Financial Planning Institute leads industry in marking the importance of financial planning

Statistics recently released by the Reserve Bank show that household debt as a percentage of disposable income is at a worrying 76 percent. This has eased somewhat from a high of 80- percent, reached in late 2008. On the face of it, South African consumers have heaps of debt to manage, with most of their disposable income going into servicing it – so just how do they get out of it?

In aid, - FPI along with the broader financial services industry will use the upcoming Financial Planning Week, from 25 November to 29 November 2013, to introduce financial planning to consumers as a way of improving their finances.

Godfrey Nti, CEO of the Financial Planning Institute (FPI) says, "The need for effective financial planning for all South Africans has never been greater than it is today. Our industry is accountable for ensuring that citizens are equipped with the necessary financial knowledge, understanding and tools to transform their dire financial situations and create their own, self-sufficient and financially secure future.”

Introductions to financial planning will take place in the form of free consultations with CERTIFIED FINANCIAL PLANNER® professionals who will conduct an in-depth financial analysis and chart and way forward based on the verdict reached. This is will be coupled with financial literacy clinics and MYMONEY123 financial education programmes that will be held nationwide and backed by FPI. The clinics will be hosted by FPI Approved Professional Practice™ firms, FPI Corporate Partner™ companies as well as other financial services industry organisations.

As part of Financial Planning Week, the FPI will reach out to the public through various initiatives such the Retirement Financial Literacy clinics, presented by CERTIFIED FINANCIAL PLANNER® professionals, which will be hosted at selected retirement homes. The institute realises the importance of financial planning during retirement age, a time most retirees find challenges from a financial planning point of view.

Also layered into the campaign will be street activations at intersections where information around financial planning will be shared and memorabilia will be handed out. Paramount to the FPI’s objectives is to ensure financial planning becomes an integral part of the life planning process, too often people make commitments that involve money without preparing a plan and this can have negative repercussions.

In celebrating Financial Planning Week, the Institute of Behavioural Finance in conjunction with the Financial Planning Institute will be offering a free, scientific assessment of your personal financial risk tolerance. The risk tolerance test is provided by FinaMetrica, world leaders in scientific risk tolerance testing. Their system is used by leading financial advisors in 23 countries in seven languages. More than 700,000 FinaMetrica risk tolerance tests have been completed.

Once completed the results of this report can then be discussed with a financial planner/advisor offering a free consultation during the Financial Planning Week.

Prem Govender, CFP®, FPI Chairperson concluded, "The collective involvement of the financial services industry displays a momentousness shift in our consumer financial literacy drive. The industry is well aware of the fact that large amounts of South Africans have their backs against the wall in relation to indebtedness and need solutions.

In line with our core mission to promote good financial planning amongst all South Africans, the Financial Planning Institute is proud to be leading this initiative, in light of ensuring that consumers take action to better their financial lives.”

For more information, visit the Financial Planning Week website www.financialplanningweek.co.za