The Future of Financial Planning

With the alarming news headlines we are seeing at the moment regarding the UK economy, many people are wondering what their financial future may look like as a result, and this is where financial planning comes in.

‘Financial advice’, as we traditionally know it, has transformed over the years. Long gone are the days of door-to-door sales of a single policy, pension scheme or ISA where you had little to no relationship with the person providing you with this.

A key transformation in our line of work is the step into financial planning, not just financial advice. Providing well-informed, high-quality advice is one part of our service, however, planning for the future and ensuring that all plans work together seamlessly to fit your objectives is almost an entirely different realm. Historically, financial advice revolved around producing a report with recommendations for you to take forward, but it may not always be obvious to you how this will affect your finances in the long term.

A main factor in the emergence of financial planning could be said to be the major advancements in technology within the financial world, as financial advice can then be aided by technology to look at the bigger picture and make forecasts for the future. This is incredibly important when clients come to us with questions such as “When can I retire?”, “How can I save money for my children’s future?” or “What happens if I am unable to work?”.

Whilst no one can predict what the future has in store, financial planning tools allow us to calculate an assumption based on your current financial circumstances. With the use of cash-flow modelling, financial advisers can generate a visual image of your future based on your individual financial circumstances today and the current plans you have in place. This can incorporate complex areas such as tax planning, whilst making these technical topics easier to explain and understand. By using assumptions, we can produce a likely outcome of what the future may hold, which can either be reassuring to you or highlight some areas for concern. By using cash-flow modelling this way, we may be able to identify any shortfalls, and then create plans and recommendations to address this moving forward.

The development of financial planning allows us as Independent Financial Advisers to be more in tune with the emotional side of financial advice and have a greater understanding and relationship with our clients. Likewise, we have found that many clients are able to understand their finances better with the use of such tools and makes the image of their own financial future clearer in their mind.

Whilst we are still in a difficult period of volatility, we wish to reassure our clients that planning for long-term goals with a long-term strategy is still of great importance. Whilst attention-grabbing headlines may be weighing on your mind, remember that your Independent Financial Advisers are here to discuss any worries or questions you may have and help you get a better picture of your financial circumstances both now and in the future.