April 1, 2017

Why do you need a Financial Needs Analysis?

Just get it done!

Why YOU need an up-to-date Financial Needs Analysis!

If you are like most people, the demands of work and family on your life seem to be increasing every year. Taking the time to meet with a qualified financial advisor and discussing your financial requirements and goals for the future might not be the most exciting way to spend a couple of hours, but in the long run it could mean the difference between enjoying a financially stable life, and spending sleepless nights worrying about where your next meal will come from.

Having an advisor complete a professional Financial Needs Analysis (FNA) is important for everyone, not just those who have financial dependants, are saving for a comfortable retirement, are saving for their children’s education or for a lifetime dream such as an around-the-world cruise.

A complete and professional FNA will cover the following aspects:

  • Your current financial strengths and vulnerabilities, including those often overlooked potential situations where you and your dependents are at risk of serious financial loss on the death, disability or critical illness of any of the main bread-winners in the family (Risk Planning).


  • Advice on increasing your wealth from year- to- year while minimizing your taxation liabilities (Investment Planning).


  • Achieving your long-term financial goals, like providing for a comfortable retirement over your working years, while at the same time accommodating your current financial needs (Budget Analysis and Retirement Planning).


  • Looking at your Medical Aid and Long and Short-Term Insurance alternatives on an annual basis so as to arrive at the optimum value-for-money solution for your needs and changing circumstances.


  • Ensuring that, in the event of your death, you have a valid Last Will and Testament; that your estate has sufficient liquidity and that the distribution will be dealt with speedily according to your wishes and in the most tax-efficient manner (Estate Planning).

In addition to preparing and presenting a professional FNA, your financial advisor must also be able to implement his recommendations and complete annual reviews to ensure that your financial plans are sustainable over the long-term and match your financial goals as they change over time.

It is important to remember that not all FNA’s are created equal – some financial advisors will charge you a hefty fee to prepare a “personalised” FNA, and then present you with a few paragraphs informing you that you are under-insured and not saving nearly enough for your retirement, and that the only solution would be to purchase whatever products he is offering you.

The best way to ensure that you don’t end up buying unnecessary insurance or investment products is to have a trusted financial advisor – preferably one who has been recommended by someone you know and trust, and who has had business dealings with the advisor in the past.

Checking on the advisor’s qualifications and accreditation should be done as a matter of course – all financial advisors in South Africa have to be registered with the Financial Services Board, and you can confirm their good standing online at www.fsb.co.za. Financial advisors also have to conform to strict educational requirements.

Omega Wealth (Pty) Ltd, FSP 45461, has consultants who specialize in all areas of financial planning, and who can assist in preparing a professional FNA, using the most up-to-date professional software, at no charge to you. Contact us today and speak to one of our specialist consultants