What is lifestyle financial planning?

ONE of the greatest risks facing investors is the erosion of their buying power by inflation.

Lifestyle financial planning involves asking questions around each client’s special goals and needs:

  • When do you want to retire?
  • How much income would you require in retirement?
  • What costs do you face?
  • What are your current investments?

Once a client has stated their personal aspirations, the planning process examines if you will have enough money to meet your goals.

RANDS AND SENSE … with Barry Allen and Christo Kok

By way of practical example, a person who has not made adequate provision for retirement may need to, among other strategies, accept a higher level of investment risk in order to provide potentially for higher returns and make up any shortfalls by contrast those that have been fortunate to have accumulated sufficient wealth would have the choice of a more conservative approach.

You must be comfortable with the risks you will need to be exposed to in order to achieve your desired lifestyle.

If you are not comfortable with the risks, your financial planner will help you find an acceptable trade-off between desired lifestyle and an investment strategy that allows you to sleep at night.

Lifestyle financial planning starts with you – your hopes, fears, goals and vision for the future, incorporating both your current lifestyle and your desired lifestyle. Once your financial planner has a better understanding of you, your goals, and what you want to achieve, then together you will determine the plan required.

For a lifestyle wealth design plan, please contact Barry Allen or Christo Kok in order to achieve your lifestyle goals. See advert on this page.

Leave a Reply