What does financial planning mean to you? An activity for the rich? Taking out products like pensions? If so, it’s not surprising: in the past, product-led planning was the norm, but things have changed. Today, these outmoded ideas have been replaced by lifestyle financial planning, which is more holistic and available to everyone. In other words, it’s not about products, but about life goals, now and in the long-term. Here at Ascent Financial Planning, we can make sure your finances support your objectives, but first, let’s debunk a few of those financial planning myths.
Financial planning is for the wealthy
This may have been true in the past, but financial planners can now bring value and tailored guidance to people across a greater wealth range. However, much depends on your specific circumstances. To find out if you’re eligible get in touch with one of our experts who can assess your financial situation.
Myth: Financial planning is about investments or pensions
If the only time you’ve had contact with financial planning was when you took out a product like insurance, you’ve foregone some valuable benefits. At Ascent Financial Planning, we can help you see how your various financial elements, from income and savings, to tax allowances and retirement, all fit together and bring added advantages. When you consider that nearly 40% of UK adults (20.3 million people) don’t feel confident managing their money, a financial planner could be a game-changer.
Myth: Financial planning is about budgeting
The belief that financial planning concerns strict budgeting and not much more keeps people away from financial planners and their helpful advice. Financial planning can involve budgets, but as part of a long-term approach, with monetary objectives. Budgeting is a tool to help you achieve your aims as part of a broader holistic strategy.
Myth: Financial planning ignores short-term goals in favour of long-term planning
Financial planning is about building your long-term financial future, but that’s not all. In fact, it’s important that your arrangements take into account your current situation as part of your long-term plan. This can mean focusing on immediate needs and goals such as:
- Building an emergency savings fund
- Covering a significant and immediate expense, such as home repairs or a car purchase
- Saving for a wedding or vacation
- Paying off credit cards
Myth: financial planning is a one-off exercise
Think you can make your financial plan and forget it? Think again. As you grow older, your situation will change, perhaps in ways you don’t expect, so you need to adapt your plan as you go along. If you ignore it, your plan will become unfit-for-purpose. Instead, you need to build a relationship with our lifestyle financial planners who will ensure your long-term plan continues to work as intended.
If my blog has piqued your interest in lifestyle financial planning, speak to us here at Ascent Financial Planning, based in North Wales. We’re ready to help with our clear, personalised approach.
