Financial planning is important in allowing you to manage your income, expenses and investments. Effective financial planning can help you reach your financial goals, prepare you for emergencies, give you financial security and even lead to early retirement all of which ultimately help to improve your standard of living.

Why financial planning is important

Not everyone is interested or aware of the importance of financial planning despite it being available to everyone. It is worth noting that it is not dictated to your salary or asset level and can be as simple as putting small amounts of money away into savings pots such as house funds, wedding funds, pensions and life insurance.

The main reason why people plan financially is to give them financial security for the future. Financial planning is an excellent way to reserve future cash flow by helping you to maintain discipline by setting targets and aiming to reach them. The importance of financial planning is that it helps you to better understand your money better, organise spendings and savings and establish clear financial goals.

Who can help with financial planning

Financial planning is something that anyone looking for financial security might want to consider, however, to do it effectively, it may be best to speak to an independent financial advisor (IFA). An IFA offers independent advice on financial matters and can help you make the most of your investments and keep them secure.

One of the UKs leading IFA’s is Suttons who through their expert knowledge on legislation and regulations, as well as their years of experience in the field can recommend suitable financial products from the whole of market and help to calculate when you can afford to retire.

Examples of financial planning services

There are a number of areas involved with financial planning and everyone will need tailored advice to suit their circumstances. Some examples of financial planning services offered by many high performing independent financial advisors include:

  • Savings
  • Pensions and retirement planning
  • Mortgage and equity release
  • Investment advice
  • Illness and life insurance
  • Inheritance tax

Benefits of using an IFA for financial planning

There are a number of benefits of using and independent financial advisor, this includes:

  • High level of expert advice and support
  • Personalised guidance based on your financial circumstances
  • A simple and transparent fee structure
  • Your money is held by an independent custodian, not the advisor firm
  • Can help to reduce tax
  • Grow value of your pension and savings through investment

Disadvantages of using an IFA for financial planning

  • Financial advisors cost money and not all IFA’s charge you in the same way.
  • Not all advisors are competent which is why it is so important to use a trusted firm.