Your Financial Plan


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Financial planning process for individuals

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  • The areas that I would like to cover are 1) the importance and need for financial planning 2) What can I as an accredited financial planner with PFA offer you, 3) Briefly the structure of the planning process, 4) Broadly what should the structure of “your plan” be and if more detailed is required by you the planning steps in more detail. I as a financial planner must be attuned to what your financial needs and dreams are and at the same time it is my obligation to ensure that you are aware of the implications of your present financial plan as ell as any financial plan that I propose. From the start an integral part of financial planning is making sure that you are also aware of the financial planning service that I and PFA can provide you bth now and in the years ahead. Let us firstly look at need for a plan.
  • While the stages in our lives determine the "course" of the journey, the events that befall us while on that journey are what makes it what it is - life.
  • At personal financial advice we have the following core
  • Thank you once again for confirming the appointment Mr./ Mrs./ Ms X. Before I proceed with our discussion today it is crucial that in the next 15 minutes I provide you with insight and context as to what we at PFA mean by “your” life plan.
  • Your Financial Plan

    1. 1. … .
    2. 2. What we are going to discuss … Why do you need a plan? What does Old Mutual Personal Financial Advice (OMPFA) offer The planning process The elements of a financial plan Who are we?
    3. 3. Why do you need a plan? “ Financial planning should, simply, be about strategies that create, preserve and grow your wealth based at every point on your needs” – Bruce Cameron “ You are flying blind if you fail to draw up a plan” – Personal Finance
    4. 4. Why do you need a plan? Life stages … Roll mouse cursor over an appropriate stage to view more.
    5. 5. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>Young </li></ul><ul><li>Need to travel </li></ul><ul><li>Few worries </li></ul><ul><li>Renting accommodation </li></ul><ul><li>First job </li></ul><ul><li>Entertainment important </li></ul><ul><li>Paying off study loans </li></ul><ul><li>Financial needs </li></ul><ul><li>Saving for a car </li></ul><ul><li>Saving for overseas holidays </li></ul><ul><li>Disability … I will never become disabled! </li></ul><ul><li>Retirement … too far away . . . why worry ? </li></ul>Life stages … Single and starting out Go back to Life Stages map
    6. 6. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>Need to travel </li></ul><ul><li>Planning to get married </li></ul><ul><li>Moving up the corporate ladder/considering own business </li></ul><ul><li>Purchase a lock up and go flat/simplex </li></ul><ul><li>Need n ew car </li></ul><ul><li>Entertainment important </li></ul><ul><li>Financial needs </li></ul><ul><li>Save for house </li></ul><ul><li>Save for new car </li></ul><ul><li>Control debt </li></ul><ul><li>Protecting assets </li></ul><ul><li>Disability … my company disability is enough! </li></ul><ul><li>Retirement … my company pension is enough … why worry ? </li></ul>Life stages … Single and established Go back to Life Stages map
    7. 7. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>Build assets together </li></ul><ul><li>Bachelor ’ s pad to o small , need a house </li></ul><ul><li>Combined expenses & income </li></ul><ul><li>New additional “serious” obligations </li></ul><ul><li>Second or third job </li></ul><ul><li>Thinking about children </li></ul><ul><li>Financial needs </li></ul><ul><li>Deposit for house </li></ul><ul><li>Need two cars </li></ul><ul><li>Holidays </li></ul><ul><li>Debt is now a concern </li></ul><ul><li>Disability … is my company disability enough? </li></ul><ul><li>Protection on death . . . i s my group life enough? </li></ul><ul><li>Retirement … is my company pension enough? </li></ul><ul><li>Educating my child </li></ul>Life stages … Married Go back to Life Stages map
    8. 8. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>Young children </li></ul><ul><li>Medical costs increase </li></ul><ul><li>Demand on disposable income </li></ul><ul><li>What happens to my pay check each month? </li></ul><ul><li>More obligations </li></ul><ul><li>Need for financial security </li></ul><ul><li>Less sleep </li></ul><ul><li>Financial needs </li></ul><ul><li>Concern for protection of/for </li></ul><ul><ul><li>Self (life, disability & medical) </li></ul></ul><ul><ul><li>Assets </li></ul></ul><ul><ul><li>Children; spouse </li></ul></ul><ul><ul><li>Saving for a dream </li></ul></ul><ul><li>Concern for expenses </li></ul><ul><ul><li>Children ’s education </li></ul></ul><ul><ul><li>Retirement </li></ul></ul><ul><ul><li>Bigger car , house </li></ul></ul>Life stages … Family life Go back to Life Stages map
