complete financial planning under one roof
· Lifestyle & Cashflow Planning ·
· Independent Financial Advice ·
lifestyle based financial planning
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lifestyle based financial planning
What is financial planning and how is it different to financial advice?
There are many instances where financial advice is required, related to a specific transaction and there is little need for detailed financial planning. Examples are arranging a mortgage to buy a house, taking out some cover to protect your family or setting up an ISA to save each month. Obviously it is important that professional independent advice is taken to ensure that the most appropriate arrangements are made.
Financial planning is different and whilst financial advice does play a part in the process, the main focus should be on your lifestyle requirements, your plans and dreams for the future, your long term strategy to create and preserve wealth. Financial products and policies are required to facilitate the financial plan but their importance is secondary to that of planning and strategy. Having lots of different policies without having a clear understanding of how (if) they work together towards your financial objectives, is likely to be an inefficient use of resources.
Our comprehensive lifestyle financial planning service is much more than just financial advice. It's about helping you to define, achieve and maintain your desired future lifestyle.
Our service is a five-stage process. Click each tab below to find out what each stage comprises of.
1. Lifestyle planning
In the financial planning process our role is to help you achieve your financial & lifestyle goals. In order to do this, we must first establish a good understanding of what you want to achieve and what makes you tick. The first planning meeting that we hold is a personal ‘discovery’ meeting and the purpose of this is to:
- discuss and agree your future plans, aspirations & 'life goals';
- help you to establish what you really want from life;
- understand your current financial position and existing arrangements;
- consider your 'what if's' – for example, what if we retire early, what if we downsize to buy a holiday home abroad;
- discuss and agree your planning assumptions (estimated future investment returns, inflation, interest rates etc.);
- agree your primary financial planning objectives;
- help you to understand and establish your and attitude to risk and loss;
- gather and collate all relevant information.
2. Cashflow planning
Once all of the required information has been gathered and collated, we will create your lifetime cashflow forecasts. These forecasts bring together your planning assumptions, your current provisions, your objectives & goals and include very detailed calculations around your future financial position. They are a key part of your financial plan and provide a clear understanding of the issues that need to be addressed in order to ensure that your objectives can be delivered.
3. Creating your financial plan.
The cashflow forecasts are a very powerful tool and will, possibly for the first time in your life, illustrate where you are on the ‘map’ relative to your desired future lifestyle. At the meeting to create your initial financial plan, we will:
- analyse and evaluate your current position;
- review your 'life goals' and progress towards them;
- identify and report planning shortfalls and issues;
- review your 'what if's' and agree how these need to be planned for;
- show you how to become financially better organised;
- discuss and agree your planning strategy.
4. Implementing your financial plan.
Once we have developed a clear understanding of your financial planning position and agreed the actions that are required to move you towards your objectives, it is important to put the plan into action. The latter part of the planning meeting will focus on this and together, we will:
- review and prioritise your planning shortfalls;
- agree capital and income budget to be allocated;
- agree actions to be taken now;
- agree schedule for actions to be deferred;
- where appropriate, make agreed changes to your existing policies;
- where appropriate, implement new policies.
5. Revisit, review and re-balance.
To ensure that your plan remains effective and to check that resources are always being allocated in the most appropriate way, we will meet each year to review your position. At each annual planning review meeting, we will:
- revisit your stated plans, aspirations and 'life goals';
- re-establish your attitude to risk and loss;
- update your financial position and cashflow forecasts;
- review performance of existing arrangements;
- measure progress of your planning strategy towards objectives set;
- refine and rebalance your plan as required.