You might be new to the idea of developing a financially independent lifestyle. If so, you may have heard numerous phrases such as asset management, wealth management and financial planning without much clarification of what they really entail. The important thing is that you understand how they can be of benefit to you, but put plainly, asset management is a process that helps you achieve your financial goals through financial advice and knowledge of investment management.
When you work with a truly independent financial advisory firm, they will allow you to employ your assets in a way that ensures tax efficiency, appropriate risk management, the opportunity to create further wealth and bring you nearer to your life goals. Good financial planning and asset management is as much about building a better future as it is about improving your life today. This means having appropriate protections and cover in place for your finances now and later, preparing for whatever potentialities in the best possible way.
Let us take a look at some of the specific benefits that are able to be achieved through successful financial planning.
Wealth Creation
Financial planning can make your money work for you. Whether you simply want your nest egg to outcompete inflation or you have an appetite for higher potential gains, there are options available to you. Once an understanding of your risk profile has been developed, a financial planner will use their in-depth knowledge of finances and investments to present you with the best options available to you.
Tax efficiency
Keeping up to date with the intricacies of tax legislation is a full time job and you cannot be expected to know the ins and outs of the latest rules by yourself. Financial planners can have that understanding, and relay that knowledge on to you. Understanding and utilising your available allowances makes your money go further.
Retirement Preparation
As previously mentioned, the rewards of planning ahead for a financially independent future cannot be overstated. The earlier you start considering the reality of your retirement plans, the better. It is very difficult to make reliable plans if you do not understand the situation that you are currently in. A financial planning firm will help you to determine how much you will need to retire to live the lifestyle that you want to, and develop a plan for you to achieve that goal.
Estate preparation
Planning your financial future also allows you to plan for the future of your family and loved ones. With the help of a financial planner you can be comfortable in the knowledge that you are making the most of gifting allowances, trusts and any investments you may have, that offer inheritance tax relief. Whether you are looking to provide financial security for your children or grandchildren, or to offer a donation to a cause close to your heart, good financial planning will avoid paying any unnecessary taxes.
At DBL we have seen the benefits of financial planning realised for our clients time and time again. We would love to discuss your individual situation with you and determine exactly how you too can benefit. If you have any questions, do not hesitate to get in touch.
