Financial Planning is a Step in the Right Direction

February 26, 2021

Natallia Smith
(TruWealth Advice)

 

Security, feeling in control and financial independence are strong motivators for the majority of single women. Often divorce, or the death of a partner, threaten the very basis of everything we have tried to build over many years. Other major life changes, such as having children, illness, the loss of our parents, or simply getting older, also cause us to fear the loss of life as we know it. We become vulnerable. And our safety and overall wellbeing are placed in jeopardy.

Stepping forward is about making the right choices. The right choices for YOU.

None of us experience the same lives. We are all patterned by different upbringings, personal and financial situations, beliefs, relationships, friendships and societal influences. A major upheaval can be overwhelming and often, we don’t know what the next step is, let alone how to take it.

Who’s on your team?

When life is tough, or scary, or daunting, it’s important to build a team of support people to help guide you through the darkness. Whatever your belief systems, there are people who will have your back:

  • good friends you trust

  • a family member who understands your background

  • a psychologist, doctor, medical or alternative therapy healers

  • mediator, lawyer or other professionals depending on your individual circumstances

They will help you figure out what’s important, clarify your goals and work through the steps you need to create the life you want to live. A life that serves you well. 

This is where Financial Planning comes in

A change in financial circumstances is always unsettling. You may suddenly be single and raising children on one wage. You may have received a significant inheritance. Post-divorce financial settlement may make you feel insecure, whether you have lots of money or very little.

Generally speaking, most women who face a change in circumstances worry about whether they have the right knowledge, understanding and experience to make strong effective financial decisions that will work for them to safeguard their future.

Working with a financial planner allows you to build knowledge and understanding

A good, caring and experienced financial professional will give you a safe space to openly and honestly discuss:

  • your dreams and goals

  • fears

  • past experiences

  • financial habits and beliefs

  • your future

7 Steps to Financial Clarity

Not knowing how to best manage your financial situation can be overwhelming. But the actual process is quite simple. Here’s how we get to know you, understand your financial position, and help create the best plan for your future.

Step 1: Presentation of Client Data

This is not just financial data – we also want to know who you are, what makes you tick, your passions, beliefs and dreams. We will discuss your financial position and risk profile. But there’s more to you than the money (or lack of money) in your bank.

Step 2: Income Tax Planning

Here, we look at your current tax liabilities, income needs and savings potential. Then we explore potential ways to effectively reduce your tax both now and after your financial plan is in place.

Step 3: Superannuation and Retirement Planning

Again, this is not just about money. It’s important to know what you want your retirement years to look like, and plan accordingly. At this point, we plan to ensure that your retirement funds are in the best position to support your needs at this stage of your life.

Step 4: Investment Planning

If you have existing investments, we conduct a complete review, considering whether they will serve to meet your short and long-term goals, and make any necessary recommendations regarding your portfolio. If you’re new to investing, we construct a portfolio that will best benefit your future goals, retirement plans and risk profile. This stage  involves lots of research at our end, and we will discuss all your options, fees and associated costs. Your decisions will be informed and educated. Remember, you are in control.

Step 5: Risk Management and Insurance

Unexpected events happen in life – and it’s smart to be prepared for them. We analyse your personal, family and work situation, then recommend the most suitable insurances to protect you and your loved ones from the risk of unforeseen occurrences.

Step 6: Other Strategic Considerations

Everyone’s circumstances are unique. In creating a financial plan to build and support a healthy, happy future, we need to consider all the financial factors in your life, such as:

  • Centrelink

  • Debt

  • Cash flow

  • Budgeting

  • Estate planning

Step 7: Modelling Capital and Cash Flow Projections

This is the moment where we check (and double check) our assumptions and recommendations. We use software to explore different scenarios so we know that we are presenting you with the best options for your individual circumstances. We analyse all the results, then create and discuss strategic options which take into account all aspects of your financial situation and the lifestyle you wish to create.

Regardless of your financial situation, seeking financial advice is a positive step in the right direction. Safety and security, financial independence and feeling in control of your financial future are blessings that can be achieved with a balanced view of your financial situation and the right people providing the support you deserve.

If you would like to seek financial advice, don’t hesitate! It’s an empowering and amazing step to take.

Contact TruWealth on 03 8648 6534 or email contact@truwealthadvice.com.au