Although the terms are familiar, there is a big difference between the types of service your Financial Planner will provide and the work a financial adviser will do for you.
Financial Advice
Financial Advice relates to the specific task that your planner or advisor will carry out for you. Some tasks might include providing investment advice and arranging an individual savings account or pension. It addresses your specific needs, not looking into the future. An independent or restricted financial adviser can provide this type of advice. Restricted advisers can recommend one or a limited number of product providers. Banks and Building Societies usually offer restricted advice.
Financial Planning addresses your long-term objectives, hopes, and desires for the future and how you can achieve them. A good financial planner will help you develop a long-term financial plan that is continually reviewed and adjusted according to your changing circumstances. The plan should show you what you need to do to make sure your dreams and wishes come true.
Any long-term financial plan should also include an analysis of your income and expenditures (not just now but in the future), your assets and liabilities, your thoughts and feelings about investing, and your short-, medium-, and long-term objectives.
A good financial planner should show you how to reduce risk, whether to yourself, your family, or your assets (for example, investments, pensions, businesses, and property).
A planner that offers a comprehensive service will work closely with their clients to help them live the life they want, not just now but in the future.
Addressing issues such as never running out of money and maintaining your standard of living in retirement. A cautious and prudent approach to managing your money is at the heart of any good financial plan.
Less than ten years to retirement
For some clients, the service advisers provide will be sufficient. However, the closer you get to retirement, the more arguably you should have plans in place to ensure your finances are mapped out. If you feel that you need a financial plan, always contact your financial planner or adviser. They should be able to help; if not, find one who can.
We have developed our Lifestyle financial planning service over the last five years. It is specifically designed to help clients within ten years of retirement. If you would like to find out more about our service, please contact us.
