You are in charge of your own finances. This is why you need to have a plan for how that looks in the future and how you will manage it. Part of having a financial future that works for you is working with a financial planner. Effective financial planning can be the difference between a small nest egg and comfortable living later in life.
So why should you use a financial advisor for your financial planning?
It is a misconception that financial advisors are only for people who have a high income or a lot of savings. A financial planner is essential for almost everyone. No matter what you currently have saved or how much you earn – there is a way to plan for a secure future with innovative financial planning.
Let’s take a look at the benefits of financial planning.
Family
Maybe you already have a family, or maybe you are planning for your future family. Either way, you likely want to provide for your family in the future. A financial advisor will be able to talk to you about which products are worth your investments and which aren’t. As well as give you advice on the best way to protect your assets.
Budget
Your income and your outgoings, your spending, and your saving. These things will be taken into consideration, and you will see the space that you could be making savings. Savings are built up over time, and while at first, they are usually for putting out fires and paying for emergencies – after a while, they become a plump cushion that will cover the cost of luxuries like holidays.
Good and appropriate financial planning will help you build your wealth as efficiently as possible, regardless of how much you earn.
Assets
Although you are looking to build your overall wealth, there should be some protections in place too. The right combination of assets for you will be as much about investing within your risk comfort level and creating a diverse portfolio.
Your financial advisor will work with you and create a detailed risk profile.
You shouldn’t put all of your savings and investments in one basket. This is why your financial advisor will always look to create an innovative and tailored plan that meets your needs.
When it comes to investments, it is vital that you don’t put all of your cash in one place. Diversification will increase your chances of protecting your investments over long term.
Retirement
You will likely have a list of short-term needs that you will need to plan for, and long term you’re likely planning for retirement.
Planning for retirement is usually more complicated than people assume. While there is a state pension, it might not be enough to live on comfortably. You can create a long-term savings goal for your retirement with your financial advisor.
Retirement options are wide and varied. While you should spend time understand your options, you should speak to a financial advisor who can clarify all of the options, and help you create a long term investments plan that will maximise what you will have in your nest egg.
Mortgage
The mortgage market can be a complex place, and the decisions made usually have a high value. Between saving and budgeting for your down payment, you will need to carefully select the mortgage that makes the most sense for you circumstances.
A financial advisor will be able to save you time and money. Any advisor will be ensuring that they find the best rates for you, as well and guiding you to the quickest way to save for your downpayment. During your financial planning you will be able to find the most viable borrowing level for you.
When you have a financial planner on your side you might be able to access rates and lenders that have otherwise been out of your reach.
Goals
You will likely be setting a range of financial goals for your future. The house you picture yourself in, the amount of savings that you want in your bank, and the lifestyle that you want. Setting financial goals is one of the most important things for you to do.
Your financial planner will be able to run through multiple scenarios that make your goal achievable. Some of them will require different investments, and other will require more strict savings and budgeting. Physiologically, setting goals is the easiest way for you to make sure that you achieve.
Saving
After you have been through many of the questions and assessments with your financial advisor, you will have a clear guide for your saving. There will likely be multiple saving options that you can take advantage off. Some of them will be automatic savings, others will be longer term savings like ISAs and your pension plans.
If you need to have complicated saving arrangements,your financial advisor will be able help you to maximise your savings. Your tax position is always going to be the most important think to your financial advisor.
Accountability
When you are on a journey for saving and investing, from time to time, you need to have some accountability. Your investments and spending/saving behaviour will be monitored, and your projections will be adjusted over time. This will mean that you have a realistic overview of your finances as time goes by.
Sounding Board
There are a lot of decisions that need to be made when you are planning your future finances. You might not be set on a specific path, but it might turn out to be the right thing for you. Talking to your financial advisor might highlight some valuable and important financial options that you didn’t know what you had before.
A financial advisor can give you direction, support, and actional steps to create a comfortable financial future that will include your family, a home, your business and more. Long term financial investments are something that you really should have professional information and advice in order to maximise your potential returns.
Moving Forward with your Financial Planning
Sensible financial planning can really help you to reach your goals and enjoy the future you are striving for without having to make too many sacrifices now, by investing in the right places, putting your savings into a plan that offers excellent returns, or saving money elsewhere like reducing the payments on your mortgage being able to get where you want to be can be far more achievable than you may first think.
However, without the right help and advice it can also be really easy to make bad decisions or invest in something that carries far more risk that you first thought and to lose out in the long run so seeking the help of a trustworthy and reliable financial planning service.
The content of this article is for general information only and should not be considered advice. Professional advice relating to your individual circumstances should always be sought prior to making any decisions or taking any action. All details were correct at the time of writing.
