The financial planning process

In talking to some colleagues and clients I have been told that one of the complaints people they know have is that financial planners only talk about insurance and shares. These products make about PART of the tool kit that provides for both wealth protection and wealth accumulation.

Why do I provide risk management advice as part of my advice process? Because I have seen situations where a good wealth accumulation strategy has been working well only to be torpedoed by something happening to the client, ceasing their income and causing wealth accumulation strategy to fall in a heap as they no longer and feed the investments to help them grow.

Why do we cover all types of investments in our advice? There are two main ways to accumulate wealth sustainably. They are, investing in shares and investing in property whether directly or through some sort of managed fund or property trust. The aim being to build an investment portfolio that can at some stage replace your personal exertion income with income from the investments. Many don't have a portfolio of sufficient size to produce sufficient income, therefore they have to sell down their investments to help fund the shortfall. If you just have a direct property portfolio it means that you have to sell a whole property, often trigerring significant capital gains tax in one hit. With the flexibility of other investment options including property via property trusts you can sell down part at a time only freeing up the amount of money you need not a lot more than you need.

That is why when we structure portfolios we look at how we can achieve the wealth accumulation goals but provide enough felxibility for different stages of life as well.

Seeking advice from a suitable professional adviser will enable you to make informed and educated decisions about your financial future.

Regards


Damian Ebzery B,Bus M.Bus AFPA ASA