Teaching is one of those professions where people tend to be less worried about money and be more concerned with job satisfaction. This is a general rule, but one that experience has shown us to be true. Therefore, we thought it a good idea to take you through the process of financial planning. What should you expect if you sit down with a financial advisor?
Step One: Establish a relationship
Whether financial planning is about understanding your teachers’ pension or other investment opportunities, you need to trust the person with whom you are working. You should expect the financial advisor to talk you through the planning process. They will also explain to you the competencies and experience they bring to the conversation. If they don’t, you must ask. You need to feel safe and trust the options they are presenting to you.
A good financial planning advisor will also be willing to tell you that you do not need the services they offer. Check that the advisor is wholly independent and that they do not receive benefits from selling a specific product to you.
Step Two: Gathering your information
To make the best decisions for you, the advisor will want a 360-degree view of your finances and your hopes for your future. You will be asked about your personal and financial objectives, your needs, your priorities, and the limits on the discussions with the financial advisor. The gathering of this information could take time and could feel onerous, but it is the best route to the most relevant plan for you.
Step Three: Analysing your options
The financial planning professional should then ask for some time to seek out the best plan for you. If they are able to do this immediately, you may want to pause to consider if they are offering bespoke or general advice.
The expert should set a time with you when they will go through your options. They should present these in a way that helps you make an informed decision.
Step four: Guiding you to a decision
The recommendations offered to you are just that: recommendations. The choices you make should still be yours. You should ask yourself: are these within the scope of what I asked for when engaging the services of the financial advisor? Do these plans fulfil my needs and objectives? Are there different options, with different providers, as should be expected from an independent advisor?
It would be best if you were given the time to explore each of the options offered before forming your financial plan. The overall choices made should work together to make the best possible strategic plan for your money for you.
Financial planning should mean you have made choices that make the most of your money for now and for the future. This could be in a single area, such as your teachers’ pension, or it could be a more extensive investment portfolio. Whatever form it takes, the overall objective of financial planning is giving you security and offering you peace of mind.
The content in this article was correct on 9th February 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on the financial planning for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.