Over the last few months, you might have read What is financial planning? and What is the difference between financial planning and financial advice?, the first two articles in your three-part guide.

At HA&W we strongly believe in financial planning and the value it adds, and our holistic approach is based on helping you to achieve your long-term goals. We do this by considering your overall financial position and by looking to form a lasting relationship with you.

This month, in the third and final part of your three-part series, read about how financial planning directly benefits you.

1. A financial benefit of £47,000 over ten years

Last year, Royal London, in partnership with the International Longevity Centre UK (ILC), released its “Feeling the benefit of financial advice” report.

It found that those who took financial advice were, on average, £47,000 better off over 10 years. Of those that sought financial advice, those that built an ongoing relationship with their adviser were 50% better off than those that saw an adviser only once.

While this figure is an average, it is also worth noting that the 10-year period used in the study included the 2008 global financial crisis.

So, how does financial planning make this happen?

2. Help with setting short-term goals

The long-term benefits of financial planning all begin with short-term changes to budgeting and understanding your cashflow.

We can use cashflow modelling, and our wealth of experience in the financial sector, to help you understand the money you have and where it is going. Making use of simple budgeting techniques, we can help you split your outgoings into wants, needs, and financial goals.

Putting an emergency fund in place, paying off high-interest debt, and saving for your future will build the foundations on which your retirement plans will stand.

3. Understanding what your long-term goals are

Financial planning doesn’t just help you achieve your goals, it can help you understand what those goals are, too.

Taking the time to think about the future allows you to build a picture of your dream retirement.

That might include world travel – seeing the Northern Lights, travelling on the Orient Express, or hot air ballooning over the Serengeti. You might want to downsize, using the excess money to support, and spend more time with, your grandchildren.

Once you know what your plan is, HA&W can help make it a reality.

4. Emotional wellbeing

The benefits of financial planning aren’t just monetary. The Royal London and ILC report also looked to quantify the impact of a long-term plan – and an ongoing relationship with a trusted planner – on clients’ emotional wellbeing.

It found that there are three main emotional benefits to financial planning. They are:

Greater confidence

The financial plan we help put in place will be based on your individual circumstances and your long-term goals.

Knowing that HA&W are on hand to help you, whatever financial situation arises, will give you confidence that you will reach that goal.

In fact, 34% of respondents to Royal London’s survey confirmed that having access to financial expertise made them feel more confident in their financial plans.

You’ll also get the reassurance of our regular reviews, helping to keep you on track whatever happens in the wider financial world.

A sense of control

Receiving professional financial advice creates a sense of financial control for 34% of those surveyed. That’s the benefit of a long-term plan.

A firm grasp on your cashflow frees you up to live the life you want to live now while saving for the lifestyle you want in retirement. Minimising high-interest debt, maintaining a rainy day fund, and making affordable contributions into investments and pensions puts you in control of your own financial future.

Peace of mind

Peace of mind was the main benefit of having regular contact with a financial adviser for 32% of survey respondents. Not only are you in control and confident in your financial future, but you also know that the present is sorted too.

We can also help protect you and your family against the unexpected, using protection policies. They can guard against a sudden loss of income, accident or illness, and even death.

You know that you and your loved ones will be looked after whatever the future brings.

5. Managing investment risk

We can help you manage risk in your investment portfolio. We do this by first getting to know you and your risk profile.

We can then use diversification to spread investment risk, while constantly reviewing your holdings to ensure they stay aligned with your profile.

Whatever your long-term investment goals, at HA&W we can use our decades of combined experience to help you achieve the best possible returns, for the lowest amount of risk.

Get in touch

Financial planning is about much more than the transaction-based relationship you get with a financial adviser. Our chartered planners will work with you to build an ongoing relationship and a long-term plan as individual to you as your goals are.

Please contact us to find out what our financial planners can do for you, or to book in your regular review.

Please note

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.