Managing your money better to meet your financial goals can be a challenging task, especially if you have no background in finance and limited knowledge of financial planning. That’s why the services of a financial planner can be invaluable.

A financial planner is a professional adviser, trained in finance and financial planning, who helps individuals and businesses make informed financial decisions. They provide valuable insights and advice on how to manage money, invest wisely, and plan for retirement. They’ll also show you how other assets can help you meet your financial goals.

Whether you are self-employed, employed full-time, a freelancer or a contract worker, a financial planner can help you make smart money choices that have positive results in the long term.

Advantages of working with a financial planner

• Comprehensive financial planning
  A financial planner can help you develop a comprehensive financial plan, which includes creating a budget, managing debt, investing for retirement, and planning for unexpected events like illness or loss of income. Some financial planners help you with every aspect of your financial life – including savings, investments, insurance, retirement savings, university savings, taxes, and estate planning. Others specialise in and sell investments, insurance and other financial products. Choose a financial planner whose main area of focus matches your needs.
  
  
• Investment management
  Investing can be an overwhelming process if you are new to it. A financial planner can help you develop an uncomplicated investment strategy that matches your financial goals and risk tolerance. They can also provide ongoing investment management services, helping you monitor and adjust your investments as needed.
  
  
• Tax planning
  Tax planning is an essential aspect of financial planning that is too often overlooked. A financial planner can help you understand how different financial decisions can affect your tax liability and help you develop a tax-efficient investment strategy. They can also tell you what tax deductions you are eligible for.

• Retirement planning
  Retirement planning is another critical aspect of financial planning that you may struggle with. A financial planner can help you develop a retirement plan based on your financial goals, retirement income sources and expected expenses. They can also suggest investment strategies and tax-efficient withdrawal strategies to help you make the most of your retirement savings.

How to pick the right financial planner 

With so much at stake, choosing the right financial planner is crucial. Take the time to find someone who understands your unique financial situation, who will help you achieve your goals and give you peace of mind, knowing that your finances are in good hands. These 6 tips may help in your search:
 

• Determine your financial goals
  Identify your goals over the short, medium and long term, so that you can look for a financial planner who has experience in the areas that are most important to you.
  
  
• Check credentials
  You want a financial planner who holds a professional certification. All financial advisers in South Africa must be licensed as an authorised financial services provider by the Financial Services Conduct Authority (FSCA). The Financial Planning Institute of Southern Africa (FPI) also offers accreditation for financial planning. These credentials indicate that the planner has met certain educational and ethical standards.
  
  
• Check their experience
  Look for a planner who has experience working with clients in situations like yours – for example, if you’re planning for retirement, you want to work with a planner who specialises in retirement planning.
  
  
• Consider their fees
  Financial planners charge at different rates. Some offer hourly fees, while others work on flat fees or commissions. Make sure you understand how the planner will be compensated and how much it will cost.
  
  
• Ask for references
  Ask for references from current or previous clients, so you can get an idea of how satisfied they are with a financial planner’s services.
  
  
• Trust your instincts
  It’s important to work with a financial planner you trust and feel comfortable with. If something feels off or you’re not comfortable with the planner, look for someone else.

Questions to ask a financial planner

Before consulting a financial planner, here are some of the key questions to ask that will help you make your choice:

• What experience and qualifications do you have?
• Do you specialise in a particular area of financial planning?
• What is your approach to financial planning and investing?
• What are your fees and how are they structured?
• How do you assess and manage risk?
• How do you stay up to date with changes in the financial markets and tax laws?
• How often will we meet to review my financial plan and investment portfolio?
• Can you provide references or testimonials from current or previous clients?
• How do you incorporate my financial goals and values into your planning process?
• How will you communicate with me and keep me informed about my financial situation?

Maximising your wealth by collaborating with a financial planner

By working with a financial planner, you can develop a sound financial plan that aligns with your goals and helps you achieve financial success. It’s the best way to invest in your future and take care of your family’s financial needs. Nedbank can help, giving you access to trusted advisers who can guide you in every aspect of your financial planning.