Financial Adviser or Financial Life Planner?

Do you need a financial adviser or a financial life planner? That’s a good question. I believe you need both, and here’s why…

A financial adviser is a qualified professional, with the skills and expertise to help you manage your finances.

A good adviser will keep track of how your investments are performing – ensuring that they remain within your chosen risk profile. They should be making recommendations to you about what should be moved, how you should invest and so on.

Your adviser should be helping you to make the most of your tax allowances too.

For example, we don’t recommend clients put all of their money into pensions. By spreading money across ISAs, bonds and general investments as well as pensions, it is possible to achieve a tax free income of around £40-£43,000 per year. As a couple, clients could be receiving £86,000 per year, which is a very good income.

But having the money is only part of the equation, and that’s where a financial life planner comes in…

I work with clients to help them frame what they want their life to look like, both now and in the future.

I have talked before about clients who have focused entirely on their retirement. They work incredibly hard all of their lives, sometimes denying themselves pleasures to save as much money as they can and build their pension pot. And then something happens – ill health prevents plans happening, an unexpected event occurs and suddenly, retirement looks very different.

So, I want all of my clients to enjoy their best life right now.

That doesn’t mean splurging recklessly and having nothing left for the years ahead, but it does mean not going without now. If you want to take some short-term pain for longer term gain, that’s fine, but do it with clarity and a plan.  

I have also shared stories about clients who fall apart when they retire. They have gone from a high-flying executive to having nothing to give them structure. It’s one of the reasons why I am a huge fan of creating a retirement diary, so you can get a picture of what life might look like post retirement.

I like clients to do that diary ahead of retirement, so they can think about it in more detail. Playing golf seven days is not sustainable! And being with your partner 24 hours per day, 365 days per year is not going to work either. You need your own hobbies and interests. As well as looking after yourself physically, and keeping active, you also need to keep your brain active. So think about what that might look like for you – volunteering, consultancy work, a part time job – anything that sparks your interest.

I love it when clients create mood boards with their wish list. The holidays they would love to take, the car they want to own, all of their “one days”.

As a financial life planner, it is my job to help my clients achieve their one days. That might mean doing cashflow modelling to show them what they can do right now, when they might be able to retire or slow down in their working life. That might mean being able to afford to educate children privately or buying a second home. What that looks like is personal to you but being able to achieve goals ahead of when you thought, is hugely exhilarating.

My true purpose is to help my clients achieve the very best quality of life possible.

Yes, of course, the finances are a key part of that – and I achieve that through Copthorne Financial Services – but knowing what is possible is a tremendous motivator.

Of course, there are professionals who can deliver financial advice and do financial life planning. Now, I wonder where you can find one of those…

If you would like to talk about life planning and financial advice in more detail, please give me a call on 01344 875 310.

Start getting a return on your life…

First steps: Take your free Return on Life Index assessment

financial adviser or financial life planner?
Start getting a return on your life…

First steps: Take your free Return on Life Index assessment