The value of financial planning: 5 ways it could help you achieve your long-term goals

It seems as though more and more people are starting to realise just how helpful it is to have a financial planner in their corner. 

Recent research from Royal London reinforces this, as it reveals that 74% of consumers who pay for advice report their satisfaction levels as ranging from “good” to “very satisfied”. 

Moreover, the number of clients who believe the advice they receive is “excellent” or “good” value for money has risen from 54% in 2023 to 66% in 2024. 

Having a comprehensive “blueprint” to follow can provide clarity about your aspirations and help you focus on what matters most to you. 

Working with a planner makes this even more valuable, as they tailor their expertise to your unique circumstances. 

With this in mind, continue reading to discover the value of financial planning, and five ways it could help you achieve your long-term goals.

1. Your financial plan is centred around your goals

A truly comprehensive financial plan starts with your goals. Indeed, your planner’s first step will typically be to understand what you want to achieve and how your assets need to evolve to make this a reality. 

Vague aspirations like “growing my savings” can make it challenging to determine your progress and work out whether you’re on track. 

A financial planner can guide you in setting clear and actionable goals. For instance, if your main aim is to enjoy a comfortable retirement, they could help you figure out the income you’ll need to maintain your desired lifestyle. 

From there, they could show you how to grow your assets to meet this target. So, instead of a vague goal like “having enough for retirement”, it becomes more concrete, such as “I want to retire by the age of 60 with a pension fund of at least £1 million”. 

Moreover, financial planners are highly skilled at identifying any gaps in your financial plan that might arise from life changes, such as getting married, moving house, or changing jobs.

These changes can significantly affect your finances and often go unnoticed. For instance, you might not realise that your new job doesn’t include a death in service benefit, leaving your loved ones without adequate cover. 

Since a planner can spot and address these gaps by reviewing your situation holistically, they ensure that your plan is both comprehensive and aligned with your circumstances, even if these or your goals change over time.

By setting these clear targets and placing them at the centre of your financial plan, you might find you’re better positioned to grow the value of your assets and remain motivated to stay the course.

2. You could identify the necessary steps to achieve the outcome you desire

Once you’ve established clear goals, it’s worth breaking down the steps needed to achieve them. 

For example, if you wish to build a nest egg for your child, you might wonder: 

  • How much do I need to save each month? 
  • Should I use a Junior ISA or a savings account? 
  • Should I invest the money or keep it in cash? 
  • What can I do to ensure my child uses the funds wisely? 

A financial planner can help answer these questions, tailoring their advice to your specific circumstances. There is no “one size fits all” solution, after all. 

If your timeline for building the nest egg spans a decade or more, investing might be the better option due to its growth potential over the long term. 

Conversely, if you’re planning to give the money to your child within two years to support their higher education, cash savings could be the wiser option. 

Since your planner will take the time to understand your unique situation, they can help you choose the “right” option for you. This could make you feel more secure and potentially help you reach your targets sooner.

3. A planner could help you navigate tax challenges and make the most of allowances

Tax planning is often one of the more complicated aspects of managing your finances. From understanding Income Tax bands to navigating pitfalls such as the 60% tax trap, tax rules can be difficult to understand. 

Read more: Could you fall victim to the 60% tax trap? 

This is where a financial planner’s expertise becomes invaluable. 

They could help you identify opportunities to use tax allowances and reliefs to your advantage. For instance, your planner could ensure you’re making sufficient contributions to tax-efficient accounts, such as your ISA and pension, or guide you through strategies to mitigate Inheritance Tax.

Staying current with changes to financial legislation is also vital. For example, in a previous article, we covered the new changes to pensions and Inheritance Tax announced in the 2024 Autumn Budget, which will entirely change the way you need to manage your estate plan. 

By working closely with a planner, you can ensure that your financial plan accounts for these changes. 

Their guidance can also reduce the risk of unexpected tax liabilities and highlight new opportunities that may be suitable for your situation. 

4. They could temper your worst emotional reactions

Everyone reacts to things in different ways, though the way you respond to news or challenges could significantly affect your progress towards your long-term goals. 

This is especially true if your financial plan includes investing, as market volatility could provoke reactions that aren’t necessarily in your best interests. 

For instance, during market downturn, you may feel tempted to sell your investments to cut your losses. 

Though, this could mean turning paper losses into real ones and missing out on the potential recovery of the markets. 

Similarly, reacting impulsively to global events for fear of how they could affect your portfolio might hinder your ability to achieve returns necessary to support your desired lifestyle later down the line. 

A financial planner can support you with this, helping you to identify behaviours that might harm your financial progress. 

This reassurance and outside perspective can give you the confidence to stick to your plan, even during uncertain times. 

5. Working with a planner could also improve your emotional wellbeing

When you first think of financial planning, it’s understandable that wealth accumulation is likely one of the first benefits that comes to mind. 

However, the advantages of planning extend beyond simply the financial, as working with a planner also improves your emotional wellbeing by giving you greater confidence and peace of mind about the future. 

Indeed, an effective planner can help you live the life you want while feeling secure in your decisions. They could show you how you can afford to gift money to your loved ones now, upscale your property, or even change careers, all while maintaining your desired lifestyle.

Their bespoke advice could even empower you to make decisions you hadn’t previously considered possible, leaving you feeling more emotionally sound.

As you navigate life, having this level of confidence and clarity can make an incredible difference to your overall wellbeing. 

Get in touch

We can offer some much-needed support in achieving your long-term goals, all while providing you with the clarity and confidence needed to remain focused on your plan.

To find out how we can help you, please use our search function to find your nearest Verso office, email us at contact@versowm.com, or call 020 7380 3300.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.  

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.