By Ross Marriner
Keeping our financial affairs in order is becoming increasingly important today. We are faced with a
huge variety of insurance, investment and saving products and solutions and most people do not
have the time, experience or expertise to deal effectively with these matters. Getting it wrong
could have disastrous consequences leading to additional tax payments, erosion of our capital and
even a reduction in our standard of living. This is where a qualified, professional financial planner is
well positioned to provide valuable support and guidance.
Financial advice has undergone a significant transformation over the past few years. What was once
dominated by product sales and commission-driven strategies has now evolved into a profession
centred around client needs and holistic planning. Investment and insurance products have become
extremely complex and complying with the relevant legislation has become increasingly onerous.
Despite this progress, there are still misconceptions about what true financial advice involves. Many
people continue to associate financial planning with simply reviewing portfolios or purchasing
insurance. However, proper financial advice encompasses so much more.
The financial planning process involves a thorough analysis and evaluation of your current financial
status and goals. These goals could include a carefree retirement, educating your children, reducing
the amount of tax you are obliged to pay, saving for a new car or being able to sleep well at night
with the knowledge that life will go on in the event of an unplanned incident.
After this analysis, the financial planner would be able to make tailored recommendations for the
steps needed to help you meet your financial goals in the short, medium, and long term. This plan
would then need to be implemented and monitored on a regular basis, as your circumstances
naturally change over time.
Over the past few decades, the financial planning industry has made great strides in raising
professional standards. Designations like CFP® (Certified Financial Planner) have been established to
ensure that advisors meet rigorous ethical, educational, and experiential benchmarks. Financial
planners who have earned the internationally recognised CFP® designation have passed a
comprehensive set of exams administered by the Financial Planning Institute, demonstrating their
expertise in personal finance. This shift has moved the industry from a product-selling approach to
one focused on delivering value through personalized, comprehensive planning.
The key to successful financial planning is partnering with a professional who provides a tailored, in-
depth plan that aligns with your unique needs. True financial planning delivers insights and
strategies that can save money, reduce risks, and improve your financial well-being over the long
term. According to research undertaken by the Vanguard group, individuals who work with an
experienced financial planner typically achieve an average return that is 3% per annum higher than
those who manage their finances on their own.
By working with a Certified Financial Planner® to create a solid financial plan, you can rest assured
that you are not leaving your financial future to chance and that your goals and aspirations will one
day be realised.
Rands and Sense is a monthly column, written by Ross Marriner, a Certified Financial Planner® with PSG Wealth. His office number is 046 622 2891.
