Banking and Finance

Financing the acquisition of assets through borrowing can be a constructive part of a financial plan.  Buying or renovating a home, buying a business or investing in property, are all positive actions and all have the potential to be progressive steps forward in your financial life.

A word of caution here though.

The lending institution gets paid to sell you a lending product.  There is a service wrapped around that, but it should not be confused as a service that will necessarily consider all the issues that serve your interests.  The representative of the lender can get tunnel vision, focused exclusively on getting the finance in place, inadequately considering the best advice around how to structure the finance.  This can include details of the loan term, interest only or principal and interest, fixed or variable rate and other features such as the use of mortgage offset accounts, particularly where there is a combination of tax deductible and non-deductible debt.

Your financial life planner will always know you better than the lending officer and with your personal situation and goals in mind, is well-placed to guide you when making investment decisions with borrowed money.  Then after the loan is in place, it is important that there be a regular review of your finance to ensure it continues to meet your needs in the context of your broader financial life plan.


Financial Life Planning is a holistic process
that puts your interests first and focuses
on increasing your sense of financial
well-being and life satisfaction.