Live your today and plan for tomorrow

Today is World Financial Planning Day, themed “Live Your Today and Plan for Tomorrow”. According to the Financial Planning Standards Board (FPSB), individuals with a financial plan enjoy a higher quality of life, greater satisfaction with their financial situation, and increased confidence*. What’s not to celebrate?

Five reasons to have a financial plan

At Davy, we view  a personalised financial plan as the the cornerstone for achieving your desired financial outcomes and overcoming potential challenges. Through the planning process, we’ll help you clarify your goals, determine the best ways to achieve them, and understand any necessary trade-offs.

Even if you already have a financial plan, consider updating it, especially if your circumstances have changed.

1. Create order in your financial future

Planning your finances can be overwhelming. While no one can predict the future, a financial plan allows you to focus on what you can control. By assessing your unique situation and translating your concerns into measurable goals, you’ll gain a clearer overall picture and can proactively address any gaps.

2. Make decisions tailored to you

Just as many aspects of our lives are unique, so are our financial needs and goals, which evolve over time. A one-size-fits-all approach is ineffective. A solid plan will guide you in making timely decisions that align with your specific objectives, providing a framework for our team of experts to handle the details for you. Your financial plan is just the beginning; as life changes and external factors arise, your adviser will help you adjust to stay on track.

3. Plan for the best

It’s well-known that the earlier you plan, the better your chances of reaching your goals. For instance, saving for retirement is most effective when utilising pensions, which offer significant tax benefits but are often underused or misunderstood. Your plan will clarify the pension amount you should aim for to meet your lifelong needs, including the best structure and consolidation of your resources. For those with excess wealth, succession planning will explore ways to transfer assets tax-efficiently to the next generation while considering control, education, and alignment with your values. Business owners should also consider structuring for future exit or family succession to optimise tax outcomes.

4. Prepare for the worst

Death is one of life’s certainties. Ensuring your dependents are financially secure after your passing can bring peace of mind. Your plan will address key issues such as your will and enduring power of attorney, which dictates how your wealth is managed if you lose capacity. It will also evaluate the right insurance coverage for you, whether it involves extending your coverage into retirement, safeguarding business interests, or specific life policies to address inheritance taxes.

5. Streamline the investment discussion

Your financial plan will align your investment strategy with your individual circumstances. For short-term goals, a low-risk, liquid portfolio may be appropriate, while for long-term objectives, growth-oriented assets can help you weather market fluctuations. Your risk tolerance and investor profile will be crucial components of your final investment strategy.

We have a team of experts and a comprehensive array of platforms to help implement your financial plan, covering pensions, taxes, structuring, succession, philanthropy, protection, and investments.

If you’re an existing Davy client, now might be a good time to contact your adviser to review what you already have in place. If you’re not yet a Davy client, consider requesting a call today to discuss creating your personalised financial plan.

*based on the 2023 FPSB Ireland Value of Financial Planning Research.