Transcript:
What’s the difference between a financial advisor, a wealth manager and a financial planner? And which one is right for you? Hello everyone, my name is Martin Strutt, and in this short video, I’ll explain why sometimes, whatever the adviser is called, it’s most important for you to make sure that they adopt a proper financial planning approach. I’m the founder of Collingbourne Wealth Management in Winchester, which has always been an independent financial advisor firm since we started in 2006. Wealth management, however, is not a regulated term. So if that’s what a firm calls itself, as we do, it’s how they want to present to the world. But it can mean different things to different people. So where does financial planning fit into this picture? For us, wealth management has always been about evidence-based money management plus advanced financial planning harnessed together.
If you want to buy an investment product or get advice on a specific issue like a mortgage or a pension, or if you just want someone to manage your money, there are thousands of advisors and scores of institutions that would be delighted to oblige. But all too often, we come across people who’ve accumulated a seemingly random collection of all kinds of investments with no sign of an overall strategy. Financial planning is a process that puts everything into the context of your unique set of circumstances, so that everything’s efficiently working towards helping you achieve your goals. To illustrate this, I’ll use the analogy of a car. On the one hand, your pension fund, your own business, if you have one, your investments, property and savings are the engine that could, if harnessed properly, move you towards your financial goals.
Of course, an engine like money provides the power to move you forward, but it needs to be harnessed and directed by the vehicle around it. The rest of the car, on the other hand, your personal financial plan is the car that the engine propels forward. The shape of that car and the shape of your financial plan should be designed on the unique journey of that you intend to take through life and the different roads you expect to travel. Hopefully stress-free and in comfort, sometimes with excitement and of course with security for you and those that you love. At the risk of stretching the analogy, it can indicate the kind of engine that is investment strategy that gives you the best chance of arriving safely at your destination. Even a powerful engine in the wrong car can cause trouble.
So take a step back and take time with a financial planner to explore how your money can most effectively be harnessed towards your goals, such as financial independence, financial security, protecting and improving your lifestyle and personal freedom. Discussing the issues, options and implications of your financial alternatives with a qualified financial planner is the foundation of your successful financial plan. Financial planning is a clearly defined process that should come before a decision about what investment products to buy, and it should be reviewed as your life develops and the world changes around us. Well, at this time of year, the Chartered Institute for Securities and Investments, the CISI, promotes Financial Planning Week in the UK to raise public awareness about the importance and benefits of professional financial planning and to help people improve their relationship with and understanding of their money and finances.
Search CISI Wayfinder to start your journey or visit Collingbourne.com for more information. Thank you for watching.