Are you getting your return on Life?

By Steve Marsten

Financial planning can be a paper chase for many advisors and together with our clients; we are always looking at the return on the investment. Generating money and wealth for our clients occupies a significant amount of our time.

Sometimes good advice is not always acted on by investors and hence such decisions don’t translate into the lives they really want. Often there is not enough cash to do what they would like and this in part comes about from a delayed focus on life planning. Dreams are often over the horizon and hence only ever remain as dreams.  When planning is delayed or is late in life or does not actually happen, it can create some unhappy retirees. We call this a poor “return on life”.

As hard as it is to perceive, younger people need to open their minds to their future as early as possible and have some sound principles applied to their planning and savings. Let’s face it many financials plans are hampered by a lack of cashflow for example.

There are several challenges that investors should consider to maximise their returns and contribute to achieving a return on life that we all aspire to. These are – for example:

1.    Being able to introduce order and organisation into your financial life is a vital key. 

2.    Being able to deliver on financial commitments is only possible if you can work with         your planner and prioritise financial goals and take the necessary action. Monitoring     progress is essential;

3.    Avoid emotionally driven decisions; Planners need to provide available research and   ensure you have all necessary information for a logical decision-making process.

4.   Understand the risks and options available for each of your financial decisions;

5.   Always treat the arrangement with your planner as a partnership aimed at facilitating    the best life possible. This entails ensuring your planner has full understanding of          your background, philosophy, needs and objectives.

While these terms are not complicated, they are all focused on understanding how to see the relationship as something more then just interpreting numbers and devising your financial plan.

For more information about getting your return on your investments and life, call the team at Sothertons on 4972 1300.