Financial Planning

What is financial Planning?

Financial planning is a comprehensive process that involves analyzing an individual's current financial situation, identifying financial goals, and creating a strategy to achieve those goals. It encompasses various aspects of personal finance

 

Why do people require financial planning advice?

People often seek financial advice and guidance to build a comprehensive financial plan for several important reasons including the complexity of financial questions and decisions, from budgeting and saving to investing and retirement planning. Many individuals lack the expertise or time to navigate these complexities effectively on their own. Financial advisors bring specialized knowledge and experience to help clients make informed decisions tailored to their unique circumstances.

A financial planner will help an individual answer complex questions such as:

  • Can I afford the life I want to lead?
  • Will I ever run out of money?
  • Is my money working as hard for me as possible?
  • Can I be sure that I’ll achieve my financial goals?
  • Will my family be secure if I die or fall ill?

 

Objective and Unbiased Advice:

Financial advisors provide objective and unbiased advice that is focused on the client's best interests. They can offer a fresh perspective, identify blind spots, and offer solutions that may not have been considered otherwise. This helps clients make rational and strategic financial decisions.

 

Behavioral Guidance:

Financial advisors provide behavioral coaching to help clients stay disciplined and focused on their financial goals, especially during periods of market volatility or economic uncertainty. They encourage prudent financial habits and discourage impulsive decisions that may derail long-term plans.

It has been proven that you are more likely to generate wealth with if you avail of professional financial advice.

 

Specialized Expertise:

Certain financial areas can be extremely complex such as pension legislation which is continually changing. This requires specialized expertise. Financial advisors also have access to a network of professionals and resources to address complicated financial needs and provide comprehensive solutions when necessary.

 

Time-Saving and Convenience:

Building and maintaining a financial plan can be time-consuming and overwhelming for individuals juggling work, family, and personal commitments. Financial advisors streamline the process, saving time and effort while providing personalized guidance tailored to individual goals and preferences.

 

What is involved in the Financial Planning Process?

The financial planning process involves several key steps designed to assess your current financial situation, define your financial goals, and develop a strategy to achieve those goals.

 

Goal Setting:

When it comes to finances, having clear goals is crucial for staying motivated and making informed decisions. Financial planning plays a pivotal role in this process by providing structure and guidance.

Goals will vary from individual but can include things like retiring by a certain age, reducing working hours, upgrading the family home, funding children education or helping children get on the property ladder.

 

Building a Financial Picture:

Financial planning involves assessing all aspects of your financial situation including income, expenses, assets, and liabilities, and then looking at whether these goals are achievable based on current circumstances. We use cash flow modeling software to map out this journey which will help us identify any gaps or shortfalls in reaching these milestones or targets. We can then make adjustments to try and bridge these gaps.

 

Budgeting and Expense Management:

Through financial planning, individuals gain a clearer understanding of their income and expenses. This enables better budgeting and expense management, leading to more efficient use of money and reduced financial stress. We are also able to identify ahead of time some years that will be more expensive than others, for example; when children go to third-level education. By foreseeing these expenses, we are then able to put provisions in place now.

 

Risk Management:

Unfortunately, nobody is immune to illness or other unexpected events which can effect long-term goals.

Financial planning includes assessing various risks such as health emergencies, disability, or premature death. It involves strategies like insurance coverage to mitigate these risks and protect financial stability to ensure your financial plan weather such storms and still allow you to achieve your longer-term goals.

 

Investment Planning:

A financial plan considers appropriate investment strategies based on an individual's appetite for risk, time horizon, and financial goals. This helps optimize investment returns and build wealth over time.

We can also ensure that you are not reliant on unrealistic investment returns or that your plan could cope with a period of poor investment returns. We also need to ensure that you have the risk tolerance to stomach downturns where your investments or pensions could reduce in value for a period.

 

Tax Efficiency:

Effective financial planning incorporates tax planning strategies to optimize tax efficiency. This includes utilizing tax reliefs, deductions, and credits to reduce tax liabilities and retain more of your earnings for savings and investments.

 

Retirement Readiness:

Financial planning addresses retirement readiness by estimating retirement needs, determining savings targets, and selecting pension structures and investment options. This ensures individuals can maintain their desired lifestyle during retirement.

 

Business Exit Strategies:

Assessing business exit strategies is a critical aspect of overall financial planning, particularly for entrepreneurs and business owners who intend to transition out of their current business at some point in the future. An exit strategy outlines how the business owner plans to extract value from their investment in the business and transition to new ownership or management. Different exit strategies may be appropriate depending on factors such as the nature of the business, industry conditions, personal financial goals, and timing considerations.

 

Estate Planning:

We will assess your estate planning desires and see if any action can be taken now to reduce inheritance tax liabilities for children or indeed, if there is affordability to start transferring wealth while you are alive.

 

To do this, we help you to set realistic goals. And we guide you in making important choices in relation to your money so that you then achieve your goals, today, tomorrow and later in life.

We then work alongside you year after year, reviewing your goals and tweaking your plan, helping you to live the life you want.

Having a plan in place will give you confidence in your financial future. Having a strong partner alongside you will help you achieve your goals. Please see how we work with you to help you achieve your objectives.

 

Summary of the Benefits of the Financial Planning Process:

  • Provides clarity and direction in achieving financial goals
  • Promotes disciplined saving and spending habits
  • Mitigates financial risks through appropriate insurance and risk management strategies
  • Maximizes investment returns by aligning portfolio allocations with goals and risk tolerance
  • Enhances overall financial well-being and peace of mind

By following a structured financial planning process, individuals can make informed decisions about their finances and work towards achieving their desired financial outcomes. Working with a qualified and experienced financial planner can significantly enhance the effectiveness and success of the financial planning process.

 

The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.

CONTACT INFO

Opes Financial Planning Ltd
12, Parklands Office Park
Southern Cross Road
Bray, County Wicklow
Ireland

Tel: +353 (0)1 272 4130
Email: info@opesfp.ie

We are conveniently located on the Southern Cross Road between Bray and Greystones which can be accessed via junction 7 of the N11.

This is ideal for servicing clients from the surrounding South Dublin, Wicklow and greater Leinster areas.

 

Directions:

Our office is situated 20kms south of Dublin, just beyond Bray in Co. Wicklow. Take the M50 southbound onto the N11 then take Exit 7, the Bray/Greystones exit and follow signs to Greystones. We are on the right near the end of the Southern Cross road leading from the N11 to the Greystones Rd.

OPES FINANCIAL PLANNING LIMITED

OPES FINANCIAL PLANNING LIMITED is regulated by the Central Bank of Ireland.

OPES FINANCIAL PLANNING LIMITED (Company No 456044)

Opes Financial Planning is a trademark used under licence.