Guaranteed Irish Members, LIA, have put together a list of key benefits to working with a Financial Planner, whether you are an employee, a business owner or a high net-worth individual.
Managing your finances effectively is critical to your success as well as to your financial and mental wellbeing. However, the complex nature of financial planning can be overwhelming and time-consuming, which is why working with a Financial Planner is a worthwhile step towards achieving your long-term financial goals.
Guaranteed Irish member LIA (the centre of excellence for the education and development of Finance Professionals in Ireland) explain here the key reasons why people should consider working with a Financial Planner and the benefits of doing so. They also discuss the qualifications that you should look for in a Financial Planner, including the Qualified Financial Adviser (QFA) and Certified Financial PlannerTM (CFP) designations.
What is Financial Planning?
Financial planning is the process of creating a comprehensive strategy to help an individual or a business manage their financial resources effectively in order to achieve their long-term financial goals. Financial planning involves a wide range of considerations, including budgeting, saving and investing, debt management, retirement planning, tax planning, risk management, and estate planning. A financial planner can help you create a customised financial plan that takes into account your unique financial goals, circumstances, and risk tolerance. The goal of financial planning is to help individuals and businesses make informed decisions about their finances, manage risk, and work towards achieving their long-term financial objectives.
Why Work with a Financial Planner?
Individual financial situations are often more complex than they might first seem and this is why Financial Planners can offer real value. Here are some of the benefits of working with a Financial Planner:
- Expertise and Knowledge: Financial Planners have the knowledge and experience to provide comprehensive financial planning advice tailored to your specific needs. They can offer expert guidance on everything from budgeting, reducing debt and creating a savings plan to investment management, estate planning and tax strategy, ensuring that you make informed decisions that are in line with all your financial goals.
- Risk Management: Financial planning is not just about growing your wealth, but also about mitigating risk. A Financial Planner can help you to identify potential risks and take proactive steps to manage them, protecting your assets and ensuring that you are prepared for the unexpected.
- Customised Plan: A Financial Planner will create a customised financial plan that is tailored to your specific needs and goals. This will help ensure that you are on track to achieve your financial goals, and that you are making the most of your money.
- Long-Term Strategy: A Financial Planner can help you to develop a long-term financial strategy that takes into account your unique goals and circumstances. By developing a comprehensive financial plan, you can work towards achieving your long-term financial goals, such as retirement, wealth transfer, or philanthropy.
- Objectivity: A Financial Planner provides an objective perspective on your finances. They don't have a personal stake in your financial decisions, which means they can provide impartial advice and help you make decisions that are in your best interests.
Qualifications to Seek in a Financial Planner
When choosing a Financial Planner, it is crucial to look for someone with the right qualifications and experience to meet your needs. Here are some qualifications to be aware of:
Qualified Financial Adviser (QFA): The QFA designation is awarded by LIA,. QFAs are trained to provide comprehensive financial advice, including retirement planning, investment management, and estate planning.
In addition to the QFA designation, LIA also offers a Postgraduate Diploma in Financial Planning. This postgraduate programme is designed to provide comprehensive knowledge and skills in financial planning and is ideal for financial planners who want to take their expertise to the next level and provide clients with more advanced financial planning services. It is also a gateway qualification to the Certified Financial Planner (CFP) designation.
Certified Financial Planner (CFP): The CFP designation is an internationally recognised and globally respected certification in the financial planning industry. In Ireland, the designation is awarded by Financial Planning Standards Board (FPSB) Ireland. CFPs are trained to provide comprehensive financial planning services, including retirement planning, investment management, and estate planning. To earn the CFP designation, individuals must pass a rigorous exam and meet strict ethical and education requirements. This qualification can be particularly valuable for the likes of business owners and high-net-worth individuals who may need their Financial Planner to have a higher level of expertise and a more extensive range of services.
As well as qualifications, you should also seek out a Financial Planner who has prior experience working with clients who have similar financial goals and needs to your own.
In conclusion, working with a Financial Planner can be a smart choice for anyone looking to achieve their long-term financial goals. By choosing a Financial Planner who has the right qualifications and experience, you can gain the peace of mind that comes from knowing you're on the right track to achieving your financial goals. Whether you're saving for retirement, investing in a new business venture, or simply trying to manage your finances more effectively, a Financial Planner can provide the guidance and support you need to reach your goals.
