- You need to have a clear and detailed personal budget. Review your budget and identify how additional expenses such as life/disability cover or a retirement plan will affect your monthly savings plan.
- Determine some realistic financial goals. Is it life and disability cover or retirement and investment planning that you need to consider? Or, maybe it is all of them.
- Compose a list of your assets and liabilities, including a list of your current portfolio, such as investments and policies.
- Get your partner or spouse involved with the process.
- Include details of the income of both spouses. This can encompass future dreams and aspirations, such as buying a vintage car for weekend drives in the country or owning a holiday house.
- Be aware of the effects of inflation on market values, in particular with regards to your retirement planning.
- Consider the implications of tax. Advice from financial planners cannot be emphasised enough when it comes to the complex world of tax.
- When it comes to retirement planning, your retirement fund at work will not be enough. Seek financial advice to secure a comfortable retirement.
- Find someone who you can contact to prepare a detailed analysis and establish what the costs will be up front.
- Preferably work with a certified financial planner. It is a good idea to conduct a background check by asking for references before working with them.
Do you want to begin your 2015 financial year on a good note? Then what better time to review your financial plan!
A financial plan provides you with the financial security to overcome unforeseen events and map out a financial future for yourself. When creating a financial plan you need to identify key achievable goals that can advance your financial situation.
Here are 10 tips for improving a financial plan: