Why is Financial Planning Important?

The goal of any good financial plan is to set you on the path to achieving the lifestyle you require throughout your life.

It is much more then just getting investment and taxation advice. Whether your needs are simple or quite complex, a good financial plan should encompass:

• Saving
• Investment
• Income needs
• Risk assessment
• Taxation
• Retirement
• Estate planning

Most importantly, financial planning is a continuous process.

Advantages of Managed Funds

Managed funds clearly have their advantages, though it is questionable whether the average investor is familiar with these benefits.

Fundamentally, the main benefit of professionally managed funds is that they provide access to an investment that offers numerous investing opportunities that the individual investor would otherwise not have been able to access.

Additionally, the wide variety of managed funds available ensures that the personal requirements of each individual investor may be met. Whether high risk/high capital growth investments or the low risk investment that provides consistent income over a period of time, managed funds offer solutions for almost every investor.

Together with a financial plan, budgeting is the most effective way to get what you want from life and avoid being caught in the traps that consumer society lays.

Five steps to a budget

1. Calculate your income from all sources;
2. Ensure you have access to an emergency cash fund to cover unexpected events;
3. Deduct your savings for specific goals;
4. Deduct your essential expenditure -
   debt / household / healthcare / transport / education / insurances;
5. Spend the difference on discretionary items and activities such as entertainment and holidays.

Investment decisions are very important. They often have long-term consequences. Read all documents carefully. Ask questions. Seek advice before committing yourself.

Money personality profiler
A lighthearted test to work out your financial strengths and possible blindspots.

Budget calculator
Put in your income and spending the calculator will work out the difference.

Regular saving calculator
Work out how much your regular savings will add up to over time. Watch the power of compound interest at work.

Lump sum calculator
Work out how much your lump sum will expand if you leave it to grow.

Goal machine calculator
Work out how much you'll need to save regularly to reach your savings target on your target date.

Getting into debt calculator
Understand the real cost of a loan before you take it on - calculate the total interest you'll pay by the time you pay off a loan.

Getting out of debt calculator
Work out how to pay off several debts at once so you pay the least interest.

Repayment options calculator
Work out how different repayment levels affect the total amount you repay on a loan and the time it takes to repay it.

Quick retirement calculator
A speedy ballpark calculator to work out how much to save for your retirement.

Comprehensive retirement calculator
Make a detailed financial plan for how much you and your partner will need when you retire.

Student Loan calculator
How can you minimise that cost? How old will you be before you finish paying it off?

60 Plus Budget calculator
This comprehensive calculator helps you find out how much of your nest egg you'll need to cover your retirement spending.