropriate levels of cover) Life insurance (for death), Total and Permanent Disability (TPD) Insurance, Income Protection (for income continuation), critical illness (for life threating events). General insurances including Building & Contents insurance, health insurance, car insurance, travel insurance, landlord insurance (for investment properties)For business owners, personal indemnity, key man insurance, professional indemnity and more).
Cash flow assessment and budgeting (emergency funds, operational accounts, debt servicing, income & expense planning, capital needs for upcoming big ticket expenses, charitable giving, education expenses and more).
Debt management and reduction (non-deductible debt and deductible debt, accelerated loan repayment strategies, competitive interest rates, using low cost and appropriate loan products and more).
Investment returns (types of returns: annualized, net of fees, pre/post tax, PE ratio’s, internal rates, ROI, risk adjusted, real return and more).
Bond & share valuation calculations (capitalized earnings, dividend growth, risk free return, CPI hedged, inflation linked, government, secondary market, IPO valuations and more).
Investment strategies (asset allocations, reweighting benchmarks, dollar cost averaging, dividend reinvestment, active vs. index investment strategy, direct vs. managed, asset class performance, drawdown strategies and more).
Tax planning (legal tax minimization options, entities, changing legislation, tax rulings, depreciation schedules, buy vs. lease, deductible expenses, capital gains, carried forward losses and more).
Estate planning (strategies, positions of responsibility, entities, trusts, asset disbursement, beneficiaries, taxation, minimising legal contest, charities and more).
Projections (investment portfolio assessment to funding lifestyle needs, disability plans, tax impact, needs on retirement, debt reduction, savings plans and plans for large expense items and more).
Implementing the plan (time investment, documentation preparation, applications, co-ordination of advice from specialists i.e. accountants, solicitors, loan brokers, banks, life insurance brokers, online general insurance sites, investment advisers and more).
Review and monitoring progress (plan require regular review, changes, updates due to changing external circumstances events in markets, economies, personal circumstance’s and legislation changes.
New products become available, and old products become obsolete. So making the time to regularly review and benchmark your progress in relation to your goals and implement proactive tactical changes is essential if you are to achieve your goals sooner at less cost and with greater self confidence.
View our Disclaimer