If you've never worked with a financial planner, it can be hard to know what you're signing up for. Good financial planning follows a clear process, and it starts with a conversation, not a product.
The six steps below are the process set out by the Financial Planning Standards Board, the body behind the CFP certification used around the world. Here is what happens at each stage, and what you should expect from your adviser.
1. Getting to know each other
Before anything else, you and your planner agree what the relationship covers: what they will do for you, how they are paid, and how decisions will be made. You should come away knowing exactly what you are getting and what it costs.
What to expect: a clear explanation of the service and fees, in writing, before any work starts.
2. Gathering information
Your planner builds a full picture of where you are now and where you want to be. That means the numbers, such as income, savings, pensions, property and debts, and also the things that matter to you, such as when you'd like to retire, family plans and how you feel about risk.
What to expect: plenty of questions. The more your planner understands, the better the plan.
3. Analysing your position
Your planner works out whether you are on track for what you want. This might include cash flow modelling, looking at how your pensions and investments are set up, checking your tax position and spotting gaps in protection.
What to expect: an honest view of where you stand, including anything that needs attention.
4. Recommendations
Based on the analysis, your planner puts forward what they think you should do and explains why. A good recommendation shows the options that were considered, the costs, and the risks, not just the preferred answer.
What to expect: recommendations in writing that you can take away, question and understand before you agree to anything.
5. Putting the plan in place
Once you're happy, your planner helps you act on it. That might mean setting up or moving pensions, arranging investments or protection, or working alongside your accountant or solicitor.
What to expect: a clear list of who is doing what, and when.
6. Reviewing and adjusting
A plan isn't a one-off. Tax rules change, markets move and so do your circumstances. Regular reviews check the plan is still on track and make changes when it isn't.
What to expect: an agreed review, usually once a year, and a planner who gets in touch when something changes that affects you.
Want to start with step one?
A first conversation is free and there's no obligation. We'll talk about where you are, what you want, and whether we can help.
Book a free consultationHow Rite Wealth works
Our financial planners in Glasgow follow this process with every client, whether you're a business owner, planning for retirement or thinking about what you'll leave behind. It starts with understanding you, and it carries on with regular reviews for as long as you want them.
This article is for information only. It is not financial advice or a personal recommendation, and it does not take account of your circumstances. Any recommendation would follow a full assessment.
The value of investments can fall as well as rise and you may get back less than you invested. Tax treatment depends on individual circumstances and may change in future.