When you are trying to visualise your future retirement, we recommend looking beyond numbers. Instead, start by assessing your values, aims and aspirations and the lifestyle you wish to lead both today and in the future. We explore the benefits of creating your ideal retirement based on a lifestyle-first approach and values-led financial planning.
What is values-led financial planning?
Values-led financial planning starts by considering a client’s core values before focusing on their figures. By understanding what’s important to someone’s life, such as their priorities and personal goals, we can make more meaningful financial choices for our clients.
Values underpin our goals and aspirations. By starting with your values, you will get a better understanding of what’s really important to you, so you can plan your ideal retirement. Typical values to consider might include the importance of family security, community support, health and wellbeing, personal growth and financial independence.
As members of the Kinder Institute of Life Planning, our financial planners ask certain questions to get a deeper understanding of our clients’ values. As an example, we might ask what moves, touches or inspires you. This thought-provoking question will encourage you to reflect on those moments when you felt fulfilled and what really matters to you.
When it comes to assessing your values, you could start by journaling. Ask yourself what you would do if you had more time or money? If you’re uncertain of your future plans, the answer to this question might help to inspire your retirement dreams.
What is lifestyle financial planning?
Whether you prefer a simple, sustainable lifestyle or you have a big bucket list, it’s important to check that you have enough money to live your current lifestyle. Otherwise, you may need to consider certain compromises to achieve your ideal retirement.
Lifestyle financial planning is necessary if you want a successful retirement plan. Your money needs to be able to support you both today and in the future. By applying your values to your ideal lifestyle, you can create a financial plan that will help you realise your aims.
When you know what you want in life, you will be in a much better position to work towards achieving your plans. It’s not enough to make assumptions. Instead, think about what inspires you, as this might generate ideas for things you can do in the short and long term.
Financial planning should be centred around a vision of what you want, and it should provide you with a plan on how to get there. But you need to feel in control of your wealth and have peace of mind that your money is being managed efficiently. The solution is to carry out a cash-flow planning exercise, so you have a clearer picture of your financial position.
What are the benefits of cash-flow modelling?
Cash-flow planning is a key part of retirement planning because it helps you forecast your finances over your lifetime. It takes into consideration your goals and it accounts for different scenarios that might arise throughout your life. Ultimately, it makes you much more resilient.
Your cash-flow plan is a visual representation of your financial roadmap. The main benefit is the fact that you can see your current and future financial position. Cash-flow planning provides a detailed look at your incoming and outgoing money, allowing for all eventualities.
There are many scenarios that can affect your savings and investments, including periods of high inflation, low investment returns, and big life events. Nobody can see into the future, but by using a cash-flow modelling approach, you can prepare for potential money pressures.
Using sophisticated cash-flow planning software, you can view several “what-if” scenarios, based on different decisions. This enables you to see what would happen in a worst-case situation and the impact of a change of circumstances on your financial plan. It can also help you determine when you will be able to afford to retire and chase your dreams.
Shortlisted for Money Marketing Best Retirement Advice firm
By becoming empowered over your financial position, you can create your ideal retirement. Our approach to retirement planning ensures that you’ve set aside enough money for today and tomorrow. By using a cash-flow modelling approach underpinned by values-led planning, you can enjoy a balance between a fulfilling lifestyle and long-term financial security.
At Balance: Wealth Planning, we can provide clarity about what you have, and how that might change in the future. We’re proud to have been shortlisted in the Money Marketing Best Retirement Advice firm, which we won in 2024. We’re also proud of the many awards and certifications we’ve gained over the years. Our Certified Financial Planner status can only be earned through rigorous education, examination, experience and ethical standards.
For retirement advice and values-led financial planning, get in touch with our financial planners.
Sources:
(Balance Wealth website)
https://m1.com/knowledge-bank/values-based-financial-goals-align-your-wealth-with-your-beliefs/
https://citygatefp.co.uk/about/what-is-lifestyle-financial-planning/
