Financial Planning Process

Financial planning is the process of managing your finances effectively to meet your life goals. The financial planning process will help you look at the “bigger picture” of where you are financially.

Read our Financial Planning Brochure here, or read on. A useful Financial Planning Questionnaire to get you started can be found here

 

Can you consider the short and long term effects of financial decisions on your life goals?

  • Can you adapt to life changes?
  • Do you feel secure that your financial goals are on track?
  • Are you viewing each financial decision as part of a whole?

Planning for your future demands that you stay focused on your goals, which will change from time to time. Financial worries do not necessarily derive from lack of money, but more often from lack of planning.

The aim of Financial Planning is to help you to identify and achieve your financial goals and objectives in order that you may achieve the lifestyle you desire.

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Ultimately there are likely to be one of three outcomes in your financial plan.

Either, your assets will grow indefinitely, you will eventually run out of money, or your asset base will grow until retirement and then gradually deplete.

Scenario One. If your assets continue to grow indefinitely then you may wish to consider reducing the investment risk you are taking to achieve your goals. You could also plan to achieve these goals earlier and consider the use of IHT efficient savings products to preserve your wealth for the next generation.

Scenario Two. If you eventually run out of money you may wish to reduce your expenditure. Alternatively, review your expectations – are they realistic? You can look to make your investments more tax-efficient and consider increasing your investment risk.

Scenario Three. The ideal scenario is for your asset base to deplete gradually in retirement. Ultimately, the ideal scenario is to run out of money on the day you die!

Admittedly this is very difficult to plan for but as long as you have disinherited the HMRC on death you will have achieved the final goal. Any assets below the nil rate band on death can be passed through your estate into the hands of your beneficiaries free from Inheritance Tax

We will review your plan at least once each year and at significant life events – such as marriage/civil partnership, birth or adoption of a child , purchase of a new house – so it reflects your changing goals and financial situation