Many people believe they have a good grasp on their finances, but few understand every aspect of financial planning. While many people do control their day-to-day budgets very well, they don’t look at the bigger picture. Financial planners are professionals who have the experience and education necessary to look at someone’s finances and determine where he or she can save money, which investments are best for him or her, and more.
As a financial planner, you may often have people asking you why they need your services, especially if they balance their budgets on a monthly basis. It can be hard to answer this question, but here are a few things you can tell these individuals.
You Can Help Them Save More
Even those who set aside a little money each month may not be saving as much as they need to or as much as they could. As a neutral third party, you can often look at a person’s budget and determine what he or she can cut, even if he or she has already looked at his or her budget multiple times. Showing your clients how you can save them money is often all it takes to make them realise that a financial planner is a necessity.
Help Them Prepare for Retirement
Preparing for retirement can be difficult. There are a number of different options for retiring and it can be hard to tell how much you even need to save. That’s where financial planning software can come into play. This software allows you to run a number of what-if scenarios for each client using his or her personal financial information. This will help him or her see exactly what the different retirement plans and investments will yield so that he or she can make the best choices possible.
Realise Their Financial Goals
Many of your clients are going to have different financial goals. Some may want to be able to pay for their children’s education when they attend university. Others might want to pay off their houses by a certain date or go on a specific holiday. You can help them realise these goals by creating savings plans and assisting them with investments. You may even be able to help them meet these goals early so they can have some extra money.
Prepare Them for an Emergency
One of the biggest financial problems many people have today is that they don’t save anything for an emergency. Some clients may not understand why you’re trying to convince them to set aside money for an emergency, especially if they have never experienced a financial emergency before. Outlining various unexpected costs and comparing those costs to the client’s current budget can help illustrate to him or her why an emergency savings is important.
Do a Risk Assessment
Another important service you can offer your clients is risk assessment. You’re a knowledgeable third party who can look at different financial risks and provide your opinion on those risks. Clients may be looking for such an opinion before they invest. One way of showing clients that this is an important reason to work with a financial planner is to point out ways you’ve helped previous clients avoid serious financial missteps.