A financial needs analysis is carried out by a qualified financial planner to ascertain the current state of your finances and your financial needs. It is not an invasion of your privacy but ensures that you are not sold any particular financial product without an overall assessment of your finances. For example, 20 years ago, a salesman would have been able to sell you a life assurance policy without any idea of what your expenses were or how many other life assurance policies you had already. He would walk away with a hefty commission and you would be none the wiser. Zoom forward 20 years to the present and the financial services industry has changed dramatically. The following factors now have to be taken into account when you consult a financial planner and these are incorporated into your financial needs analysis: Your income and expenses or your budget. Your current assets and liabilities – this would include assets such as property and liabilities such as your debts. A list of all the current financial products you own such as life assurance policies, funeral policies and investments. Your current and future financial needs depending on your life stage. For example, your marital status and whether you have dependants or not. Your planner or financial adviser will also take into account any employment benefits you enjoy, such as group life assurance and medical aid benefits. Ideally, if you are married, then a financial planner would prefer to consult with you as a couple. Once he or she has all this information, your financial planner will then look at whether you need to address any financial holes in your plan. For example, you may have married and had two children since you
