5 powerful ways a financial planner could help you feel relaxed about your money

Happy couple relaxing on sofaAccording to HR Grapevine, research reveals that the UK lost a staggering £28 billion to workplace stress and burnout in 2022. It’s a sobering statistic, and one that perhaps highlights the importance of Stress Awareness Month, which takes place during April 2023.

The event brings together care professionals and health experts to increase awareness about the causes of and cures for stress. With the uncertain economic climate and rising cost of living in 2022, it’s not surprising that the Mental Health Foundation revealed in November of that year that 34% of Britons felt anxious about their personal finances.

That said, feeling stressed about money is not necessarily a question of wealth, a study by Aegon shows. Its Financial Wellbeing Index reveals that a third of top earners still worry about their finances. Furthermore, 55% of average earners also worry about money.

If you’re one of those who worries about your finances there is good news, as working with a financial planner can reduce your feeling of anxiety and stress. Read on to discover five ways they could help you enjoy financial peace of mind.

1. Help you create a financial strategy

According to Aegon’s research, people who create a financial plan tend to do better with their money. This is something a financial planner can help you create so that you and the planner can understand what your goals are and how best to achieve them.

This could provide you with peace of mind that you’re financially secure and on track to enjoy the lifestyle you want both today and down the line.

2. Ensure you’re on track to meet your goals

A financial planner will also monitor your financial strategy to ensure it’s on track for you to achieve your financial and life goals. If it’s not, a planner can help you understand the possible alternatives so that you can potentially get your financial strategy to where it needs to be to enjoy the life and financial security you want.

Furthermore, a financial planner could help provide options to keep your financial strategy on track when life events happen, whether planned or not. Whether the unexpected event is a new job, divorce or marriage, working with a planner could ensure you have the confidence to make decisions about your money that you will thank yourself for down the line.

3. Expose your investments to the right level of risk

Investing always carries risks as it has the potential to expose your money to losses. Small surprise then, that investing can cause financial stress and worry.

Working with a financial planner can help with this, as they can help explain the level of risk your investments are exposed to. This means that your money is exposed to the greatest level of potential growth while maintaining a level of risk that you’re comfortable with – helping to ensure there’s no sleep loss over your investments.

Furthermore, a planner can act as a sounding board when the markets take a downturn, helping you to avoid a decision you might regret. When the stock market becomes volatile, it can be tempting to sell your investments in a bid to reduce the potential for losses, yet this might turn a paper loss into an actual one.

To demonstrate this, consider the following illustration of the FTSE 100 between 1 March 2013 and 1 March 2023. The index tracks the performance of the top 100 companies registered on the London Stock Exchange.

Source: London Stock Exchange

As you can see, during the period shown there were some significant downturns. If you sold your investments when the index took a downturn, your money could have missed out on recovery and growth potential when it later bounced back.

That said, always remember that past performance is no guarantee of future performance and of course most of our clients will be investing in many different asset classes, not just the FTSE 100.

4. Help you look forward to the retirement you want

Part of your long-term strategy is likely to include your retirement plans. As retirement planning is a complicated business, working with a financial planner provides you with the assurance that you’re on track to enjoy the lifestyle you would want when you finish work.

If your pensions are not on track to achieve this, a planner could help you understand how to potentially boost your pension so that you can live the retirement of your dreams. This could include maximising the tax efficiency of your pensions, which could help increase their long-term value.

They will also be able to explain the myriad complex rules around your pensions, allowing you to rest easy that your financial future is in safe hands.

5. Allow you to consider various “what ifs”

Financial decisions should be based on carefully considered calculations and not a hunch. This is something a financial planner can help you achieve through “cashflow modelling”.

This is sophisticated software that allows financial planners to input your income and outgoings, assets and liabilities, as well as your goals and current needs. This is then used to forecast your financial future and allow you to investigate different “what if” scenarios, potential decisions and how they might affect your financial security.

This could help provide the clarity and confidence you need to feel relaxed about your money both now and in the future, so that you can enjoy financial peace of mind.

Get in touch

If you would like to discuss how you could enjoy greater peace of mind working with a financial planner, please contact us on info@janesmithfinancial.com or call 01234 713131.

Please note

This blog is for general information only and does not constitute advice. It should not be seen as a substitute for financial advice as everyone’s situation is different.

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. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits.

The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation, which are subject to change in the future.

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.

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