Having recently written about 10 ways great financial planning can put more money in your pocket we wanted to follow up with an even more important piece on the non-financial benefits of financial planning.
When most people think about financial planning, they think about pensions, ISAs, investment portfolios, and maybe even tax planning. But in truth, financial planning is all about people. That’s what makes our work so incredibly fulfilling.
Money only has the meaning we each attach to it. Many years of conversations with clients means that we understand that for some people it’s a source of security, while others see it as a means to an end or simply an enabler. For many, it’s a source of anxiety and worry, because either they don’t have enough, or they feel they have too much and are concerned about the burden they are leaving their loved ones.
Have you ever had to make a decision about something significant in your life without having the information to help you make an informed decision? It causes untold anxiety and typically results in procrastination when it comes to making a decision. This in turn means missing out on elements of life, despite there being nothing more precious than the time we have to live life the way we choose to.
This apprehension is especially pronounced when people make the transition into retirement. With their source of earned income turned off, the chance to save more in the future is gone.
Without an understanding of the options available to them with the financial resources they have, this can be a very worrying time for people.
The upshot is they tiptoe through retirement, too scared to spend their hard-earned savings, despite having saved their entire working lives for this stage of their lives.
Life Matters exists to help people with these concerns and to empower them to view their financial situation from a different, more informed perspective. In trying to categorise the non-financial benefits of financial planning, we realised they broadly fell into two key areas:
- The ability to make life-changing decisions from a much more informed position
- The peace of mind that comes from this and knowing you have a sounding board and partner to support you in making future decisions.
Ask yourself, what would you do differently now if you knew you were in the financial position to do so? What impact would this have on your life, whether it be precious time with loved ones, or the ability to make a career change that will be more fulfilling for you?
Below are some of the questions our clients have had, where we’ve been able to bring clarity, enabling them to make bold, often life-changing decisions.
- Do I need to work again if we want to have the option of travelling the world and ticking things off our bucket list for the first 15 years of our retirement?
- Can I afford to buy my dream car and maintain the comfortable lifestyle we enjoy?
- How much can we afford to gift our children sooner rather than later, so we can see them enjoy the benefit it brings them?
- Is it possible to change my career to something I’m passionate about that has a much smaller remuneration package?
- What lifestyle can we afford to enjoy based on the wealth we have accumulated?
- Do I need to keep working, or do I have enough to stop now and be able to get on with enjoying the next phase of my life?
- Are we able to fund our children or grandchildren through a private education?
- Are we able to buy our dream home when we retire?
- Can we buy a holiday home and continue to maintain the lifestyle we enjoy?
- What steps do I need to take to have the peace of mind that I’m leaving everything in good order for those I leave behind?
- How much do I need to sell my company for to have the lifestyle I would like in retirement?
Looking at feedback from our clients, we recognise that they value the clarity and peace of mind that answering their big questions brings them, even more than the extra pounds that go into their pocket each year.
A client recently told us that we “had empowered their financial future”.
If you’d like to find out how we can help you to make informed decisions about your financial future and the peace of mind this can bring, we’d be delighted to help. Contact us at firstname.lastname@example.org or call 01202 025481.