The financial planning process

The financial planning process

Recent legislation has encouraged the insurance industry to take a holistic approach when dealing with clients. 

The days of selling a product just to get the sale are rapidly disappearing. 

Many clients still look for the cheapest product only to find that the product did not suite their needs in the first place. Instead we are entering an era in which clients and Financial Advisors build long term relationships. 

The following steps are crucial to build the relationship; 

□ Establishing and defining the professional relationship 

□ Gathering of data including goals 

□ Analysing and evaluating the client’s financial status □ Developing and presenting financial planning recommendations and/or alternatives 

□ Implementing the financial planning recommendations 

□ Monitoring the financial planning recommendations 

The process:

1. First contact allows us to get to know each other as each persons goals and dreams differ.
2. In order to start the process, information such as income, pension statement, dependents, etc. are required.
3. In order to make any recommendations, the data needs to be analysed to determine what provisions are already in place and how that fits into the clients goals.
4. Recommendations with quotations are then provided with the clients goals in mind.
5. Once the client has decided on the recommendations the work of implementing starts, e.g. making doctors appointments to determine the clients health status, opening investment accounts, etc.
6. It is crucial to review one's progress on an annual basis.

I actively strive to follow and recommend this approach, with the client’s assistance, as I believe that it is to the benefit of all parties concerned. 

Knowing the shortfalls in one’s portfolio and making an informed decision of what action to take is far better than taking a guess. Far worse is to take action because you know you should have life insurance, that you should make provision for retirement, that you should invest and than realising that it does not suite your needs when it is too late.

Financial planning

Why is financial planning important?

If you are in a car accident today and you do not survive, will your dependents be able to continue with their current standard of living without your salary?

What if you do not die or you suffer a trauma? Will you have enough money to pay your medical expenses while serving  your normal monthly expenses?

Any entity (person/business) that generates an income should have a financial plan in place.

This financial plan should be reviewed at least once a year.

In one's personal capacity one should plan for lose of income, expected and unexpected expenses as well as any risk that may lead to the lose of income. This planning is normally done for the length during one expects to be financially active, e.g. 55 - 65.

Expected expenses will include;             
- retirement provision, 

- provision for tertiary education, 

- the purchasing of property, vehicles,  furniture, etc.

This can be for a long term goal (e.g.: retirement) or short term goals (e.g.: holidays, purchase of a new vehicle, etc.)

Not having a plan is close to negligence.

Client Value Proposition

Value proposition

We provide advice on a complete and comprehensive financial analysis with a big picture in mind, leading to superior services.

Our business is built on the pillars of:

1. Professionalism
2. Transparency
3. Empowerment
4. Integrity 
5. Long term Client Relationships


Our clients have a vested interest in achieving financial security and know the importance of financial freedom. We assist them in achieving this by providing the following:

COMPREHENSIVE FINANCIAL PLANNING

We believe in spending time with you to understand the role of your existing policies and investments in terms of your particular needs and circumstances. This is matched with a unique and individually researched solution, providing you with a "roadmap" to financial security. We provide planning with the following features;


Holistic

We provide advice on a complete and comprehensive financial analysis with the big picture in mind. All our clients’ needs are addressed, known and unknown to them, taking existing provisions into account.

Relevant
Our advice is specific to each client’s different needs and reviewed annually to remain relevant to these needs at the time, thus providing better than average return because of timely action. We will update you with relevant information regarding economic and legislative changes which could minimise the impact on your financial success.

Up to date
Our advice is annually reviewed to remain suitable to the specific time and need, providing better than average returns because of timely actions.

Confidential

Your privacy and security in financial matters are a priority to us so we pay detail attention to data and document security.



EXPERIENCED STAFF

We are proud of our people and the way they contribute to your financial solutions. They offer a range of skills to help you achieve your goals including:

Knowledge
We invest in constant training and therefore properly equipped with the relevant knowledge to help you make a well informed decision regarding your financial status.

Results Driven

Our success is your success – we view you as a part of our team in order to achieve your desired results.

Effective
We will cover all aspect related to your specific circumstances.

Professional
We provide advice that is compliant with all industry related legislation and we are protected in the unlikely event of mistakes. We will ensure that you are treated with respect. Our commitments to you will be honoured at all times.
All information furnished by you will be treated as confidential and will be used only for the purpose of providing financial advice and the rendering of advisory services.

Ethical
As your trusted advisory I will ensure that I meet with you on regular bases. This ensures that all portfolios are revised regularly. This means that you as a client will have peace of mind at all times, knowing your solution will be up to date and relevant to your specific needs.



We believe in …

Development
Our trustworthy advice is based on a well constructed analysis of your portfolio. With this plan we can help you achieve your goals and dreams for yourself and your loved ones.

Long Term Relationship
You are assured that we are always there to guide you throughout your financial needs. You are assured that you will not be left alone and you will never be stranded.

Integrity
Professionals that are honest, trustworthy will serve you. You will have peace of mind that the advice we give is trusted and objective. It is based on complete financial needs analysis with the big picture in mind. All our client's needs, known and unknown to them are addressed taking existing provisions into account.

Fair business Practice 

You will have peace of mind knowing that we respect our colleagues in the financial services industry. You will always receive honest and fair advice.

Continuous improvement

You will receive financial solutions that keep on improving as technology and the economy change. You will be assured that the solutions that you get are reviewed on a regular basis.

Team support
Our team ensures that there is always somebody to answer queries. Our involvement will assist with the execution of your plan through personalised attention.

Saving for retirement

How to retire comfortably

Retirement Funding is often neglected because retirement is ”far away” from today’s worries. However, if you are fortunate enough to attain retirement age, you would not want to be financially dependant on your family, the State or another job.
You would like to enjoy the fruits of your labour.

Actuaries have calculated that if you save 13% of your salary for 35 years and your investment return exceeds inflation by 4% per year, you should be able to replace 70% of your salary earned immediately before retirement. This will in all likelihood provide you with the same, or greater, amount of spending money as disposable income before retirement.

If you pay 25% of your salary to your house mortgage, which you must try and pay off before retirement, and 13% towards savings, you spend roughly 40% already, and 70% replacement would therefore provide you with 10% more “spending money”.

Another easy calculation to see whether you have saved enough for retirement is to take the amount you require as a monthly pension and multiply this with the time you require the pension,
e.g.: N$ 1000 per month (pension) x 12 (annual pension) x 20 years
(provision) = N$240 000.
Government has made it easier with the last budget tabled in parliament allowing a tax payer to deduct up to N$1500 000 per annum for retirement and tertiary education provisions.

So there can be no reason to neglect retirement planning. Either pay your full tax or use some of it to save for retirement.

In our next article we will discuss the effect of inflation on your saving, pension and capital provisions for retirement.