A Financial Planner, The Advantages Of Having A Financial Plan & The Importance & How This Benefits Clients

Ceri Hayday
Investment 2024

Please note that the value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

A well-designed financial plan helps the Financial Planner define and prioritise clients financial goals. It provides clarity and direction for achieving those goals, outlining actions and timeframes to secure the client’s financial future.

The Financial Planner will make informed decisions based on a thorough analysis of the client’s current financial situation, future aspirations and help assess options and strategies that support the client’s aims and build a solid foundation, for immediate and future goals.

The Financial Planner will use their expertise and incorporate financial security and risk strategies within their plan, for example, insurance coverage and emergency funds, to protect clients against unforeseen circumstances, which will provide a safety net and help to tackle any possible challenges along the way.

Savings, Investments, and Pensions will be encouraged towards specific lifetime goals, for example, marriage, families, holidays, retirement, and future long-term care, using a holistic approach. This will help advise on the most suitable investment choices against the client’s risk tolerance, investment time horizon, considering tax efficiency and expected returns.

In terms of the client, financial planning and understanding the plan, can help eliminate stress and give clients peace of mind, knowing they have a planned approach to managing their money, over their lifetime, and having a sense of control and confidence in their Financial Planner.

Of course, all planning will vary depending on individual circumstances and goals.

What clients should consider, when choosing a Financial Planner:

Clients should consider the Financial Planner’s qualifications and professional credentials. Look for certifications, licences, and memberships in reputable industry associations. Both the Financial Planner and/or the financial company should be recognised by the Financial Conduct Authority (the regulatory body that regulates the Financial Services Industry).

Clients should access the Financial Planner’s experience and expertise; an experienced Financial Planner will have in-depth knowledge and insights into specific areas and products. Clients should consider how many years the Financial Planner has been in the industry, how many years they have been advising, researching their achievements, and any specialised expertise they may have. Finally, review the company website for any recent testimonials or case studies that will give the client a perception of previous client satisfaction or dissatisfaction, to give you reassurance.

Make sure as the client, you are fully aware of the services the Financial Planner provides and whether it suits your specific needs. Some of the areas Financial Planners focus on are investment management, retirement planning, tax advice, and estate planning, whilst others will provide more comprehensive financial planning, which could include, trust planning and defined benefits advice. There are also various high risk tax savings schemes such as, enterprise investment schemes & venture capital trust investments, that some advisers may specialise in and have a strong understanding of.

It is also good to confirm before a client fully engages with a Financial Planner, what will the communication style and availability be. How often will they be in contact and give regular updates? Are they easily contactable and available to discuss any concerns or have any questions? Communication is key for any Financial Planner and client relationship.

Any competent Financial Planner should prioritise your best interests and demonstrate integrity in their practices.

Clients should also understand the fee structure and costs of any advice given. The fees should be transparent and given clear and not misleading. Does the Financial Planner charge a percentage of assets under management, an hourly rate, or a fixed fee? Make sure you as the client are comfortable with the cost and that it meets your expectations and the value you expect to receive.

Choosing the right adviser is a personal decision and is it essential to research and consider specific needs, before making your choice.

How can Nelsons helpAdvantages Of Having A Financial Plan

Ceri Hayday is a Paraplanner in our expert Investment Management team.

For further information, please get in touch with Ceri or another member of the team in DerbyLeicester, or Nottingham on 0800 024 1976 or via our online form.

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