What Is Financial Planning?

Published on: September 30, 2020

Monday kicks off Financial Planning week!

We’re excited; it’s a chance to really spread the word on the importance of Financial Planning and help more people understand what it takes to get their finances living up to their dreams. 

As a Chartered Financial Planner, I feel I’m pretty well-qualified to answer the question, “What is Financial Planning?”

Financial Planning is a broad term which loosely means: getting your finances into such an order where they support your objectives.

By ‘objectives’, I don’t mean financial objectives such as earn 5% per annum or maximise my pension contributions. Instead, I mean the things you really want to achieve, or do, or avoid. So perhaps, have a retirement full of holidays (not this year, obviously), or making sure we can always afford for our kids enjoy all their hobbies and field trips.

Financial Planning is then the process of taking these objectives and unpicking the financial requirements of each and comparing them to what you have in place.  Then, plans can be made to plug gaps/provide financial ‘safety nets’ or save and grow assets accordingly.

Some of the more common financial planning objectives also include:

Making sure your kids can inherit as much of your estate as possible without having to pay tax

Get more money out of your business and into your own pocket

Ensuring the family can still function if one parent becomes seriously ill or passes away

We take the objective, understand it, and then create your Financial Plan.  Then, if you want us to, we will monitor it over time and help tweak it along the way.

That’s Financial Planning!

We usually hold an annual event for our clients where we get together to catch up, have a lovely meal and listen to some interesting speakers from the financial world talk about their passions and what’s been happening in their specialist areas.  We’re going virtual for the event this year for the very first time, which presents an exciting opportunity:  to make some new friends! 

Please join us for the Three Counties annual get-together on 22 October at 10am.  We can’t quite stretch to full-blown catering for all of you but we would love to send out a little treat beforehand if you’d like us to!  Please RSVP on admin@three-counties.co.uk or call 0191 230 3034.

Want to know more?