What are the benefits of financial planning?

what are the benefits of financial planning?

It was World Financial Planning Day on 4th October, which celebrates the value of working with a financial planner. So, what are the benefits of financial planning and why should you consider putting a plan in place? Let’s explore the different advantages and how this can help you and your family, both in the short term and the long term.

Lifestyle planning

Most of us want to live a certain lifestyle, but not everyone can afford to live how they choose. However, for many people, it might be possible to achieve their aims and aspirations once they have a sound financial plan in place. Financial planning can help you take your first steps onto the property ladder, start a business, or fund luxurious holidays.

Our financial planners will spend time getting to know you and your priorities. We will talk through the lifestyle you desire to see how we can help you realise your goals. We would provide you with a detailed cash-flow plan, so you can see your current and future financial position. Using sophisticated software, we will then produce a Lifetime Wealth Forecast. Our financial planners will advise you on ways to manage your money, so it works harder for you.

Tax-efficient savings

One of the most common ways that professional financial planning can help you manage your money is by placing funds in tax-efficient wrappers.

Everybody has a personal savings allowance, this is based on their tax status.

  • Basic – rate taxpayers = £1,000 allowance
  • Higher-rate taxpayers = £500 allowance
  • Additional rate = £0 allowance

Once your accumulated interest goes over this threshold, you would be expected to pay tax on the additional amount. Due to the high interest rates, some people have found their interest has risen over this allowance, resulting in a tax bill.

An ISA, for example, allows you to save up to £20,000 per year tax-free. Another option could be putting more money into a pension scheme. Financial planning solutions like these enable you to save more efficiently without having to pay unnecessary tax bills.

Retirement planning

As well as helping you plan your current lifestyle, financial planners will enable you to put plans in place for your retirement. Our team will look at your pension forecast and advise you on whether your projected income will be enough to support you throughout your retirement. We will look at “what if” scenarios to show you possible outcomes of certain decisions. We will then assess your current savings and investment strategy and advise you accordingly.

When it comes to pension or investment planning, we will look at your attitude to risk. Together, we will create a financial plan to help you achieve your aims, which will be reviewed regularly to ensure that you stay on track. One of the ways we often help our clients is to enable them to achieve financial freedom. This is where you have enough wealth to retire, if you choose, and live the life you desire without having to work.

Business planning

If you are a business owner or stakeholder, financial planning is vital. Firstly, you may need to consider ways to protect your business interest in the form of key person or stakeholder insurance. There may also be tax-efficient ways to reduce corporation tax through company pension schemes, which are considered as allowable expenses.

Exit strategies and succession planning are an important part of a business lifecycle. You might plan to pass your business onto your children when you retire. You might decide to sell your business or sell your share to a fellow stakeholder. These scenarios may have tax implications, which is why planning your business financials is essential.

Emotional security

It’s important to remember that financial planning not only gives you financial security, but it offers emotional security too. Money problems cause people a lot of stress and worry, especially when you’re raising a family or you’re approaching retirement.

Being able to manage your cash flow with the help of a financial plan will give you peace of mind and help you prepare for any big life events.

Financial protection

One of the ways financial planning can help you feel securer is its ability to protect your family and your lifestyle. There are certain forms of protection that can help you safeguard your income should you fall seriously ill or unexpectedly pass away. Whether through a lump sum or monthly payments, insurance can help you pay your mortgage, bills and any debts.

When it comes to financial planning, our team work hard to protect our clients’ wealth. Our aim is to give you clarity and control over your money, so you can achieve your aims and aspirations. Our forward-thinking, innovative approach has won us various accolades over the years. We’re recognised nationally for our contribution to the financial planning profession.

Financial advisers, Lincoln and Nottingham

Did you know that as well as having our head office in Nottingham, we’ve also recently opened an office in Lincoln? Led by Chartered Financial Planner, Susie Lovell, our new office is situated by the scenic waterside location of Torksey Lock.

Susie and our team can provide video calls, as well as seeing clients face to face. Our Lincoln office has on-site parking and is just a 10-minute drive from the city centre and 20 minutes from Newark. Read more…

Would you benefit from a financial review? Get in touch to speak to our financial planning team.


(Press release)