Building a Financial Plan – The Process
Hudson Advisory Group aim to work with our clients long-term. Financial Planning advice is regulated by the Australian Securities and Investment Commission (ASIC) to ensure that appropriate advice is given. A Hudson Advisory Group Financial Advisor works to ensure that he is not only meeting this obligation but meeting the obligation to the client, thus ensuring a sound long-term relationship.
The following financial process is usually followed to make sure the above occurs.
FIRST MEETING
The first meeting with your Financial Advisor will be discovery. It is essential the Advisory knows;
- Your Current Financial Position – what is your current position of assets and liabilities? Have you mapped your current personal cash flow? i.e. do you have surplus cash flow currently? If so, where is it being spent? What current Superannuation do you hold? Are you and your family protected from financial stress?
- What financial goals, both short and long term, do you have? E.g. Children’s education, buying a new care, a holiday, the option of retiring at a certain age on a passive income (income you do not need to work for) etc. What is the time frame required to reach these goals?
- A series of questions will be asked to discover your current risk profile. Are you Cautious, Judicious, Prudent, Assertive or Aggressive? This information will enable your advisor to develop a strategy to enable you to best achieve your financial goals, given your financial situation, timeframes and risk tolerance. A Financial Plan can be constructed personal to you.
SECOND MEETING
Presenting & Implementation of the Plan – Your Financial Advisor will present the Financial Plan.
The Financial Plan will work through a strategy that best suits your financial situation and risk profile to allow you to reach your financial goals. Every client is different, as such, these strategies will be tailored to you from the information collated during your first meeting. Areas that can be looked at but are not limited to include:
- Through restructuring, is it possible to free spare cash flow to invest or clear debt to better reach your goals
- Using existing spare cash flow, what is the recommended area to invest, pay off debt etc to best achieve your goals – is existing spare cash flow being lost day to day without knowing where? Are your investments appropriate to you, you Plan and the current and future market environment?
- Are all your current investment assets working appropriate to achieving your goals given your risk profile and current and future market environment?
- Is your current Debt structured correctly to best help achieve your financial goals
- Are you Superannuation assets working appropriate to best achieve your goals
Following the implementation of the financial plan and recommendations, regular reviews of the plan will be undertaken to ensure it is changing and adaptable to both the client and the financial market place.
REVIEWS
Due to ever changing market conditions and personal situations, Hudson Advisory Group offers an extensive review service, enabling your financial plan to be review as often as every 3 months. This will ensure you remain on track to achieving your financial goals.
