Everyone would like to own their own dream ocean view home one day but how many people can actually achieve that ambition? More than one would think, according to Hedley Lamarque, CFP®?, financial planner for BDO Wealth Advisers.
“There are many misconceptions about what can be achieved by the average person in his or her lifetime but it is surprising how many dreams can be realised with sound financial planning,” he said.
“It is important to dispel the myth that professional financial planning is just about recommending financial products. Experienced financial planners are equipped to guide you to make good decisions so as to manage your finances successfully to achieve your life goals, such as being able to support loved ones financially, being debt-free, retiring in the lifestyle that you want and, of course, buying that dream ocean view home.”
Lamarque offers some tried and tested tips on how individuals can organise their finances so that they determine their financial future and attain the luxuries they aspire to.
“Any long term gains are going to require saving – no pain, no gain – but the trick is to find a balance between enjoying a good lifestyle whilst continuously investing for the future – and that enticing ocean view home,” Lamarque said.
His golden rule is you’re never too young to start investing.
“If you start investing a percentage of your earnings on a monthly basis from an early age and continue to do so through to your 50s or 60s, you will more than likely never have to worry about having enough capital for your retirement years or to buy your dream home. If you delay starting your investment programme by even five years you will find it hard to catch up the lost growth.”
“Don’t fall into the trap of believing that it will get easier to save later in life when your income increases. Start now. As your income increases, so do the claims against it and, as your lifestyle improves, it becomes more difficult to start the discipline of saving the longer you postpone it.”
Buying your own home to get a foothold in the property market is a good idea when you are able to, as a first step towards buying that dream home, Lamarque said.
“The best way to finance this is through a mortgage bond which will typically be paid off over 20 years or more. However the quicker a person can pay this off the better, as the longer the term of the loan the more the interest accumulates – this is where compounding starts working against you.”
Another rule of thumb was never to cash in retirement savings when changing jobs, Lamarque advised.
You could live to be 100 years or more and you will probably be retired for 30 or more years. If you want to be spending that time in your dream home or making ends meet, it is essential to preserve your retirement benefit,” he said.To achieve the best wealth-building results, Lamarque recommended consulting a reputable wealth manager with the right profile and credentials
“Certified Financial Planner® professionals have the necessary education, experience and expertise to construct holistic, tailor-made financial plans comprising financial products and investment portfolios based on an individual’s personal circumstances and his or her specific goals and objectives,” he said.
“Certified Financial Planner® professionals have the necessary education, experience and expertise to construct holistic, tailor-made financial plans comprising financial products and investment portfolios based on an individual’s personal circumstances and his or her specific goals and objectives,” he said.
“Certified Financial Planner® professionals have the necessary education, experience and expertise to construct holistic, tailor-made financial plans comprising financial products and investment portfolios based on an individual’s personal circumstances and his or her specific goals and objectives,” he said.
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