Financial planning illustrates three financial principles:
- There are no independent financial decisions.
- The financial decisions made today have lifetime implications.
- The longer range your perspective, the better the decision.
Our goals based financial planning process includes an evaluation of all the areas relating to the management of your capital and how you might achieve your stated goals.
Our planning process
Our planning process includes an evaluation of the following areas:
Our task is to help you determine and set goals in the financial areas of your life. This will help provide direction and purpose, and hopefully crystallise your thinking as to where you want to be, financially, and by when.
“The first step is the hardest to take” fits the description of goal setting. As simple as it seems, setting meaningful goals is a challenge for most people. Yet, goal setting is the backbone of solid financial planning. We believe that financial planning decisions cannot be made until goals are established.
Education fees planning
This starts with a review of current funds allocated to education fees planning. We undertake a calculation of present funding needs and make recommendations to accomplish funding goals.
This looks at the fundamental issues that must be addressed when you are wrestling through the question of “how much is enough?” Much of our financial planning process is designed to answer this basic question. The key question is not how much but rather “how much for me?”
Since debt can sentence one to a lower lifestyle in the future and limit freedom and flexibility, we encourage you to minimise and eliminate debt.
We seek to recognise appropriate strategies for tax planning, and to evaluate the long-term impact of tax on your personal financial planning.
Cash Flow/living expenses
We encourage you to maintain a positive cash flow and consider decreasing living expenses which are encumbering you. We will provide a cash flow plan illustrating your cash position over 5, 10 and 15 year time periods.
Once we have answered the question of “how much is enough?”, completed net worth projections and estate planning projections we are able to help you get to grips with how much you are able to give should you wish to do so. For many Paradigm Norton clients developing a philanthropic giving strategy is a major priority.
We consider investments a ‘tool’ to assist you in accomplishing your financial goals. We believe that building capital is simply part of the planning process and not an end in itself. It is only when your longer-term goals have been determined that the investment portfolio management process can commence.
Here, we are seeking financial independence which does not necessarily equate to stopping work.
We encourage you to plan for the unforeseen, to plan for an uncertain future.
The key question in estate planning is “How much do I leave to my children, to charity and to others?” Once this question has been answered the appropriate planning techniques can be applied.