By ADRIAN LOWCOCK 25/11/2010
This is financial planning week and I have taken the opportunity to interview Tim Stalkartt, Bestinvest’s Head of Financial Planning about our approach to financial planning.
Tim, what is financial planning?
Essentially, financial planning is having clarity on your financial goals and objectives and creating a plan to meet those objectives. A financial plan should be holistic in nature, that is every aspect of the person’s financial affairs are taken into consideration, and for most people that introduces conflict and the need for prioritisation.
So what are the benefits of financial planning?
Firstly, if you have a clearly defined goal you are far more likely to achieve it. Having a financial plan actually makes future financial decisions very much easier as decisions are taken with the background of how will this help me achieve my goals.
A good financial plan will also be an efficient financial plan. Our clients’ money works harder for them as the structure will ensure tax efficiency and where possible, available allowances are utilised.
The financial plan will also align investment risk and consequently, potential investment returns to our clients’ objectives.
What makes a good financial planner?
I believe a good financial planner acts as a coach, consultant and confidante and most importantly needs to care about the client and get real satisfaction from helping them to achieve their goals.
Financial planning is also a highly technical area and we require a very broad knowledge of pensions, investments, and tax efficient wrappers.
How does Bestinvest approach differ from most financial advisers?
Firstly, we focus on the lifestyle objectives when discussing goals and aspirations as opposed to merely financial objectives. We look at best practice from around the world often from the US where true financial planning has been established for longer.
We provide holistic advice on all aspects of our clients’ life.
Finally, and importantly, we are paid by our clients to provide impartial conflict free advice. This means that when working for the client, we have no incentive to recommend any product or solution over another. Our business is about long term relationships built on trust.
So how much does it cost?
We charge an initial fee for the financial plan based on investable assets and an ongoing fee to review the plan and ensure that clients are on track. For this clients get a bespoke plan and strategy for the rest of their lives which offers value for money.
We only take on clients where we feel we can add value over the medium to long term and where we feel we can work together well. If you wish to learn more about the financial planning service please call 020 7189 9999.