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What Does a Financial Planner Do?

By RWB Wealth22 January 2025

Managing your finances can feel overwhelming, especially when balancing everyday expenses, savings goals, and long-term plans. This is where a financial planner can step in to help. But what exactly does a financial planner do? And how can they assist you in achieving your financial goals? In this comprehensive guide, we’ll explore the role of a financial planner, the services they offer, and how they can help you make the most of your money.

What Does a Financial Planner Do?

What Is a Financial Planner?

A financial planner is a professional who helps individuals and families manage their money and plan for their financial future. They provide advice tailored to your specific circumstances, whether you're saving for a home, planning for retirement, or managing investments. Financial planners are trained to understand complex financial matters and break them down into actionable steps.

Their primary aim is to create a personalised financial plan that aligns with your goals, giving you clarity and confidence in your financial decisions.

What Does a Financial Planner Do?

Key Services Offered by Financial Planners

Here’s a closer look at the range of services a financial planner can provide:

Budgeting and Cash Flow Management
A financial planner helps you understand your income and expenses, ensuring that your spending aligns with your priorities. They can create a realistic budget that allows you to save effectively while covering your essential costs.

Retirement Planning
Whether you’re starting your career or nearing retirement, a planner can guide you in building a pension pot, maximising contributions, and estimating how much you’ll need to retire comfortably.

Investment Advice
Financial planners can help you grow your wealth by advising on investment opportunities that match your risk tolerance and goals. This could include stocks, bonds, or ISAs (Individual Savings Accounts).

Tax Planning
Taxation can be complex, but a financial planner can help you make use of allowances, such as tax-efficient savings accounts or inheritance tax planning, ensuring you keep more of your hard-earned money.

Estate Planning
If you’re thinking about how to pass wealth to your loved ones, a planner can help you navigate inheritance tax regulations and create a strategy to ensure your assets are distributed according to your wishes.

Insurance and Protection
A financial planner can recommend policies to protect you and your family, such as life insurance, income protection, or critical illness cover. This ensures financial security in unforeseen circumstances.

What Does a Financial Planner Do?

How Financial Planners Work with You

Financial planners typically follow a structured process to ensure their advice suits your needs:

Initial Consultation
The first meeting focuses on understanding your financial situation, goals, and concerns. This helps the planner assess how they can assist you and outline potential solutions.

Creating a Financial Plan
Based on the information gathered, the planner develops a personalised financial plan. This includes specific recommendations and strategies aiming to achieve your goals, whether it’s saving for a child’s education or paying off a mortgage.

Implementation
The planner assists in putting the plan into action. For example, they might help set up investments, purchase insurance policies, or open savings accounts.

Ongoing Support and Reviews
Financial planning isn’t a one-time event. Planners provide regular reviews to monitor if your plan stays on track, adapting to changes in your circumstances, such as a new job or unexpected expenses.

What Does a Financial Planner Do?

Why Should You Consider Using a Financial Planner?

Many people hesitate to seek professional financial advice, assuming it’s only for the wealthy. However, financial planners can benefit individuals at various income levels. Here’s why:

Expert Knowledge: Financial planners have specialised training and access to tools that allow them to provide accurate, up-to-date advice.

Objective Perspective: A planner offers a more balanced view of your finances, helping you make decisions without emotional interference.

Time-Saving: Handling financial matters can be time-consuming and complex. A planner simplifies the process, allowing you to focus on other priorities.

Achieving Goals Faster: With a clear plan and expert advice, you can work towards your financial goals more effectively and confidently.

What Does a Financial Planner Do?

How to Choose the Right Financial Planner

When selecting a financial planner, consider the following tips:

Check Qualifications: Look for planners with recognised credentials, such as Certified Financial Planner (CFP) or Chartered Financial Planner.

Understand Fees: Planners may charge hourly rates, flat fees, or a percentage of assets under management. Ensure you’re clear on costs upfront.

Ask About Specialisations: Some planners specialise in areas like retirement planning, investments, or tax advice. Choose one that aligns with your needs.

Look for Trust and Transparency: A good financial planner should communicate clearly, answer your questions, and make you feel comfortable.

What Does a Financial Planner Do?

Final Thoughts

A financial planner can be a valuable partner in helping you to achieve your financial goals, providing guidance, support, and expertise tailored to your needs. Whether you’re looking to save for a milestone, grow your wealth, or secure your family’s financial future, working with a planner can help you gain confidence and clarity in your financial decisions.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.

The levels and bases of taxation, and relief from taxation, can change at any time and are generally dependent on individual circumstances.

please note that SJP do not offer cash savings accounts.

FAQs

Do I need a financial planner if I’m not wealthy?

Yes, financial planners can help people of all income levels. They provide valuable guidance on budgeting, saving, and planning for your future, no matter your starting point.

How much does it cost to hire a financial planner?

Costs vary depending on the planner and the services provided. Fees may be hourly, flat, or a percentage of your assets. Always discuss fees upfront.

Can a financial planner help me get out of debt?

Yes, they can provide strategies to manage and reduce debt, helping you create a realistic repayment plan that fits your budget.

How often should I meet with my financial planner?

This depends on your needs. Many people start with an annual review, but more frequent check-ins may be necessary during major life changes.

What’s the difference between a financial planner and a financial adviser?

A financial planner offers comprehensive financial guidance, while a financial adviser typically focuses on investments and specific financial products.

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