FINANCIAL PLANNING PRINCIPLES

FINANCIAL PLANNING PRINCIPLES

Integrated Lifestyle Financial Planning

Financial Planning Fundamentals

Integrated Lifestyle Financial Planning

PRINCIPLES

Money and investing is often the first thing a financial planner will talk to you about, but we believe that the center to any financial planning engagement starts with you – your dreams, your aspirations, the lifestyle you want to live and the legacy you want to leave behind.

At MyPlan, our planning principles are based on a sound intellectual framework that forms part of a systematic process designed to help achieve your financial goals. Implemented through the Adviceworx Lifestyle Wealth Design Programme™, our integrated financial planning approach is an ongoing holistic advice process that focuses on you, and your desired lifestyle objectives. Once we know your priorities, we model a strategy around your specific needs.

What is Integrated Lifestyle Financial Planning?

The essence of Integrated Lifestyle Financial Planning is about co-creation. The point of departure is getting to know you by understanding what your values, goals and aspirations are. The focus is on building trust and confidence, to ensure that you are included in all the important decisions regarding your financial plan and that you understand all the elements of it.

By really getting to know you on this level, we gain a mutual understanding of how you can balance today’s responsibilities with tomorrow’s aspirations. This approach to wealth planning ensures that you have the best chance to achieve your short-, medium- and long-term goals reliably.

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Honest, open conversation is the foundation of any good relationship and it allows us to construct a clear, consolidated view of your financial life.   

Integrated Advice Philosophy

We know that meaningful advice considers all of your goals and aspirations, and delivers an integrated plan aimed at achieving those goals. Therefore, our lifestyle financial planning philosophy continuously follows these four steps:

The starting point is the understanding what your ideal lifestyle looks like. We will discuss your personal needs, wishes, your relationship with money, assets and investments – taking into account all of your dreams, goals and aspirations. 

We will then discuss and evaluate your current assets and liabilities in an estate planning exercise to establish: 

  • The liquidity in your estate upon death 
  • The effects of all costs and taxes, such as CGT, Estate Duty, Income tax and VAT on your estate 
  • The effect of your marital regime on your estate administration process 
  • The suitability of your current will. 

Once we have established what your lifestyle looks like, we can calculate the investment return that your assets and investments need to produce in order to achieve your goals. 

Once we know what the required return on your assets are, we can ascertain what asset allocation will give them the best possible chance of achieving this return. The required rate of return determines a specific investment asset allocation to be implemented. In other words, how much should be invested into shares, property, cash, offshore, onshore, etc. 

The asset allocation will dictate the amount of risk that you will need to take to achieve your required return over time. Whether or not the level of risk is right for you, becomes an ongoing conversation that is guided by your goals and tempered by the potential loss or gain with which you are comfortable. 

We will spend quite some time discussing the expected volatility and possibly likely outcomes of your recommended investment strategy. If you are not comfortable with the market risk, we will need to reassess your lifestyle goals and objectives or consider other various trade-offs such as saving more, spending less, working longer, disposing of assets, etc.