The Meaningful Money Personal Finance Podcast Helpful Basics: The Financial Advice Process
Nov 20, 2024
Discover the essential steps of the financial advice process, including the vital difference between advice and planning. Learn about the importance of cash flow modeling and how it can enhance retirement options. Gain insights into the need for clear communication and transparency with your advisor. Explore how to effectively choose a financial advisor by focusing on trust and organization. Plus, hear a humorous analogy about shopping for window blinds to illustrate the importance of being prepared before consultations.
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Difference Between Advice and Planning
- Financial advice is often product-led, while financial planning is outcome-led and holistic.
- Planning focuses on where a client is now, where they want to be, and how to get there beyond just selling products.
Be Fully Open With Advisor
- Provide your advisor full and honest information including pensions, protection, income, and wills to receive proper advice.
- Holding back information risks missed opportunities or incorrect advice.
Power of Cash Flow Modelling
- Cash flow modeling is essential for meaningful financial recommendations.
- Adjusting variables like retirement age in models shows impacts on finances and helps set realistic goals.