What is the Value of Financial Planning?

By FMB on 

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What is the value of financial planning?

Throughout our lives, we are all likely to face the need to take financial decisions that can have a major impact on our wealth. Whether you’re buying your first home, becoming a parent for the first time, investing for the future, or about to retire – a carefully thought-through financial plan can make a positive difference, throughout your life – no matter what stage you’re at.

You might think professional financial advice is only necessary when it comes to complex investments or pension planning, but even a seemingly straightforward financial goal could involve numerous decisions and a range of different products and providers.

The numbers bear out

Over the years, research has produced some interesting findings that highlight the benefit of advice when making major financial decisions. The results show that those who take advice are likely to accumulate more wealth, supported by increased saving and investing in equity assets, while those in retirement are likely to have more income, particularly at older ages. One study highlighted that receiving professional financial advice over a five-year period*, resulted in a total boost to wealth (in pensions and financial assets) of £47,706 in a decade (1).

Evidence suggests that fostering an ongoing relationship with an adviser leads to better financial outcomes. Those who reported receiving advice at both time points in the analysis had nearly 50% higher average pension wealth than those who only received advice at the start (1). Sadly, many people who buy complex investment, insurance and pension products don’t take the hugely important step of asking a financial adviser for help before making their decision.

*Between 2001 and 2006
(1) ILC, Revisiting the Value of Financial Advice, 2019

The true value of financial planning

Although the financial outcomes are important, we appreciate that the value of financial advice comes in different guises which can include enhancement of return on investment, peace of mind, confidence with money, achieving goals and realising opportunities, all combined with future security and ultimately ensuring you have enough money to support your future. Our aim is to work hard, so your savings have the best chance of growth for the future – without giving you sleepless nights in the process and help ensure you aren’t taking too much, or too little risk with your money.

A vital part of the advice process

Getting into the habit of meeting with us regularly to update your objectives and any changes in your personal circumstances which may affect your finances, such as buying a house, losing your job or receiving an inheritance, is essential. We will devise a strategy and asset allocation which complements your investment goals.

Where necessary, we will take action to rebalance your portfolio. Failure to rebalance after a good run in performance could leave your portfolio with a risk level that is inconsistent with your strategy.

Investors – remember:

  • What you must decide as an investor is how much risk is right for you
  • While the process of building a portfolio includes strategies to reduce risk, it cannot be eliminated altogether
  • Volatility is an inevitable part of stock market investing
  • It’s important to realise the likelihood of price fluctuations and accept that a degree of risk is all part of investing
  • Regardless of what amount you have to invest, we can help recommend the most cost-effective way to achieve a mix of investments, suitable for you.


We can help you make decisions about your money to help you meet certain goals and aspirations over your lifetime. Planning is a continual process of anticipating and adapting to changes in your personal circumstances over the long term. Working with us means that you’ll be benefiting from informed advice, reinforced by up-to-date market intelligence and years of experience. If you’d like help with life’s important financial milestones or feel that you could benefit from an assessment of your current circumstances and would like help devising a road map for your financial future then do get in touch we’re here to help.

Although financial planning is complex, we can help by:

  • Understanding your needs

Before we make a recommendation, we will build up a picture of your overall personal financial circumstances, agree with you on the areas you should prioritise and assess your attitude to risk

  • Discussing potential solutions

We can help to consider what products best suit you and your circumstances

  • Considering the options

We will look at all your options and make you aware of how the various products and investments differ

  • Making recommendations

Recommendations will be tailored to your needs, making sure you get the right balance between affordability and the suitability of products and investments you need.

Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for information purposes only.

The value of investments can go down as well as up and you may not get back the full amount you invested.

The past is not a guide to future performance and past performance may not necessarily be repeated. i.e past is not a guide to future performance and past performance may not necessarily be repeated.

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