It’s an old truth that failing to plan is the same as planning to fail. It follows that if you intend to be a financial winner, you will need financial planning to do it.
What is Financial Planning?
Financial success – finding that you have met your financial goals and can live the rest of your life with no money worries – does not just happen. It is certainly not a matter of buying the first financial product that comes along or investing in stocks and shares at random when you have some spare cash.
It needs to be planned and prepared for and needs expert help.
Financial planning is the process that will identify your plans and the ways to achieve them. At Continuum, we make it the basis of a long-term relationship with our clients.
We start our relationship by discussing your life goals– your financial objectives, like owning your own home, or being able to retire early.
Financial planning is the process that follows, developing an effective, costed strategy to meet those objectives – one which will make best use of your available resources and potentially maximise your returns.
How does it work?
Your financial plan will show the steps you need to take, the type and level of investments that you need to make, and the timescales you will need. It will support this key wealth generation strategy with other products – such as insurance protection – that you will require.
Your plan will be as individual as you are. It will balance the level of security that feels comfortable for you with the opportunities for growth you seek – and take into account your ethical stance. It will recognise that the future is unknown and provide flexibility and contingencies to help you potentially grow your wealth whatever the economic climate.
Of course, your objectives and your financial plan may both change over time. We will provide regular reviews to ensure that it remains on target.
What a Financial Plan will cover:
Financial goals: Everyone has their own financial goals and objectives. These might be buying a home – or a holiday home – starting a business, retiring early or leaving a legacy. Planning will quantify goals and use them as milestones to monitor performance.
Personal net worth: A snapshot of assets and liabilities is vital to establish the basis for your plan – how much growth you need.
Cash flow analysis: A review of your income and spending will show how much can be used for debt repayment, savings and investment each month.
Retirement strategy: The plan should include a strategy for retirement showing how the required retirement capital will be built up, and how it will be used to generate an income.
Risk management: This will identify the risks you and your family face and identify solutions such as life and disability insurance, personal liability cover, property and casualty coverage.
Long-term investment: Your plan will include customised investment strategy based on your objectives and risk profile. This will set guidelines for selecting and managing investments and benchmarks for performance review.
Tax reduction: Your plan may include ways to mitigate taxes on personal income.
Estate plan: If required, your plan can include measures to reduce the Inheritance Tax liability of your estate, increasing the proportion of your wealth that can be passed on to your loved ones.
At Continuum, we are the experts in Financial Planning. Our dedicated team of Independent Financial Advisers work with clients on a personal basis. Not only do we take the time to listen to your needs and design a financial plan around them, we will commit to working with you for the long term, keeping your plan for financial success on track. It means you always have a financial expert to call on.
To find out more, call us to see what a Continuum financial plan could mean to you.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
The Financial Conduct Authority does not regulate taxation and trust advice & will writing.
The value of investments and the income from them can fall as well as rise and you may get back less than you invested.