Different Types of Financial Planning

Anyone who wants financial security for their future may be interested in a range of financial planning services. These services tend to be offered by independent financial advisories (IFA’s) and include everything from mortgage broker services to pensions and retirement planning. In this article, we break down some of the main types of financial planning and explain them in more detail, without the jargon.

Savings

One of the first steps in giving yourself financial security is a savings fund dedicated to supporting you during emergencies. This savings fund is commonly known as a ‘rainy day fund’ in the financial industry and covers you in unforeseen circumstances such as job loss, major illness or injury, and car or home repairs. Experts usually recommend having enough money in this fund to cover three to six months of living expenses. Having this cash readily available is an excellent way to prepare for the unexpected and your first step on the ladder to having financial security.

An independent financial advisory like Suttons IFA can help you to navigate through this aspect of your financial planning, helping you to achieve your financial goals.

Pensions and retirement

Another important element of financial security is effective pension and retirement planning. Many of us, particularly when we are younger, are only really concerned about the present, meaning all too often pension and retirement planning are not at the forefront of your mind. However, if you want to enjoy your current lifestyle through your retirement without worrying about running out of money, there is no time like the present to start planning ahead.

An IFA can help identify what you want your retirement to look like, assess your current financial situation and outline a plan of action with recommendations on how you can get on track to meet your retirement goals.

Mortgage and equity release

No matter what stage you are on the home owning ladder, whether you are a first time buyer, experienced homeowner or property landlord, financial planning is an essential element that everyone will need to be aware of. Purchasing or remortgaging a property can be stressful due the number of factors that must be taken into consideration such as legal costs. A mortgage advisor can assist you with any queries or concerns and advise you on the best course of action.

Investments

Another excellent way to plan for the future is through investing. Investments are key to protecting the value of your savings against inflation and are an excellent way to deliver the returns you may wish to achieve. However, they can seem like a minefield, particularly if you are not very financially literate. This is where an independent financial advisor comes in to try and deliver the highest returns in line with your chosen risks and reward allowing you to have sensible investments in place that you feel comfortable with.

Illness and life insurance

Another way that you may want to plan for the future when it comes to finances is life insurance and critical illness cover. Having one of these policies in place can help to protect you, your loved ones, and your assets in the event of an injury, death, or health condition that means you can no longer work. Although it isn’t the nicest thing to think about, it is incredibly important if you want as much financial security as possible.

With the help of an IFA, you can get a policy that gives you the right level of cover, fitting your personal needs, at better rates.

Inheritance tax

Another type of financial planning is inheritance tax, this area is particularly difficult to navigate by yourself and the stakes are high. An independent financial advisor like Suttons can support you by helping you understand your options when it comes to arranging your estate, and ensuring that you pass on as much wealth as possible to your loved ones so that no more goes to the taxman than necessary.