Focus on the bigger picture

If any of this sounds a bit off-putting or even intimidating, then I’m here to explain why financial planning looks a whole lot different these days.

What matters?

Rather than the focus being entirely on numbers and graphs, the first thing you and a financial planner will discuss is your goals, values and essentially what you want to get out of life.

People are motivated by life goals and experiences, and these form the basis of a good financial plan. It considers elements that don’t necessarily have a clear monetary value, such as having more time with family or achieving a better work-life balance.

These are all key considerations and go beyond a one-off conversation. Establishing what you want from your life and money can and should take time, evolving as and when priorities change over the years.

This is why those who have a financial planner tend to build a relationship that can last years, even generations. In this type of long-standing relationship between a financial planner and their client, trust, empathy, and close communication are an integral part of successful outcomes.

Of course, financial decisions remain central to these conversations, but a key difference between ad-hoc financial products and full financial planning is the consideration of the your life’s bigger picture.

Your financial starting point and goals are personal to you, although it can be hard to tune out the noise and influence of others when establishing your priorities.

It isn’t always easy to stay focused – however, having the guidance of an experienced team will encourage open and honest conversations about money, financial goals and what you want to achieve.

A solid foundation

With gamified investment apps, constant noise over markets, and changing legislation that come with every Budget, it can be tempting to either jump headfirst into “DIY” investing or feel lost, switch off and bury our heads in the sand, leaving our finances for another day.

Life moves quickly and there can be a tendency to focus on the short-term, tangible goals such as holidays or cars, without considering what we want –and importantly – how much we need, over the longer term.

But research studies have shown that having a plan in place for your finances and your future over the long-term is good for your mental wellbeing, significantly easing people’s worries about money and providing peace of mind.

Life will always have its ups and downs, and even the best laid plans can be tested. A financial planner will combine their knowledge, experience and financial modelling to map out different scenarios based on detailed income, expenses and savings over time. This provides a clear view of the potential impact of life’s changes on your financial future.

Similar to an arrangement with a sports coach or personal trainer, a plan is agreed and implemented with an annual meeting to review and check in that you are on the right route for your destination. This provides a clear long-term plan for you to consider your options, make informed decisions and give you that all important peace of mind.

There is always a need to be aware and take responsibility for managing your financial future, especially with legislation shifting regularly including Inheritance Tax on unused pension funds from April 2027 or, most recently, changes to ISAs or limits on salary sacrifice arrangements.

Sam Goult is a financial planner and director at AC Wealth