Talk Money Week: How to find a financial planner who’s right for you

So far this Talk Money Week we’ve covered the importance of conversations around planning for retirement and getting your estate planning arrangements in order. For the topics, and any other conversations about money, including a financial planner in the discussion has the potential to lead to far better outcomes.

Not only do they have the knowledge and expertise to provide the right technical advice, but they can also add value as an impartial third-party to help guide sometimes challenging conversations. This is especially helpful for couples or families who might not be on quite the same page in certain areas.

Finding the right financial planner can be easier said than done. Here, we’re going to discuss how to find a financial planner and give some guidance on how to ensure the conversations you have with them are as productive as possible.

It’s a common misconception that all financial planners do is choose investments for you. In fact, in many cases financial planners don’t get involved in investment selection, instead enlisting specialist investment managers with this expertise.

For example, at Evelyn Partners, our financial planners will work with an investment manager if suitable for your circumstances. As well as separate financial planning and investment management services with our combined wealth management approach, we offer clients a dedicated investment manager in addition to their personal financial planner.

Here are some of the most important areas a financial planner can help with:

Setting goals and objectives

You might already have a reasonably clear idea of your financial objectives, or perhaps they’re a little foggy. Either way, a financial planner can discuss them with you, help narrow down the specifics and articulate them in a way that allows you to easily measure your progress.

They can also help you to align these goals with your investment attitude to risk, discussing the trade-offs between the likelihood of reaching your objectives, and the level of investment risk you’re prepared to take.

Financial strategy and tax planning

Of course, a financial planner will provide specific advice on how to structure your affairs tax-efficiently. This will include where to build up your assets, through the use of tax wrappers like pensions and ISAs, but also how best to withdraw them when the time comes.

Part of this will also be the types of investments you should consider for different areas of your portfolio. For example, you may want to have a higher risk portfolio for your retirement funds, but a more conservative one for shorter term goals. At Evelyn Partners, your financial planner creates the guidelines for these specifics, and then works directly with your investment manager to build a portfolio that matches.

It's important to remember that all investments carry risk and you may get back less than your contribute.

Cashflow modelling

Both your goals and your strategy could benefit from cashflow modelling. Here, your financial planner will create a forecast of your financial future, based on your current situation and the proposed strategy.

Not only can this help you to visualise what your plan looks like, it can help aid conversations around your objectives. Would you prefer to maximise your retirement income or retire a few years earlier on a lower one? Cashflow modelling can help you decide.

Estate planning

One of the key benefits to a relationship with a financial planner is continuity for your loved ones, even after you’re gone. They can help create a plan to pass on your assets in a way that is tax-efficient and in line with your wishes.

While a solicitor will help you create a Will, a financial planner can ensure your pension beneficiaries are set up correctly, provide advice on trusts to receive assets either before or after death, implement life insurance policies and help you structure your gifting plan to best manage inheritance tax.

There are many ways to find a list of financial planners to speak to, from online searches to word-of-mouth recommendations.  From there, you’ll want to narrow it down to a shortlist, and this search for a financial planner should start with a fundamental checklist.

1. Check they are authorised to provide personal financial advice and are regulated by the Financial Conduct Authority 
2. Research the company they work for, you want to deal with an organisation that will be around for the long-term
3.  Ensure they deal with people like you. The more experience they have in solving the same problems you have, the smoother the process is likely to be

Outside of these, it’s important that you develop a rapport with the financial planner you’re speaking with. You want to feel comfortable discussing financial and health information, which can often be very private.

The key to a valuable long-term relationship with your financial planner is very similar to the other important relationships in your life. That is, communication, which is fitting given it’s Talk Money Week.

Obviously, you’re going to need to disclose your financial information to your financial planner, but the right strategy needs far more than this. You need to be able to explain your goals and dreams for the future, your fears about where it could go wrong and be comfortable asking questions if you’re unsure or unsatisfied.

A good financial planner will lead the conversation to help ensure that they have all this relevant information in order to create a strategy that works for you.

Financial planning and investment management are the two fundamental pillars for a strong financial future. You need the right strategy in place, but you also need investments that align with that strategy.

That means both your financial planner and your investment manager need to be on the same page. To make the most of this team approach, at Evelyn Partners we offer a combined wealth management service.

Here, one of our investment managers works collaboratively with a financial planner to create a comprehensive strategy that’s tailored to you. Your financial planner will structure your assets, your investment manager builds your portfolio, and you have a direct relationship with both of them.

Taking this integrated approach ensures that your investment portfolio aligns with your attitude towards risk, is tax-efficient and complements your overall financial plan.

We can help you to find the right financial planner to guide you towards your long-term goals. To arrange a free initial consultation, book a complimentary consultation online or call 020 7189 2400.