Hey Guys
Just wanting some advice on writing out a financial plan. I've heard a lot of people mention it's imperative to do one but am not sure exactly how to go about it. Do i get my accountant to write me one up? or financial planner? Or is it just a matter of doing it yourself with clear goals and objectives?Feel like i'm treading water a bit and need to get myself a plan!
Any advice would be great.
CheersMorty
Hi Morty
Please note that your Accountant is not qualified to write up a Financial Plan for you as this is the domain of the Financial Planning industry and can only be done by a Licensed Financial Planner.
I guess it all depends on what you want if you are looking for loan structuring advice and know the sort of property that you want to purchase then any experienced mortgage broker can do this for you.
We offer this free of charge to our clients when we arrange their investment loans but do ave to charge for the full Financial Plan like any other Planner.
Richard Taylor | Australia's leading private lender
Hi morty. I'll save you some money, anxiety, and it won't even be financial advice! If you are as you say 'treading water' perhaps you can relate to the thought ' it 's hard to arrive at your destination if you don't have one' or similar. May I suggest first writing down (yes I know it seems silly – years ago when I was in a position to have been quite constructive with a 'plan' my criteria was 'eat, buy a new car every year or two, and have a good holiday every now and then – and would have laughted at the suggestion I am making now! ) some goals you have, or what you want to achieve this year, nex year, and in five years time. Ten? bit serious fo now maybe. What do you want to achieve, and do you want to achieve it via real estate, or via r/E, shares, and other investments too? Going form no idea at all, to shelling out a grand or two for a full 'financial plan' is like hopping off your push bike and getting into a formula one car. There are some terrific financial planners, but please bear in mind, very few can legitimately advertise themselves as being 'independant' under current legislation.
Don't hesitate to get (ie pay for) direction as needed down the track, but ,maybe see how you go getting a bit of a vision/plan/goals meanwhile – and see how your spouse (if yo have one) feels about it too.
All the best.!
Agree totally with the last response, because for years I "treaded water" also then I worked out what I call my 10YP (10 Year Plan) and a lot of things all of a sudden became more focused.
I started by working out where I wanted to be financially in 10 years (that was back in 2002) – ie in terms of annual income from investments. My main goal is to stop working for someone else at the end of 10 years.
From the income figure I then calculated the net asset position at the end of 10 years required to acheve that income at a nominal 7% return.
I then had an Asset $ target.
From there I went through each of the 10 years working out the assets needed to be purchased, making sure that the total after considering an estimated growth % ended up on target. This was obviously a rough guide but I did consider where the real estate market was at the time (2002 – Expensive) and ensured that most of these purchases would be done around 06/07 – which has worked out well. I also invest in shares so part of the plan was buying those reasonably aggressively between 02 – 07. If I was working out a new plan now I'd probably have that in reverse – property now (I invest in Sydney), shares later.
Anyway thats pretty much in a nutshell.
Bottom line – absolutely gotta have one to be successful!!!
All the best
TheBishThanks for your imput guys, very helpful stuff.
I'm pretty focused with the goals i think but actually need to commit them to paper and break it down yr by yr. Some homework's in order i think!Thanks again
Morty
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