7 Things Your Financial Planner Should Be Doing

Client Care Financial Planners
Posted On 2021-01-25 Author: Carli Grobler

There is a common misconception that financial planners simply tell their clients which insurance policy suits them best and acts as their middleman. This is not the case and when it comes to a lifestyle financial planner the differences are even more stark. In fact, you’ll find that quite often a lifestyle financial planner might advise against policies when considering factors such as relevance and what stage of life you’re in. Does every 20-year old need a life insurance policy? No. Does a 20-year old entrepreneur with a successful tech startup need a life insurance policy? Maybe.

So, if your financial planner isn’t just pushing policies - what on earth should they be doing? We’ve put together seven things that a lifestyle financial planner should be doing to help you on your financial journey.

1. Help you clarify and achieve your hopes and dreams

This really is the fundamental purpose of a lifestyle financial planner. Not only do they serve as financial experts, but they also make sure that your money is getting you to where you want to be! That starts with helping you identify your life goals and dreams. Some people want to travel the world as a digital nomad and others dream of having a hobby farm - whatever your dream is, a financial planner should be helping you to achieve them through a carefully-considered financial plan. Which brings us to...

2. Provide an easily understandable financial plan

The key part here is that your financial plan should be easily understandable. Now, we know that a deep-dive into economics, markets, and why the gold price is up or down is not for everyone, and that’s why it’s important to consult a financial advisor - so they can worry about that part. But what is key to your success, is that you understand the plan and the role that each component plays. For that, your financial planner should present you with a plan that is easy to comprehend, even if the inner-workings are complex.

3. Coach and educate you to make the right financial decisions

You know how when it’s close to Black Friday and your email inbox blows up with “incredible savings” and “crazy deals”? Well, we wish that an equal amount of emails would come flooding into your inbox to say “you do not need this”. Too often, we let our emotions get in the way of smart financial decisions. A financial planner is a great sounding board for when that itch to spend starts! Now, we’re also not saying you shouldn’t have nice things, but it’s important to remember that you may need to make trade-offs if you want that shiny new car or smart TV.

4. Be there during major (or minor) life decisions

Like a good sibling or best friend, your financial planner should be there for you whenever you need to talk about life decisions. Whether it’s something big like buying a house, or something small like which car to buy, your financial planner can help you lay out the logic for decisions. And more importantly, they should tell how this may affect your financial plan!

5. Manage all your financial needs under one roof

When looking for a home, do you look for a place that has everything you need in one building, or do you find a bedroom here and a bathroom there? Your finances should be no different. Your financial planner should be your one contact point for all of your policies, investments, and insurance so that they can get a clear picture of ALL of your finances. This helps them to advise you better and gives you peace of mind.

6. Give clarity on how to build wealth

There is a big difference between rich and wealthy, and your financial planner should be helping you to understand that. Building wealth is a life-long habit which can be learned. Your lifestyle financial planner should be spending time on coaching you and educating you about financial literacy. Even if you’re not really a numbers person, your planner should be helping you understand the basic principles of building wealth.

7. Manage your money the same way they do theirs

Your financial planner should never advise you to do something they wouldn’t do if they were in your situation. As we saw in Point 1, not everyone’s dreams and plans are the same but your financial planner should always have your best interests at heart and act in your (and your life goals’) favour.

These seven points highlight the basic things your financial planner should be doing to make your finances work and help you on the road to living your dream life. So, if you’re looking for a financial planner that does all these things, get in touch with us here to start your financial journey with Client Care!

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