After you have engaged a financial planner to conduct a comprehensive financial needs analysis, the financial planner should have a subsequent meeting with you, to give you a proposed financial plan and discuss the findings with you. This meeting can be called Strategy Meeting or Recommendations Meeting. So what do you do when you have received the financial plan? 1. You are the co-creator of your financial plan. The financial planner is equipped with the professional knowledge and experience, to craft a financial plan that takes into account your personal circumstances, future inflation rate, investment returns, life expectancy and tax. However, the proposed financial plan is the starting point; this should not be your final plan. The proposed financial plan is what I call the theoretically ideal scenario. In practice you are in charge of the path you want to take. You need to decide what you want to do, how you want to do it, to achieve your financial and lifestyle goals. You give inputs, ask the financial planner to make changes, to get to a financial plan that is workable for you. 2. Ask questions. No questions are stupid questions. A good financial planner is also a good teacher, ready to answer your questions and explain financial concepts, relating to details of your plan, assumptions, terms and conditions, details of the financial solutions proposed to meet your needs. At times these financial jargons and concepts can seem daunting. Don't pretend you understand them if you don't. Ask questions. If a financial planner wants to rush through things, only interested in selling you the financial products he wants you to buy, without explaining to you all the details you would like to know, you should rather walk away. 3. Highlight issues not taken into account in the financial plan. There can be times a financial planner did not consider certain information discussed in the initial meeting, in developing your financial plan. Or you forgot to disclose material information. You should then bring it to the attention of the financial planner, so you can discuss about it, and the financial planner may have to re-work the plan. 4. Think about the implications of the recommendations. The value of a financial plan lies in the ability of the client to execute the plan successfully, over the long term, with the help of a financial planner. You need to think about the action items, whether you can mentally and financially commit to such actions over the long term. Does the plan give you flexibility? If your circumstances change, say you have one more child, or are retrenched, how would it impact your ability to continue with these financial products? Would you lose cover, benefits, or suffer financial penalties and charges? If your financial planner nudges you to be disciplined, would you toe the line? 5. Discuss the plan with the people affected by your plan. You do not live in a vacuum. You do not live alone. You have families and friends in your circle, that are going to be impacted by your financial plan and decisions. Specifically, people that are financially dependent on you, your spouse, children, sibling and maybe even parents. Discuss your financial plan with them, so you can consider their needs and inputs, in amending your financial plan. On the other hand, do not be a slave to your families' every wish. We do need to take care of our parents and siblings in need. However, every person needs to take own responsibility, to be useful and productive. In the Bible, 2 Corinthians 12:14 says, "... After all, children should not have to save up for their parents, but parents for their children." 6. Your are the owner of the financial plan. After you have discussed and finalised the changes to the financial plan with your financial planner, take ownership of the plan. It's your financial plan, not your financial planner's. Use the plan. Implement the plan. From time to time you may have to revisit and make changes to the plan, as your circumstances and needs change. The plan is the roadmap, to take you to your final destination, to realise your dreams and goals. There may be detours along the way, but adapt like our winning Springboks, be steadfast, and you will lift your own Webb Ellis Cup one day!
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