Feb 21

What is a Financial Advisor and how do they work?

Warwick Wealth Gauteng Regional Wealth Specialist, Natalie Wood, discusses the importance of Private Client Financial Planning and how Warwick Investment Specialists holistically advise and guide clients on this journey.

Understanding the importance of financial planning requires an understanding of what a Financial Advisor is and how a Financial Advisor works. A Financial Advisor is a professional who is remunerated to provide advice and holistic financial planning to clients. A Financial Advisor should be considered your partner in guiding and advising you on your financial planning journey, utilising their expertise to assist in creating a plan for your finances. A Financial Advisor offers advice that a client is to implement across the breadth of their life, from budgeting in the present to retirement saving in the long term. As a partnership, you and your advisor refine both your short- and long-term goals, with your Advisor constantly advising and assisting you to stay on track to achieve these goals. Of importance and value is the role of the Financial Advisor in assisting the client with an understanding of the importance and benefits of financial planning.

Importance and benefits of Financial Planning

There are countless advantages and benefits of financial planning that come immediately from having a Financial Plan. Below are several indicators to the importance and benefits of Financial Planning:

  1. The process of Financial Planning assists you in setting your goals:

Financial Plans help individuals create and set goals to work towards. Goals are what give people direction and purpose in their lives. Here are a few recommendations for setting and achieving solid financial goals:

  • Personalise your goals
  • Make educated goals
  • Review these goals regularly
  • Set smart goals and visualise these goals
  • Financial Planning provides security to your family:

A primary objective is to ensure that your family always has enough money to meet their basic needs. Building this kind of financial security takes some work and time, but by living within your means, building short-term savings, ensuring you have good insurance and investing for the future, you have set a solid foundation for security.

  • The financial planning process will enhance your financial IQ:

The first step to financial planning is to define your financial goals, together with your Financial Advisor, for short-, mid-and long-term. For each financial goal, your Financial Advisor assists and advises on a suitable investment. This process of creating and achieving your financial goals will significantly enhance your financial understanding.

  • Financial Planning will manage your cashflow effectively:

As your financial IQ increases, your awareness of saving and spending will also significantly improve. You will gain the natural tendency to avoid all the extra expenses that life imposes.

  • Financial plans provide a guide for action and decision-making:

Financial Plans can direct actions towards desired outcomes.

  • Financial Plans help set performance standards:

Planning defines desired outcomes as well as milestones to define progress. These provide a base for assessing when plans are progressing or when plans need correction.

  • Financial Planning is aimed at achieving and living your best retirement life:

Retirement planning is one of the major key factors in your financial planning. The most important key to effective retirement planning is to start investing as early as possible, ensuring your investment is invested for the long term, benefiting from and enjoying the magic of compounding on your investment.

In summary, a financial plan allows you to begin with the end in mind. A financial plan provides individuals with the proper perspective to balance their current goals and needs with future goals and needs. A financial plan helps you focus your attention on both the present and the future.

At Warwick Wealth, our Investment Specialists adopt a holistic approach to each private client’s wealth objectives, assisting each client with their unique financial plan. Our Investment Specialists have an in-depth knowledge of a particular area, equipping them to offer expert advice in achieving financial goals both for the present and future, advising and guiding clients on their journey to financial success.