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Why is financial Planning so important?

Most people don't think financial planning is for them. Some think they are not rich enough to worry about such things, others believe they are rich enough so do not need to bother with financial planning. But financial planning is for everyone no matter what your current financial status? If you have no wealth then you need a plan for creating it, using ideas such as compounding growth combined with regular saving. If you already have wealth then you need to ensure it is protected, from areas such as tax, liabilities in business or relationships, or from financial failure of banks and market turmoil, whilst at the same time ensure you are receiving a good enough yield.

In reality we are all financial planners and most people have a financial plan on some level, whether they are trying to learn about managing debt, find the best interest rates, save for education, buy a house, save for retirement, almost everything we do requires some form of financial plan.

The most important aspect of financial planning is being prepared for the unexpected as well as the expected. On a basic level we are all expected to retire, so we must plan for that, if we have children we must plan for them areas such as school fees for example. But preparing for the future is simply essential and remember the unexpected can happen at any time.

Will you be prepared for the coming government debt crisis; it will most likely last a decade in Europe and the USA, and will cause a social security crisis? Competition from countries such as India and China’s new workforces will add to the unemployment of the west. The current economic crisis? Do you have a plan for when you lose your job or for when stocks crash once again? Those are just a few examples of what you should be prepared for. It takes a lot of work, and a healthy dose of realism. No need to panic as that is what we at Parmafey are here for; we will help you build a financial plan that relates directly to your needs and your goals.

How do I get started?

There’s a lot of information on our website and we are adding to it on a daily basis. We will cover everything from retirement planning to bank deposits and tax. We will show you how to ensure that no matter what happens in the world at large your plan will be built on a solid platform; that will withstand all the things that are sure to happen between now and the day you retire.

For example if you have more than 15 years before you retire the odds are that there will be at least one more financial crisis. So what can you do to ensure your assets work hard enough during this time without placing them at undue risk?

None of us can foresee the future, although it is fairly easy to see trouble coming. Use your common sense, if every country in the west has high unemployment, with interest rates at almost zero and very little to no GDP growth. This should tell you that something is fundamentally wrong? Combine this with high levels of debt in almost all Western Countries and there is certainly something to worry about? The possibility of a recovery that will take a decade or longer is the most likely outcome and none of this can be good for equities surely?

Well with a good financial plan linked to your specific needs we will be able to show you how to prosper even in such an environment. You will still be able to achieve most goals. It will be possible for you to invest for long term growth for your retirement using equities in areas with higher GDP growth. It is also possible to invest your savings and receive rates in excess of 8% and at the same time keep your capital secured with the correct research anything is possible.

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About us: Alec Maclaren

I have over 20 years experience as both a UK based IFA and an offshore financial adviser, I started in London in 1992 after leaving HM forces, I qualified in March 1993 and then spent 6 years in London. I moved to Cyprus with my wife and two girls in 1998. We had two more children whilst living in Cyprus. I enjoyed living and working in Cyprus we made many friends and it was an excellent place to raise a family. I worked and spent a great deal of time in other areas including Romania, Czech Republic, Grand Cayman and the Middle East, as well as Kazakhstan. Over the years as an offshore IFA I have experienced both good times and bad in regard equity markets and asset management. The world has suffered quite a number of financial meltdowns from the net bubble at the start of the decade, to the liquidity and debt crisis which is still ongoing. I have learned and experienced a great deal over this period certainly about the importance of long term planning and risk management. As well