Money: is it your master or your servant?- iol article

You know that a financial planner should have the expertise to help you pay less tax, provide for your retirement, provide for you and your dependants in the event of the unexpected, and get superior returns on your investments.

But do you know that a financial planner can help you gain mastery over your money?

Barry O’Mahony, a financial planner with Veritas Wealth Management, says this is why you need a financial planner, and it’s what distinguishes a good one from a great one.

…the role of financial planners is changing in line with advances in client engagement…. all too often financial planners focus on the technical aspects of the job – such as estate planning and asset allocation – but neglect to build a relationship with their client. This relationship is all important since it has the potential to facilitate your personal growth and save you from mistakes that have life-changing consequences.

It is imperative that you have “real conversations” with your financial planner, O’Mahony says. “Tell your planner about yourself and about what you value, because it will shape your financial plan.”

O’Mahony tells …. how money can serve you or enslave you.

…He says there are three lifestyle decisions that have the potential to put you on the financial back foot forever. They are: the house you live in, the car you drive, and the schools you send your children to.O’Mahony explains: “It comes down to how much are you going to borrow to buy a home, and at what age? How much are you going to spend on a car and how often are you going to replace it? And do you send your children to government or private schools?

“As you face these questions, there is one consistent theme: keeping up with the Joneses.”

Whatever your priorities are, you have to make trade-offs, O’Mahony says. For example, some people choose to live in a modest home and drive a 10-year-old car so that they can afford to send their children to the best schools.

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YOUR PLANNER: GIVER OR TAKER?

Your relationship with your financial planner should be one of give and take…if you understand how a financial planner is remunerated and then ask for advice, you wiII be able to judge if the planner puts your interests first.

…To get a full picture, your financial planner needs to invest time in getting to know you…