Financial Planning, Financial Planner, Money Manager, Investment expert, Investment Adviser, these are some of the terms you hear more frequently now. In recent years there has been an increasing craze for financial planners. There are several reasons why this wave seems to be growing one of which is the increasing awareness of the need for better money decisions and investments to compliment savings. Financial markets have a vast array of investment options which can be overwhelming thereby creating a need for a financial planner to provide insights and aid them to navigate this seemingly complex terrain.
People are looking for a workable plan to maintain their lifestyle and achieve their life goals after all almost every life dream has a financial implication. It is no longer just about having a budget and having a good savings culture but about how you balance all your life aspirations (financial and non-financial), manage your debts, your obligations (black tax), your tax, avoid financial pitfalls and plan for your retirement years to ensure you have sufficient funds when you may no longer be able to actively generate income.
In more recent times, the COVID-19 Pandemic brought to light more than ever the importance of having a good financial plan as many people all over the world experienced financial difficulties for several reasons including business closures, job loss, reduced income, being ill etc. In the aftermath of the pandemic, there was a widespread need for many individuals to seek financial advise, support, and guidance to help them navigate these challenging times considering their current financial situation, goals and objectives.
This wave has had its advantages; it has brought on more competition in the investment market as the traditional investment firms are now given a run for their money with new entrants into the market especially with the growth of fintech industry and with competition there is better creativity in the way they approach financial planning as well as a gradually more deepened market and more sophisticated investment options. There is more acceptance of digitalization in the sector and ease of investing.
Like most things in life, the advantages of this new financial wave albeit numerous also came with its disadvantages, more self-acclaimed financial planners flooded the market, some fraudulent with too good to be true investment returns or providing questionable financial advice and some just without the right knowledge or experience. While it’s true that anyone may offer financial advice to family and friends based on the information available to them, not everyone has the knowledge, training, and experience necessary to be a professional financial planner.
It is a myth that you must be wealthy to have a financial planner. While everyone may not have access to a dedicated financial planner, almost everyone can have access to a proper financial adviser. In choosing a financial planner or what I like to call a “financial partner” it is important that you choose one that is professional and trained to provide comprehensive financial advice and planning services. This “partner” should typically have expertise in areas such as investment planning, retirement planning, tax planning, estate planning, and risk management. One financial planner may not have all the expertise rolled in one, but they will sure point you in the right direction.
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