It is no secret that a well-designed financial plan is the key to achieving long-term financial success. In an increasingly complex world, rife with tax peculiarities and investment products, the landscape can be confusing. This is particularly true for expats with an international outlook.
A fundamental issue
Let’s start by looking at the basics. Just how well-informed is the average Briton when it comes to financial planning? Not very, if we read around the subject. Figures published by the World Bank suggest that 33% of the UK’s population is “financially illiterate”. This figure doubles when we look at the global picture. This is a quite shocking state of affairs.
The picture gets worse when we look at education. In fact, research by Ipsos Mori (published by the Financial Times) concluded that 90% of people in England attested to having learnt either “nothing at all” or “not very much” about personal finance during their school education.
What is financial planning?
You know the old saying, “prior planning prevents poor performance”. If you aspire to a comfortable lifestyle on a less than extraordinary salary, you will need a financial plan. Equally, if you are more fortunate and aspire to retire early or leave generational wealth for your family, you will also need a prudent plan.
Financial planning exists for you to make the most of your assets whilst ensuring that you meet your lifestyle and legacy goals. It considers your savings, tax, investments, insurance, retirement and estate planning position and endeavours to knit them all together into one tapestry.
Do you need a financial planner?
Financial challenges are all around us. Preparation to face any scenario is key – so that you are ready for whatever life may throw at you. When it comes to the sensitive topic of financial management, the consequences of mistakes can be dire in certain circumstances. It’s therefore usually advisable to recruit a financial planner that you can trust with your affairs.
What does the financial planning process look like?
The financial planning process is not an exact science, and much will depend on the adviser you select to work with. I’ve outlined the primary steps below:
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Selecting the right financial planner
Selecting the right financial adviser is crucial to achieving the desired result. Ensure your professional is suitably qualified and experienced in dealing with cases similar to your own. Ask about their credentials, and challenge them if you are not convinced or do not understand. Be aware that many financial advisers outside the UK operate without the suitable levels of qualification. Not all advisers are created equal.
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The initial review
With your professional selected, the first step will be an initial review of your circumstances. This review will examine all areas of your personal financial life – the objective being to establish a baseline and begin shaping the foundations of a wealth management strategy. Without this information, your adviser will not be able to provide you with suitable advice – so it is important to be candid and open.
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Creating the financial plan
The financial adviser will now proceed to draw up a financial plan. This will address all major aspects of your financial life, although it may be implemented in iterations based on the most pressing and urgent matters that require attention.This may involve recommendations for certain financial products, such as insurance policies or investment vehicles.
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Reviewing the financial plan
After the initial implementation, it is important to keep the plan up to date. Just as you are a living, breathing, maturing human being, your financial plan must evolve with you. In today’s fast-paced world, your objectives and circumstances may change dramatically in a short period of time. Your financial plan must adapt accordingly, and it is your adviser’s job to ensure this happens in a timely manner. In addition, many people mistakenly believe that they should not review their investment strategy over time – preferring to leave their assets where they are. This can be a costly mistake.
Build your financial plan with Jonathan Ralph
As a fully qualified UK financial adviser, regulated in the EU, I understand the challenges that come with an expatriate lifestyle. I’m also supported by one of the most experienced and highly rated teams in the industry. We have cutting edge technology, exclusive partnerships with the best professionals in our industry, and exclusive terms with Europe’s leading fund management houses. In short, we are excellent in everything that we do here – our multiple awards and “Excellent” Trustpilot rating are proof of this. Why not see how we can help you?
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