Back in the 1980s, it would be fair to say that financial advisers didn’t have the best reputation.
Advice in those days probably involved a sharp-suited man from Allied Dunbar or Eagle Star contracting you out of SERPS, selling you an endowment, and spending their generous commission on an Escort XR3i and a mobile phone you needed a rucksack to carry.
It’s taken decades for that image to change into the highly regulated, professional industry it is today.
As an accountant, your job is to help a client to get the most from their business. As financial planners, we’re here to support you by helping your clients to reach their life goals – whatever they may be.
Rather than a salesperson flogging your client some products and disappearing into the night, proper financial planning in the 2020s can be genuinely transformative. It can empower clients to make decisions about the sale of their business, their saving and investing strategy, and the way they derive income.
During periods of volatility, such as that caused by recent global affairs, financial planning becomes even more important.
If your experience of financial advice is more Gordon Gecko than Grey Parrot, read on to discover three valuable benefits of financial planning and how you and your clients can use them to your advantage.
1. Working with a financial planner can help you and your clients maintain your “financial health”
If you picture yourself as a “financial GP” that your clients come to when they have issues, a financial planner acts like a consultant or specialist to provide expert advice.
Once you’ve diagnosed the issue, we can provide the specific advice needed to ensure the correct treatment and maintain your clients’ financial health.
Your clients will likely have all kinds of questions regarding their retirement, investments, and savings that will benefit from expert advice.
One of the key benefits of financial planning is that it can boost a client’s wealth.
For example, a decade-long study by the International Longevity Centre has revealed that individuals who work with a financial planner are, on average, £47,000 better off than those who don’t.
And, if you think financial advice is all about commissions or percentage charges, that’s not how we work.
We don’t think it’s right that someone with £1,000,000 invested should pay 10 times as much as someone with £100,000 invested if they receive a broadly similar service. We also don’t think it’s right that the service your client receives should be determined by how much money they have.
Keep an eye out for next month’s update where you can see exactly how much our fixed-fee approach can save your clients.
2. A well-written financial plan incorporates practical solutions while keeping in mind the “bigger picture”
A financial plan helps your clients set long-term goals and develop the road map needed to reach them. This can involve a variety of approaches.
Protect your client’s family or business interests
If a client has any important debts, such as a mortgage or business loan, they will likely need to consider some sort of financial protection to ensure their loved ones are not left with debt if the worst happens.
Protection advice covers areas such as:
- Making sure financial protection is in place to limit the disruption caused by losing key staff members
- Shareholder agreements and protection
- Business protection, such as relevant life insurance or death in service
- Protection against injury or ill health.
Prepare for retirement and help loved ones with potential inheritance issues
One of the key proponents of a financial plan is ensuring a client has the necessary funds in place to enjoy their desired retirement.
We’ll establish a client’s goals – to sell their business or to retire early – and devise a plan to achieve them.
For example, we can help work out how much is “enough” to ensure they can live the life they want without the fear of running out of money. We can also maximise the tax efficiency of their savings, to tackle issues such as pension allowances and IHT.
3. Financial planning improves your and your client’s emotional wellbeing
Receiving professional financial advice not only helps your clients reap financial benefits but can also provide them and their loved ones with peace of mind.
A recent Royal London survey found that individuals who worked with a financial planner felt more confident about the future, less anxious about their household finances, and more financially secure and stable than those who did not.
Source: Royal London
What this research shows is that there are many intangible benefits of working with a financial planner, helping individuals to feel in control of their finances.
Get in touch
Working with a financial planner means your clients benefit from a holistic, joined-up service when it comes to their finances.
If you have clients who would benefit from a no-obligation chat, or you’d like to explore how working more closely with Grey Parrot could benefit you, please contact us by email at mail@grey-parrot.co.uk or call us at 02039 871782.
Please note
This article is no substitute for financial advice and should not be treated as such. To determine the best course of action for your individual circumstances, please contact us.