Our financial planning process

Our financial planning process involves six steps:

1. Determine your current financial situation
2. Discuss your goals, timelines and risk profile
3. Identify issues that might change your circumstances
4. Prepare written recommendations
5. Implement the recommendations
6. Regularly review your plan

1. Determine your current financial situation

We work with you to obtain a complete picture of your current circumstances and needs. In this stage we ask a lot of questions such as what are your assets and liabilities, your income and expenses, your family situation, what investments, superannuation and insurance you have. At this stage, we discuss all fees and charges with you.


2. Discuss your goals, timelines and risk profile

Goals: how will I be spending the money I'm investing today?
Most investment goals are fairly straightforward, like accumulating the deposit for a house, saving for your children's education, or building your own retirement fund.

Other reasons for investing might include providing an estate for your children and grandchildren or reducing the amount of taxes you owe. Many people have more than one goal at the same time.

Timeline: how long before I'll need the money I'm investing?
The number of years you have to build your investment before you begin spending it is called your time horizon. Typically, a longer investment horizon means you can expect to accumulate more and can afford to be more aggressive in choosing investments. That's because a long time period helps even out sudden shifts in the value of your investment that are most common with an aggressive investment.

The share market may have short-term declines, but over the long run, say ten years or more, shares have historically outperformed other investments, such as bonds or cash. Saving for the deposit on a house could occur over a relatively short time horizon, perhaps five years or less, but investing forretirement may involve a much longer time horizon – 20 years or more, as well as the years you spend in retirement.

Risks: are they consistent and are you comfortable?
How you feel about risk depends on several factors including your age, how much you have to invest, your job, your total annual income, your financial obligations, your time horizon, and your reasons for investing. Your personal attitudes will also affect your risk tolerance. Are you uncomfortable with change? Are you comfortable generally taking large or small risks?

Finding your comfort level regarding risk is important.

The right investments for you are those that have potential rates of return that can best help you meet your investment goals and have risk levels with which you are comfortable.
 

3. Identify issues that might change your circumstances
As your age and the circumstances of your life change, your reasons for investing will change, too. Your investment plan should be flexible enough to accommodate shifts in your goals.

Do you want to start a family in a few years? Is there a possibility you will be retrenched? Do any of your objectives conflict? We will discuss your choices with you.


4. Prepare written recommendations to suit your needs and lifestyle
With this information we now research and prepare an individual strategy specific to your lifestyle and objectives.

This is a written plan, setting out our investment recommendations and the reasons for each recommendation, the risks involved and the costs and fees.


5. Implement the recommendations
You will have as much time as you need to review and discuss the plan. Once you are happy with our recommendations, we will implement them.


6. Regularly review your plan
Your financial plan should be a living dynamic document that adapts to change.


We contact you for regular reviews to ascertain how the plan is progressing and that it accurately reflects any changing circumstances such as change of employment situation.