Inspired by a trip to the website answerthepublic.com (which is always an interesting visit, try it if you haven't yet), I have been thinking about how this blog can be as useful as possible to readers.
Sometimes the content is technical, like with our recent explainers about Child Benefit and Tax Year End Tips.
But now, we're diving into something less technical yet equally useful: understanding the role of a financial planner.
This blog series is about all of those things you wanted to know about Financial Planners and Financial Planning, but never got the chance, or didn’t feel comfortable asking.
Before we delve into it, let's clarify something. In the world of finance, there are various labels used to describe roles : Financial Planner, Financial Adviser, IFA, Financial Coach, Wealth Manager, and more besides.
For the sake of clarity, we'll focus on the role of a Financial Planner in this piece, with plans to unravel the differences between the other roles in a future post.
I introduce myself as a Financial Planner. So, let's kick things off with the fundamental question: What exactly does a Financial Planner do?
As You Become a Client
The journey begins with your Financial Planner getting to know you—your hopes, fears, aspirations, values, and financial goals.
A skilled Financial Planner will not necessarily always take what you say at face value. If relevant, and you are comfortable, a Planner may gently challenge your assumptions and thinking. This is designed to help you uncover possibilities you may not have realised existed.
This deep understanding of you forms the foundation upon which your personalised financial plan is built. This is where things move from conversation to becoming visual.
A financial plan is not just a document; it's a visual roadmap tailored to your unique financial situation. Using sophisticated software and sensible assumptions, your Financial Planner crafts a holistic view of your finances via a cashflow forecast, projecting your financial future based on current data and long-term goals. You and your Planner go through this forecast together in a meeting and can look at 'what if' scenarios, to see the possibilities that lay before you.
This forecasting helps in lots of ways. It identifies where you are on track and where you may need to change course to be able to do the things you want, without fear of running out of money later on.
This helps with that age-old issue of 'living today vs. saving for tomorrow'. Without this longer-term picture, you can otherwise only go with a gut feel of whether spending is affordable or not.
Typically a planner will then send you your financial plan as a document, containing key highlights and commentary related to the forecast you went through together, and outline recommendations for how you can improve your position both now and in future.
After Planning comes Advice and Implementation
Once the plan is in place, it's time to put it into action. This may involve adjustments to your savings, investments, insurances or retirement plans. Whether it's a minor tweak or a life-changing revelation, your Financial Planner guides you through the process, recommending specific actions and products (think ISAs, Pensions etc) to help get you closer to your goals.
Implementing the plan and advice can be daunting, but with your Planner's expertise, it should become seamless. From choosing the right investment platform to optimising tax efficiency, they handle the details, ensuring your money is in the right place.
What Comes After?
Financial planning provides the most value to you when it is an ongoing process, not a one-time transactional effort.
Your planner schedules regular check-ins to review your progress, reassess goals, and make necessary adjustments. These meetings provide the time and space for you to think big picture about what you truly want, something rarely afforded in our busy lives.
This ongoing relationship is where the true value lies—built on trust, expertise, and a deep understanding of your life and how your money plays its part in that.
What Else?
Whilst the process above is the same for every client, no two people are ever the same.
There is nearly always other things for a Financial Planner to help with. It could be ensuring you've got your Will and Power of Attorney up to date. It could be working with your accountant if you're a business owner to ensure your business and personal finances are aligned, or it could be to introduce you to a fellow professional to help put in place private medical insurance.
If it's to do with your money, your Financial Planner should be able to help, or introduce you to someone who can.
The Greatest Value-add
While the tangible benefits of financial planning are evident, the intangible value lies in the relationship between you and your planner.
Beyond numbers and spreadsheets, they're there to support you through life's ups and downs, offering guidance, empathy, and sometimes, a friendly nudge in the right direction.
From a personal perspective, I genuinely believe it is one the greatest careers out there. I'm privileged to know the clients that I serve on a personal level, far more than other professionals get to with their clients.
At times I get to share in a client's happiness at how life is going, and at other times help pick them up if they need it.
I've been to client funerals, and likewise been there to help celebrate the births of children and grandchildren (not literally 'there' I should say!).
A Financial Planner's role goes beyond crunching numbers; it's about empowering you to live the life you envision.
Whether it's achieving financial security, planning for retirement, or navigating life's milestones, your planner is there every step of the way, as much as you want them to be.
That is why if you scroll to the top-left of this web page, you will see the the words 'The financial guide by your side' as part of the Lab logo.
If you'd like to talk to us about your situation to see if Financial Planning can help, you can book in an initial consultation here:
Otherwise, see you next time.
The information contained within this blog post should not be taken as financial advice, as it does not take account of personal circumstances, which would affect advice given. Should you wish to talk to us about personalised advice for you, we'd be happy to do so.