Crystal Wealth Newsroom

When should I start working with a financial planner?


You’re in the money… for the first time ever
So you’ve just turned 21, secured a job and you’re finally starting to earn some decent money. Putting funds aside to save for a home is hardly going to be front of mind; after all, you’re living for the day. But truth be told, now’s the ideal time to live for tomorrow, too.

As soon as someone starts working and earning money they’ve never had before, we all too often see it being immediately spent. That’s because there’s little to no awareness of how putting a little bit extra into super or saving for a house deposit can have a massive impact on your life down the track. Yes, it’s the ideal time to celebrate your youth and nurture your career, but it’s also an opportune time to really start thinking about your long-term wealth strategy.

You’re joining forces… and finances
Another life milestone that often triggers discussions around financial planning is when people become a couple for the first time, or get married, and they make the decision to join finances. All their lives they’ve had two separate plans, but now they’re a partnership and want to understand the best way to merge those plans and achieve their life goals, as a couple. Maybe they want to buy a home, perhaps even start planning a family. Whatever they’re striving to achieve, working with a financial planner is a great way to establish joint goals and outline next best steps to achieve them. At times, we even act as a mediator during this key life turning point, and I think that can be really helpful to a lot of couples.

You’re protecting your assets… dependents included
Choosing to take on a large sum of debt – whether that be in the form of mortgage, business loan or similar – is a particularly crucial time to seek expert financial advice. For instance, if you’re buying a new home, should you move in straight away, or lease it out and rent somewhere cheaper for yourself? Perhaps you’ve started a family and now have young children to consider. What’s the best way you can work to accelerate your wealth and adequately protect your children in the process? These are the types of scenarios that play out in people’s minds and it’s smart to break it down, analyse all of the possible scenarios, make a plan and work towards pursuing those goals.

You’re on your own… for the first time in a while
Of course, life doesn’t always go to plan. You might be made redundant, an investment could fall through, or your marriage comes to an end. And since research suggests one in three Australian marriages will end in divorce, you won’t be the only one seeking financial guidance should you suddenly find yourself operating alone after a number of married years.

One woman came to me recently who was divorced and had relied heavily on her partner’s income during the marriage. She never thought she’d be able to buy a property and had very minimal savings. So we sat down together and planned out her goal – to buy a home and start paying her own mortgage, rather than continuing to rent and pay off someone else’s. The recommendation was to find a cheaper place to rent, make a few other small daily expenditure adjustments, and save a deposit for a property over two years. We planned to meet up at the end of the first 12 months to see how she was tracking.

By the time that first year was up she returned with the full deposit. She’d doubled her savings in half the time because she had a plan, she was being held accountable for that plan and the more she saved, the more it reinforced her own abilities and self-worth.

Why it’s never too late
When it comes to knowing how much money you’ll need to retire, there is no magic number. That dollar figure depends entirely on your personal circumstances. But where someone’s career, investments and family life will differ, there is one common denominator that ensures a solid footing for anyone working towards retirement: the earlier you start planning for it, the better the outcome. When you’ve got a plan in place you’re significantly more likely to succeed in achieving that plan – so write down your goals, and remember we’re here to support you, guide you, and hold you accountable, every step of the way.

If you would like to get your wealth creation journey up and running, or would like to review your current arrangements, speak to Louise or another one of our advisers here at Crystal Wealth – we’d love to chat.

The above information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances.

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