Here’s Why You Need A Financial Planner!

As you reach different stages of your life you identify new goals for your savings. Whether you’ve decided it’s time to purchase a car, to start saving for your first home, or you want to plan for retirement, there comes a point where taking control of your finances becomes a priority.

When it comes to financial matters many people find it confusing to understand and stressful to manage. It can be easy to feel like you are treading water, or making little progress, and furthermore, it can be tricky knowing who to rely on when seeking out assistance.

To start with, we can ease your confusion a little by telling you that if you are unsure who to reach out to for help, a financial planner is your port of call. 

What does a financial planner do?

Advantages of using a financial planner?

Why are verifyabl financial planners different?

How are financial planners paid?

What does a financial planner do?

A financial planner is a finance professional that specialises in helping you have better control over your money to achieve your goals, and to have a stable financial future.

People who are starting to identify large savings goals benefit from talking with a financial planner as they will spend the time to understand your goals, and help you implement strategies to achieve them. You will also be provided with the assistance needed to fully understand your current financial situation and saving ability, and begin to lay the groundwork for your future. 

Your financial planner will help you reduce risk, gain wealth overtime, initiate investments, and provide tailored solutions and ongoing support. Ultimately, you get given all the tools you need to achieve your goals, and operate more confidently with your finances than you might have otherwise.

Advantages of using a financial planner?

The main benefits of engaging with a financial planner is to have an objective third-party that can offer you unbiased advice, remove emotion from decision, and can help hold you accountable to your goals.

Your financial planner can keep you up-to-date with all changes in the industry that may impact you, and help you remain agile in response. This is particularly valuable when it comes to investment, as you must pay attention to taxation, and new investment opportunities are constantly appearing; all of which they can invest in on your behalf to take the stress and emotion out of the process.

Furthermore, you are put in a better position to achieve your goals faster, set yourself up for a more financially comfortable future, and provide a better future for your children.

Why are verifyabl financial planners different?

The reason verifyabl financial planners are different from regular financial planners is that they are tailored to you. The professional that you are recommended will be the best fit according to the details you provide us with. Our planners are subject to strict requirements and quality checks to ensure they are performing their best, which makes them verifyabl-approved.

Each verifyabl-approved professional has all the correct licenses and certifications, has a reputation for great service, and is rated by other verifyabl users. Our planners are on verifyabl because you said they should be; making verifyabl financial planners the best in the business.

With verifyabl financial planners, you are guaranteed a smooth and fast process, which means less weight on your shoulders. You receive a call from your personalised professional to organise a meeting, and they facilitate the rest. The planner takes the stress out of managing your finances, and we take the stress out of finding a financial planner. Having control of your finances has never been easier.

How are financial planners paid?

There are a few different models for payment of financial planners, and the professional is required to outline to you which method they operate with; so ensure you are clear on what their payment model is.

The four types of payment models are commission, fixed, portfolio-percentage & performance-percentage.

Commission

Financial planners who use the commission model earn their money by selling you products. Their earnings are based on a percentage of what you pay for the financial product. However, this method is not as popular as there are limits on which products commission can be earned from, with superannuation products and new investments being off-limits since 2013.

The benefit to this model is that the professional is encouraged to provide you with the best products, otherwise you won’t purchase and they won’t make money. However, you will need to place this trust in your broker, so it is important to find a professional you can rely on.

Fixed

The fixed pricing model means that all services provided by the financial planner are sold based on a flat fee. Regardless of the value of your assets or the price of the products sold to you, you will be charged the same amount as everyone else. However, there are still varying prices for different services.

This is a great method for those who like to be aware of how much they are spending for their financial services, but can be an issue for others who are turned off by a large sum upfront.

Portfolio-Percentage

Portfolio-percentage pricing models are common in Australia and can be a great method depending on the individual and the value of their assets. Essentially, the financial planner earns a percentage of your asset value, so even if it is a fixed percentage an individual with higher value assets will pay more for the service. This does mean that the portfolio-percentage model does seem more attractive to those with lower value assets.

This method is often preferred as it inherently motivates the financial professional to increase your wealth since an increase in value means they earn more also. However, the professional will earn a good amount on high value assets regardless, so it is important to ensure you find a trusted professional you can rely on.

Performance-Percentage

Financial planners can utilise a performance-percentage model which means the professional is paid a small fee on an ongoing basis, but their earnings have the potential to increase based on performance. This is often measured based on an agreed benchmark. 

The performance-percentage method can be a beneficial one because it is results-focused, and therefore there is higher motivation for the professional to deliver. However, not all of the services a financial planner provides are results-focused, so it isn’t always a fair method for all parties. 

Finding a financial planner that you feel you can trust, and that fits your needs, can be tricky and a time-heavy undertaking. We are talking about your financial security and future, so it is understandable that trusting a stranger can be difficult, and taking the leap into the unknown is overwhelming. However, verifyabl has made the process simpler, easier, and more approachable than ever before so that you can trust us to look after you and your family, and live worry-free.

Enquire now & we’ll match you with your personalised professional within 48 hours.