A financial plan helps to get your finances in order, grow your wealth and achieve your goals, but how does it really work? Here we explain the five areas of a financial plan and how they work together to help our clients to achieve their dreams.
A Financial Plan is a long-term strategy for achieving your goals by managing and growing your wealth.
It works in tandem with your life plan, adjusting and growing your finances in order to enable you to do the things you want to do in life. You can learn more about how we help you to identify and create specific, achievable goals on our website here.
Once we are clear about your goals we will work with you to create your plan to achieve them. A financial plan focuses on five different areas in order to enable you to get the most out of your money and plan for the future. These areas include looking at how to protect your money, how to budget for your goals, how to minimise debt, and planning for the future.
They work together to achieve your short and long-term goals. For example, if you know you want to buy a house in five years, and retire in ten, then your bespoke financial plan will use these areas of planning to ensure you're in the right position to buy your house, as well as put measures in place over time to prepare you for retirement. And alongside planning for your personal goals, a financial plan takes into consideration and plans for the parts of life that we all need to be ready for, such as supporting a family or planning our legacy.
To get a better idea of how the financial plan works, take a look at each area of the plan below:
1. Protection Planning
What could stop you from achieving your goals?
The first part of the plan will centre around analysing the risks in your financial life and dealing with them. When the inevitable storms arise, you'll be well prepared and able to face the future with confidence.
2. Budget, Debt & and Tax Planning
How will you organise your money and repay your debt?
We'll look at how much money you need to live the lifestyle you want, both now and in the future. We'll make sure you have an emergency fund to fall back on, and that money is set aside to pay for the big events in your life such as a major holiday or a house move. We'll review your tax position and help you keep taxes to a minimum, and we'll work out where your income will come from during the rest of your life and how to improve it. Borrowing can help you to achieve your goals by funding a new home, a business, or allowing you to preserve other assets. But excessive debt is a cancer that will destroy your goals and wash away your plans. We'll help you to make sure that your debt is working for you, not against you.
3. Retirement Planning
How will you plan for retirement?
We'll help you plan for your future by making sure you're getting the best out of your retirement, and that your and the future of your loved ones is secure. Often our clients don't realise that they are already in a position to retire, or the steps they need to take to get to this point. We use our expertise to pinpoint the actions you need to take and make a plan to get you there.
4. Investment Planning
How should you invest?
Many people don't understand the impact that modest improvements in returns can yield over a period of years. Our skilled investment team have been helping people to achieve their goals and enjoy long and happy lives for two decades, and they can do the same for you. We'll help build a strategy that works for you, based on your own individual circumstances and requirements.
5. Legacy Planning
What will you leave behind?
Legacy Planning isn't just about your arranging your Will and reducing Inheritance Tax, important as these are. It's also about the ongoing legacy that you create today for your family, your business, and the people closest to you. We'll help you work out a plan to use your assets to the very best effect.
A financial plan is a roadmap that supports you in planning for and achieving your goals. If you think you could benefit from a financial plan, why not get in touch with us today? You'll be working with a dedicated, knowledgeable, and professional team who are focused on helping you achieve your goals.