What we did in the past will not work for the future.
I can remember my first fore into the Financial Planning industry (funny, they called it Financial Planning but there were so many aspects that were not dealt with in the early days) it was basically, here is a product you can use. We just had a few types of investment products; bank instigated investments, insurance bonds, Whole of Life insurance policies, Endowment Policies, investment trusts, then came the wholesale trusts, then, the different types of investment platforms and the variety of products grew. The array of products, platforms and derivations has multiplied and now there are literally thousands to know and understand.
The past few years have really tested my beliefs, understanding and values. The Financial Planning Industry has undergone change and it is interesting to listen to the general information that has been generated. I have been part of the financial planning industry for twenty six years and it has given me a great deal of opportunity for growth and expansion of knowledge. I love the industry because it has the ability to positively impact lives once understood and used properly.
Two years ago Tony Hartley, one of the Directors of Madison Financial Services, came and spent some time with me, he sent me a book ‘The Ascent of Money” by Niall Ferguson, I also purchased the DVD and the CD series. I found it very interesting, and the information that it contains is important in understanding money and the tool it is.
One of the most interesting concepts that I know to be important is that financial planning is just that, FINANCIAL PLANNING, life happens, things happen, and we have to take into consideration the affects of ‘what happens’ in conjunction with where you are and what it is that you want. It cannot be done in isolation. One type does not fit all.
The last 18 months, I have used to develop my knowledge on the financial instruments that are available for our use, which investments fall into the category of real tools, and the ones that fall into the category of ‘gambles’, not only which tools are best to use, but also how they can be used more effectively.
If your thinking is ‘take my money to the bank, it is safe there,’ I suggest that is an interesting thought pattern.
Ask yourself the question ‘Would you rather have 5-6% interest on the money you allow the bank to use or would you rather own part of the bank and get the earnings, the imputation credits and the growth?’
Another question you may consider, ‘who has control of my money?’
There are many different ways to think, none right or wrong, however our thinking is generally limited by the knowledge we have and understand, and the perception we have about that knowledge.
We live in interesting times and it is to our best interest that we make our decisions based on facts relevant to our situation. Fear is not a good fact to base your decisions on.
Enjoy you day
Irena Butler
