What is a financial plan?

What is a financial plan?

What is a financial plan? How it will benefit you? Here we demystify what a financial plan is and how it can help you.

A financial plan is a detailed document that contains your current financial situation and long-term monetary goals. The plan will include the strategies to achieve those goals. It may be created by yourself or with the help of a chartered financial planner.

The plan should be comprehensive. It should be highly personalised to reflect your personal and family situation. Plus, risk tolerance and future expectations should be given consideration too.

Consider your priorities

Clearly defined goals and objectives are the core of a financial plan. They may include things such as:

  • retiring early
  • funding education for children
  • buying a larger home
  • starting a business
  • leaving a legacy

No one can tell you how to prioritise your goals. However, a chartered financial planner may be able to help you choose the right savings and investments plan that will help you tick them off, one by one.

Special considerations

Financial plans don’t follow a set template – they are totally unique to you and your circumstances. They can help you to decide whether you need to make changes in the short term, helping ensure you achieve your long-term and retirement goals.

A plan will contain the following elements:

  • Retirement planning – No matter what your priorities are, the plan should include a strategy for accumulating the retirement income you need.
  • Tax planning Higher rate tax-payers in the UK are missing out on £769 million each year in unclaimed pension tax relief alone” – PensionBee. Understanding the complexities of the UK tax system is difficult. A tax plan will ensure that you take advantage of all relevant reliefs and allowances you are entitled to. And, also ensure that you are not paying more tax than you need to.
  • Long-term investment planning: A customised plan based on specific investment objectives and your personal risk tolerance.
  • Estate planning – Arrangements for the benefit and protection of your heirs.

Revise your financial plan regularly

Regular assessment of your financial plan is important – updating and revising where necessary. And, this will help ensure you are on track to achieve your short and long-term objectives.

We are available to provide assistance with your financial plan. Contact us to learn more about how we can set you off on your successful financial journey.

Other interesting articles:

Can retiring early improve your health?

Protecting your family’s financial security for the future

Top tips for a happy retirement


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