    9. 9. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>What is his; what is hers? </li></ul><ul><li>Expenses are now “doubled” </li></ul><ul><li>Need a new place to live </li></ul><ul><li>Maintenance obligations </li></ul><ul><li>Divorce settlement </li></ul><ul><li>Financial affairs in disorder </li></ul><ul><li>Financial needs </li></ul><ul><li>Cost of abiding by divorce order </li></ul><ul><li>Payment of maintenance </li></ul><ul><li>Pension f und and assets reduced … </li></ul><ul><li>Furniture … </li></ul><ul><li>Rental/purchase a flat </li></ul><ul><li>Need to reassess all financial planning … </li></ul>Life stages … Divorced Go back to Life Stages map
    10. 10. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>Unexpected turn of events </li></ul><ul><li>Loss of company benefits </li></ul><ul><li>Career change challenges </li></ul><ul><li>Start a business/find new employment </li></ul><ul><li>Financial needs </li></ul><ul><li>Concern liquidity – short - term funds needed </li></ul><ul><li>Transfer of pension fund – severance package </li></ul><ul><li>Replace Medical Aid – short - term assurance update </li></ul><ul><li>Disability and group life? </li></ul><ul><li>Refinance car </li></ul><ul><li>Reassessment of financial goals </li></ul>Life stages … Retrenched Go back to Life Stages map
    11. 11. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>High credit card expenses </li></ul><ul><li>Many accounts </li></ul><ul><li>Unpaid debts </li></ul><ul><li>Personal loans </li></ul><ul><li>Financial needs </li></ul><ul><li>Income and expenditure planning </li></ul><ul><ul><li>Debt consolidation </li></ul></ul><ul><ul><li>Revise budget </li></ul></ul><ul><ul><li>Reduce unnecessary costs </li></ul></ul>Life stages … Deep in Debt Go back to Life Stages map
    12. 12. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>Children left home </li></ul><ul><li>Living expenses reduced </li></ul><ul><li>University costs if unplanned </li></ul><ul><li>5 - 10 years before retirement - a reality </li></ul><ul><li>Grandchildren </li></ul><ul><li>More time for hobbies and holidaying </li></ul><ul><li>Freedom </li></ul><ul><li>Financial needs </li></ul><ul><li>Reassessment of financial needs </li></ul><ul><li>Retirement top of mind </li></ul><ul><li>Investment returns – diversification a concern </li></ul><ul><li>Debt consolidation & eradication </li></ul><ul><li>Estate planning </li></ul>Life stages … Empty nest Go back to Life Stages map
    13. 13. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>Medical costs </li></ul><ul><li>Funeral costs </li></ul><ul><li>Estate must be wound up </li></ul><ul><li>Personal loans </li></ul><ul><li>Financial needs </li></ul><ul><li>Funeral cover </li></ul><ul><li>Estate planning </li></ul><ul><li>Revision of budget </li></ul><ul><li>Reassess financial needs … </li></ul>Life stages … Bereavement Go back to Life Stages map
    14. 14. Why do you need a plan? <ul><li>Characteristics </li></ul><ul><li>Retirement may be longer than your working career </li></ul><ul><li>Require inflation beating returns </li></ul><ul><li>Reassessment of capital expenditure/budgeting </li></ul><ul><li>Medical costs rocket </li></ul><ul><li>House paid off </li></ul><ul><li>Financial needs </li></ul><ul><li>Saving tax on pension fund monies </li></ul><ul><li>Choice of pension funds </li></ul><ul><li>Reassessment of income and capital portfolio </li></ul><ul><li>Payment of debts </li></ul><ul><li>Diversification to reduce risk </li></ul><ul><li>Continuous reassessment … </li></ul>Life stages … Retiring comfortably Go back to Life Stages map
    15. 15. What does Personal Financial Advice offer? <ul><li>Quality, needs-based financial advice </li></ul><ul><ul><li>Through holistic financial planning </li></ul></ul><ul><li>Ongoing financial advice </li></ul><ul><ul><li>Delivered by a professional financial adviser </li></ul></ul><ul><li>A comprehensive personalised plan for life </li></ul><ul><ul><li>Should your circumstances change, your financial plan will too </li></ul></ul><ul><li>Backed by Old Mutual </li></ul>“ It all begins with a plan … A plan for life .”
    16. 16. Who are we?
    17. 17. The planning process Understanding you better STEP 1
    18. 18. The planning process Discovering your hopes & dreams STEP 2
    19. 19. The planning process Taking a closer look STEP 3
    20. 20. The planning process The way forward STEP 4
    21. 21. The planning process The plan STEP 5
    22. 22. The planning process STEP 6 Reviewing the journey
    24. 24. Questions?