I’m always talking about the need to plan but someone asked me recently, “Is Financial Planning just a glorified title for financial advice in an attempt to elevate the industry away from its illustrious past?”
Good question and I can see where he is coming from.
The answer as far as I’m concerned, is a firm ‘no’. In my opinion there are companies out there who have added ‘Financial Planning’ to their title yet are still focused on having a transactional relationship.
However, real Financial Planning, I believe, is about creating a stronger emotional connection between money and your life. An opportunity to remove anxieties, explore possibilities and to become excited about the future.
Here at Blue Sky we are truly passionate about Financial Planning. Click here to find out about the Essence of Blue Sky.
Financial Planning is about all of these things, and more:
- Knowing your net worth i.e. if all your assets were sold and you chose to roam the world, how much would you have at your disposal?
- Being aware of your future income and how this may change according to circumstances
- Being able to accurately recount the amount of liquid assets you have at your fingertips
- Having a real understanding of the financial position for the surviving partner if one of you were to fall ill or pass away. What lifestyle could they afford?
- Having clarity on the policies you have and the benefits they offer
- Having confidence that any funds, shares in investments, pensions etc. are suitable for your risk approach. We’re talking attitude to risk, tolerance to risk and capacity for risk here
- Being able to understood and evaluate your range of options for reducing your tax bill in context of your overall situation
- Having a strategy for managing your investments and pensions in harmony with your life goals
- Being absolutely clear what annual incomes are required every year for the rest of your life
- Having confidence that no matter what happens, if you stick to your Financial Plan, you will never run out of money. Ever!
- Knowing you’re in control rather than your employer, HMRC, the investment markets or indeed you’re not being a slave to your mortgage and in some cases… your spreadsheet!
- Being aware of the worst-case scenarios but not letting anxiety dictate your future outlook
- And of course, knowing your number… the amount of money you need and when to live the life you want.
Most people’s idea of a financial review (and I do mean most people) is to open their desk drawer once a year, shuffle those policy documents around, realise they don’t understand them, just like last year… then put them back in the drawer for another year not really having any firm hold of their net worth or a contingency plan should disaster strike. Useless in my view!
Real Financial Planning, with qualified, passionate advisors, is about removing anxieties and exploring possibilities. Ultimately it’s about knowledge giving you the power to make informed decisions about the future.
I started off by asking why Financial Planning is so special. Now that I’ve shared what I believe it’s really all about, the question should actually be:
“Are you special enough to embark upon Financial Planning?”
To book an appointment with Gary Neild call 01202 756560.