Financial goals and individual needs change over time, as life goes on we all face new financial challenges and our priorities will change. With this in mind it is important to periodically review our financial situation. But what exactly is a Financial Review and how do you get one?
A financial review, in the context of a financial planning and advice, is used to describe the process of a practitioner assessing an individualb s current financial circumstances, needs and provision.
Identify Your Priorities
This is generally in order for him/her to identify if the current arrangements are still relevant to those clients. In addition, any gaps that may exist in terms of savings, investments, pensions, insurance, financing, and overall tax planning can be identified.
The financial review would normally start off with an informal process that Qualified Financial Planners often refer to as Fact Finding. This is generally best carried out face to face with a client.
Through asking a series of open and closed questions, and by having a discussion around the key issues and concerns of the individual, an adviser will narrow down which areas are of key significance to the individual. In addition, the practitioner might point out areas that the individual has perhaps not considered, or thought about, that could be relevant to them.
Different Objectives for Different People
Obviously all peopleb s circumstances are different. Some examples are below:
– You might have several different pension pots from various employers, or you could be in an employer final salary scheme (the later quite unlikely these days!). You might want to assess what these will provide you with income wide in retirement. You may need to be saving more than you are (often the case!), but you would not know this unless you reviewed the policies.
– Or you may have life insurance or critical illness that you took out to protect yourself and your family in relation to a mortgage. That mortgage may have increased as you moved home. You may not have assessed if the cover is relevant for some time, or inflation has meant that it no longer has the same value that it once did.
– You might have various ISAs and savings plans spread across several different providers. All of this could be quite cumbersome to assess and to manage (several different providers, different policies and plans). You may want to move all of these on to one low cost platform.
Meeting Your Financial Goals
As well as assisting assess scenarios such as the ones mentioned, a financial review if carried out fully, should help to establish what should be in place to ensure all the financial objective and aims of the individual can be met.
Contact us at Quantum Advisers for a chat about YOUR Financial Review.