Definition

Financial planning is a generic term used to describe a variety of functions and services. Put simply, financial planning is a professional discipline that helps people attain their financial goals and objectives. This is achieved through a thorough analysis of your financial circumstances, and the development of a long-term financial planning strategy.

Financial planning takes a holistic approach, taking into account your current situation and needs (eg. your assets and liabilities) and your future objectives and goals, in order to help you make the most of your financial situation.

Benefits of Professional Advice

Your wage doesn't have to be the only income you earn. Financial planning can help your hard-earned money work for you – for example, through wise investment decisions.

Sound financial planning is necessary if you want to enjoy a secure financial future – no matter what you aim to achieve in life, and no matter how much money you earn. Financial planning isn’t only for the wealthy, but it is an effective means of creating wealth.

The growing legislative complexity and the rapidly changing financial markets mean it’s becoming increasingly difficult to make the right financial choices without professional advice. Even individual investors with industry knowledge who regularly follow the stock exchange, find it time-consuming and incredibly challenging to keep up-to-date with the constant changes.

Developing a relationship with a financial adviser can, however, bring together your knowledge with that of a professional who spends their time focussing on how to make the most of the changing markets.

Charter Financial Planning’s financial planners receive weekly communications that introduce new opportunities and review the changes in the financial environment. Our research group is comprised of a team of dedicated and experienced professionals who analyse financial markets, investment performance, legislative changes and the overall shifts in the financial services industry.

The Process

The financial planning process begins with defining your needs, objectives and current situation. Once these are established, your financial planner is able to devise a strategy to meet your goals.

Upon your approval, a statement of advice will be developed recommending a selection of financial products and solutions (for example, managed funds, cash management account, income protection or superannuation) within the scope of platforms/products available for planners to recommend.

Charter Financial Planning has a comprehensive and methodical system for providing you with well-researched financial solutions.

Payment Options

In return for giving advice, financial planners receive an income by:

• commission or brokerage fees - where they receive an initial payment and ongoing fees from the fund manager or life company;
• charging a fee for service - whereby you pay an hourly rate (In this scenario, commission and brokerage fees may be rebated to your investment. Speak to your financial planner for clarification.);
• asset-based fee structure – where the fee is charged as a percentage of the funds invested; or
• a combination of the above.