Your Financial Plan is only as good as its cover

Your Financial Plan is only as good as its cover

Most people agree that they are organised and have their family’s budget up to date. However, the process they use is generally simple and down-to-earth – it is unlikely to of a long-term financial solution.

What does financial planning look at -
The best method to create wealth over the long term – for you and your family – is to look at different aspects. These include budgeting, superannuation, insurance and investments.
To avoid confusion, we recommend the right place to start is with a licensed financial adviser.
Your financial adviser can implement strategies for you and your family. These will create, protect and build a succession plan of the wealth. They are the building blocks of a plan that stands the test of time.

Why have wealth protection strategies?

Financial planning is more than just about saving money. It is also about managing future risks.

The common belief “It won’t happen to me” results in many people having a south plan for wealth creation – but not an adequate plan to protect the very things that generates the wealth – themselves!

It is worth remembering that no matter how much expert advice you receive or how astute the money management – your financial plan cannot prevent the risk of you suffering early death or extended time off work through serious illness or injury. In addition, where that leaves you and your loved ones in the future depends on the wealth protection strategy you have in place at the time.

At Gurney Financial Services, we believe that you should protect your wealth whether you are starting a new job next week or moving into a new family home next year. The underlying fundamentals are the same – protection plays the pivotal role between the creation and succession of your wealth.

Creation Of Wealth – is about making your money grow and keep your plan up-to-date. To make sure the pieces are skilfully put into place for your family, it is a good idea to link up with a professional financial adviser.

Your adviser will work with you to:
Identify what type of lifestyle you want and when you want to achieve financial independence.
Make a saving commitment the will help you reach your goals, yet is affordable enough to maintain your lifestyle.
Develop a strategy to build your retirement nest egg.

Create a portfolio of investments that reflects the risk level and potential returns you desire.
Seek opportunities that are tax effective.
Review your plan regularly. Updated annually or when your circumstances change. This way you will always be able to take advantage of your family’s changing situation and goals, as well as differing economic or legislative environments, and new products or services

Protection of Wealth is about protection you assets and making your financial plan secure for you and your family in the long term.

Your financial adviser should look at the whole picture – your needs, wants, and desires – to ensure your treasured plan is covered by a sound insurance strategy that:
Protects you, your family or your business against a range of uncertainties.
Supports you and your loved ones in the event of disability, illness or premature death, so that:
Your mortgage or debts can be paid out
Lost income is replaced
Capital is available to continue funding your investments
An income stream is provided so that your lifestyle, and your family’s, can be maintained.

Succession of Wealth is about picturing what is important, realising your goals and properly managing your future, as well as your families.

Your financial adviser will help you decide on the best way to structure your financial plan, to enable you and your family to:
Control your accumulated wealth.
Maximise income during your retirement years.
Implement estate planning and business succession strategies.
Provide efficient, tax-effective transfer of assets.
Reinforce your family’s sense of security and certainty.
So what level of cover do you need?
Use this simple guide to weigh up how much life insurance you might need to adequately protect your wealth.

Naturally, it is best to discuss this fully with your financial adviser to get a professionally balanced assessment of your coverage requirement. As a basic guide, you need to take into account the rising cost of living and other miscellaneous expenses, which you may incur.

What are the risks? Is your financial position, enough for you to be able to stop working tomorrow? While most people are not in a position of such luxury, the death or disability of a breadwinner could have you pondering this very question.
If your income stops, it can have devastating results for your financial plan and can jeopardise your family’s future financial security.

The unfortunate aspect of death or disability is that it can happen at any time and has more far-reaching consequences than just the person involved has.

Finding the right cover

Your financial plan will be created especially for you and your family – to keep it working over time; you need a cover that fits perfectly.

To unlock the right combination of insurance products on offer, you should ask your financial adviser to explain their benefits, pricing and reliability…..and then consider the insurance provider’s reputation.

(information for this article has been courced from MLC)