Most people don't know what a financial planner actually does.
One of the hardest things for someone who has never prepared a financial plan is to know what they want.
Every successful financial plan must start with a realistic
A significant number of people seeking financial advice do not actually know what financial resources they have that will enable them to achieve their financial goals.
Financial resources include superannuation, life insurances and your taxation position.
auditing means obtaining the actual documents and statements for the financial resources (e.g. Superannuation statements) to confirm exactly what the client has, as opposed to relying on what the clients think they have.
Most people want to invest, but they don't understand exactly what they are investing for.
How often have I heard from a client :I want to buy an investment property"? My first question to them is 'what is the purpose of your investment property? Most don't know the answer.
In terms of financial planning an investment property can provide capital growth and or income.
The capital growth of investment property will only help you achieve your financial goals if you sell the property at some point in the future and then you have to account for possible capital gains tax which will reduce the return.
If you need part of your capital in the future, it may be difficult and or expensive to access it - let's say you need ten thousand dollars to update your car, you can't sell one-bedroom of your investment property to pay for it.
If you are buying an investment property for providing income in retirement, the average residential rental property income will not likely meet your retirement expenditure requirements, so you have to have a lot of property (debt free) to be able to generate sufficient income to meet your retirement expenditure requirements.
For example: there is no use for a client to consider an investment property strategy to assist them achieve their financial goals, if the client does not have the financial ability to purchase an investment property.