The Five Benefits of Lifestyle Financial Planning

The comment I receive the most from clients after discussing and presenting their financial plan is, ‘we wish we’d done this sooner’. With this in mind, I thought I would share some of the benefits of lifestyle financial planning.

What is Lifestyle Financial Planning?

Lifestyle financial planning aims to help clients identify, achieve and then maintain their desired lifestyle without fear of running out of money. In the process it focuses on the big questions such as:

· Do we have enough money to be financially independent?

· Do we have enough money to maintain our lifestyle now and in the future?

· Do we have enough money to help others – our family, our friends and the causes we support?

· How much investment risk do we need to take?

· How much do I need to sell my business for to achieve my goals?

We use sophisticated planning software to help answer these questions and to design and develop a financial planning strategy which is then regularly monitored and reviewed.

What are the Five Benefits of Lifestyle Financial Planning?

There are various studies (including by Vanguard and the International Longevity Centre UK) that have looked at the financial benefits of financial planning and all agree that people with a financial plan tend to save more and take a more disciplined approach to investment.

In addition to this, I believe that lifestyle financial planning offers the following five benefits:

1. It puts the client first

It’s not just about investments or financial products. In our ‘Discovery’ meetings clients feel that they have been listened to and understood and it’s probably the first time that they have been able to truly articulate their lifestyle goals. This is often when clients experience the ‘light bulb’ moment!

2. It provides clarity

This may be the first time a client has taken stock of where they currently are financially. This can be particularly important following a life event such as divorce, bereavement or planning for retirement.

3. It offers empowerment

Clients feel that they are in control and have a clear strategy towards achieving their lifestyle goals.

4. It provides reassurance and peace of mind

Clients know that they have a trusted adviser helping them on their financial planning journey and ensuring that they stay on track. This means a client doesn’t have to worry about complex pension rules or changes to tax legislation – we take that stress away.

5. Financial freedom

Our financial planning software can map out different scenarios giving clients the freedom to choose the lifestyle they want to lead.

It might sound a cliché but life is not a rehearsal and having a financial plan in place is a step towards a client being able to live their desired lifestyle.