On 20 February 1962, John Glenn became the first American to orbit the Earth aboard the Friendship 7 spacecraft.
His remarkable achievement was undoubtedly a testament to human progress, but it was far from easy.
Indeed, Glenn faced several challenges during his mission that affected his safety. For instance, Mission Control detected a sensor warning indicating that the spacecraft’s heat shield might not be secure.
This would have led to a catastrophic failure upon re-entry. The team on the ground instructed Glenn to perform a series of tests and decided to deviate from standard procedures.
To make matters worse, the automatic control system failed during Glenn’s first orbit, forcing him to manually pilot the spacecraft for the remainder of the mission.
Despite these obstacles, Glenn successfully completed three orbits and returned safely to terra firma.
While Glenn’s skill was crucial in the success of the mission, the efforts of his ground support team can’t be understated.
Their guidance and expertise enabled Glenn to navigate the challenges of space travel and safely achieve his historic mission.
Similarly, having a trusted financial planner in your corner can be equally invaluable. Managing your wealth involves numerous variables that can be difficult to navigate alone.
As such, your planner can act as your very own “Mission Control”, helping you to address challenges and adapt to changing circumstances.
Continue reading to discover why having the support of a financial planner is so valuable in helping you achieve your goals.
Planners take a holistic view of your wealth
In recent years, there’s been a shift away from planners and advisers simply managing money towards delivering value and helping you achieve your financial goals.
To do so, a planner will take a holistic view of your entire financial situation, considering more than just your investments and pensions. Indeed, they’ll typically work with you to understand your:
- Aspirations
- Concerns
- Long-term objectives
Then, they can use this information to craft a comprehensive plan tailored to your unique needs with your goals at the centre.
They won’t stop there, either, as financial planning is an ongoing process. Your planner will regularly review and adapt your plan to ensure it remains aligned with your evolving circumstances.
Read on to discover some of the key areas where a planner’s support can make a significant difference.
Pensions and investments
Your retirement savings play a vital role in helping you secure your financial future. As such, your planner will assess your existing pensions to ensure you’re on track to achieve your desired lifestyle in the next phase of your life.
They can also help you identify opportunities to boost your savings, such as making additional contributions or consolidating your funds to reduce fees.
When it comes to your investments, a planner will usually evaluate your tolerance for risk and build a portfolio that is aligned with your objectives.
They’ll even monitor your investments over time and make adjustments as needed to ensure your portfolio continues to perform as expected.
Note that a pension is a long-term investment not normally accessible until 55 (57 from April 2028). Investments carry risk. 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.
Financial protection
It’s also vital to protect your financial wellbeing, especially since life can take an unexpected turn at any point.
For instance, if you were unable to work due to an illness or accident, how would you and your loved ones cope? Similarly, would your family be able to maintain their standard of living if you passed away unexpectedly?
A financial planner could help you assess your needs and recommend the appropriate levels of protection, such as:
- Critical illness cover
- Income protection
- Life cover
These can ensure you and your loved ones are financially secure in the face of unforeseen challenges.
Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Estate planning
Estate planning is another essential area where a planner’s expertise can come in handy.
They could help you structure your estate to minimise Inheritance Tax and ensure your wealth is distributed according to your wishes. A planner could also help you create a clear and comprehensive will to reduce the chances of disputes after you’re gone.
Moreover, a financial planner can assist you with setting up a Lasting Power of Attorney (LPA). This ensures that a trusted individual can make decisions on your behalf if you lose the capacity to do so.
Note that the Financial Conduct Authority does not regulate estate planning, tax planning and Lasting Powers of Attorney.
A planner can boost your happiness and reduce financial anxiety
As you can see, managing your wealth involves many moving parts, which can sometimes be overwhelming. This is why a financial planner’s support is so helpful.
Beyond the tangible benefits of their assistance, working with a planner also brings several considerable emotional advantages.
Indeed, a planner can provide clarity and confidence about your financial situation, helping you to feel secure and prepared for the unexpected.
This sense of security allows you to enjoy life without constantly worrying about running out of money or ending up with a shortfall in retirement.
Just as John Glenn relied on his ground support team to navigate the complexities of space travel, you could see incredible benefits from having a trusted financial planner in your corner.
With their guidance, you could more confidently manage your wealth, overcome challenges, and achieve your financial goals.
If you’d like Investment Sense to act as your “Mission Control”, please contact us by email at info@investmentsense.co.uk or call 0115 933 8433.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
