How a financial adviser can help you achieve your savings goals

Before you engage with a financial adviser, it is important to understand, broadly, how the financial planning process works. This will let you know what to expect from the relationship and what questions to ask to make sure the adviser is a good fit for you. A financial adviser should guide you through each of the steps below to help you understand, and achieve, your financial goals.

Determining your current financial situation

This is also referred to as the information gathering stage. Your financial adviser will ask you to complete information about your assets (investments and property you own) and liabilities (debt such as credit cards, bank overdrafts, and car and house payments).

Setting your goals

The next step is to do a needs analysis. You might have to complete a questionnaire or the financial adviser could just discuss your objectives with you to help them guide you in setting realistic, SMART savings and investment goals.

Identifying your risk profile

A very important part of personal financial planning is understanding what kind of financial personality or risk profile you have. Your financial adviser can help you determine this.

Risk-profiling essentially measures how open you are to accepting investment risks. Knowing your risk profile allows you to understand which type of investment or savings vehicles are best for you, so that you can make decisions that will work for you as an individual in the long run.

Evaluating different options

It is important to consider alternative saving and investment approaches before making a final decision. To help you evaluate the options, your financial adviser will take your personal circumstances, disposable income, time horizon and general economic factors into consideration.

Creating your plan

A financial adviser can help you draw up an investment plan that outlines your short-, medium- and long-term financial goals. Your plan will include information about the saving and investment plans you have chosen and any funds they might recommend for you.

Reviewing and revising your plan

A financial adviser will evaluate the performance of your investment plan regularly to make sure you stay on track to achieve the savings goals you set. However, it is also important that you keep an eye on your investments and speak to your financial adviser to revise your plan over time. Remember, it's your financial future you want to secure!

This article is meant only as information and should not be taken as financial advice. For tailored financial advice, please contact your financial adviser.