Financial planning isn’t just about retirement

In life there are plenty of ‘old wives tales’ that you’ll hear about. One we often come across is around financial planning: More specifically, that financial planning is only for those staring down the barrel of retirement. It’s something that might affect your parents, but not you right?

I often hear it described that financial planning is only about superannuation and insurance. But in reality that’s a myth; there’s more to financial advice than planning for retirement and it can be really beneficial to seek advice at much earlier point in your life.

Life events

All of us are going to experience a range of life events where having a financial plan would be useful. For many of us that can happen much earlier in life, for example, we often help clients with life events such as buying their first home. This is something that can seem quite daunting; especially in cities such as Sydney and Melbourne, even taking into account the current market situation. Other events such as marriage, having children, and changing jobs can always be better managed through a strong financial plan.

In reality, cash flow is something we all need to have a handle on. Being able to avoid living pay check to pay check can be a real challenge for some, so understanding where your money is going and being able to stick to a budget is a crucial part of the process. A financial planner can really help you set the right course to ensure this becomes a reality.

Unpredicted challenges

It’s also true that not all of life’s events are positive. Many of us will face challenging times at points in our life and it’s often well before retirement age. Illness, accidents, and divorce are all difficult circumstances for any individual to face.

This is where having a financial plan is really important. Working with a planner means that you have your own ‘personal CFO’ there to coach and guide you through the process of ensuring you can financially survive these challenges. This can extend to selecting other resources that you may need to talk to during this time, through a referral to an accountant, lawyer, or other specialist advisor.

Flexibility later in life

 When it comes to finance, it’s never too early to start. Ultimately the earlier you start building wealth, the easier it is to manage changes in your life. For example, building the right financial behaviours now can give you the flexibility to decide when you retire, rather than having to scramble later in life to live the lifestyle you want.

Including your superannuation and insurance in your plan is still important, but financial planning can involve so much more. It really is a case of living for today, while planning for tomorrow.

Tools designed for you

It’s important that when looking at financial planning, you look at the model that is best suited to you. So much of the process comes down to managing cash flow, so having a program that is flexible enough to move with your needs but also keeps you on track can make a real difference.

Our financial planning offering BeApt, is great starting point. It gives you the ability to track and manage your goals and objectives through a handy online tool, making sure you reach them. That is then coupled with a regular face-to-face catch up with your planner to look at your individual situation and assess the best path forward.

Whichever direction you take, it’s worth remembering that good financial planning can help you make great decisions for today and for tomorrow.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL 436121 ABN 49 159 583 847) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.