A week in the life of a financial adviser

When you come to see us as your financial adviser, you’re naturally just seeing a snapshot of what we do. But have you ever wondered what a typical week for us might look like?

Well, ordinarily we wouldn’t think it worth mentioning (we’re not that interesting!) but at the moment, we’re carrying out a lot of annual reviews, which is a reminder of how many different events we deal with, and how everyone is on a different stage of their financial journey.

So we thought we’d sum them up here to give you a flavour of what other clients are experiencing, and to give an example of the kinds of things that affect an annual review. (Names have been changed!).

But first, what is an annual review?

The goal of an annual review is to ensure that your financial plan remains aligned with your objectives, risk tolerance, and changing circumstances.

A financial plan is never static, it’s a living breathing thing, which means that it needs to be updated regularly to make sure it’s meeting your needs. There may even be changes from the government in terms of legislation that affects you.

By making any necessary adjustments, we can help you stay on track towards achieving your long-term financial goals and support you in navigating life's financial complexities with confidence.

Here are just a few of the reviews we’ve completed so far in February:

Monday
At the start of the week, we saw Sarah, who recently made the final payment on her mortgage. This is an important milestone that’s always hotly anticipated, so Sarah was excited about what it would mean for her. We’d already built this event into her financial plan, but now that it was here, it was time to discuss the details of what she could do next. Could she use the additional capital every month to increase her pension payments? Or should she set aside some money in a separate investment account? These were big ideas for Sarah to contemplate and we were able to give her space and time to consider her options.

Tuesday
Brian, on the other hand, is just about to retire. This is another event that all our clients are working towards. The most important aspect here, from a financial planning perspective, is making that transition from saving money to ensuring you have regular and sustainable income.

Much of Brian’s savings are tied up in workplace pensions, so restructuring for this transition hasn’t been possible so far. This year’s annual review discussed how we put this transition into place, enabling him to draw down as and when he needs it in the years ahead.

Wednesday
Diane has a new partner and they’re planning to move in together soon. Among other considerations, this significant life event will involve selling one or both of their own homes. Diane’s divorce has recently gone through, and her ex-husband will be due to receive some of the capital when they sell their home.

So her review looked closely at the next steps. Diane and her new partner will be looking at joint long-term planning and with only one household to run, there will be increased income. At the same time, Diane’s partner is self-employed, so there are additional issues to look at there.

Thursday

The government scrapping the Lifetime Allowance (LTA) on pension contributions is good news for Simon, a client with us for the last 12 years. The previous limit of how much you can pay in before being liable for tax (set at just over £1 million) meant he’d stopped paying in. The changes from this April mean he can restart contributions. With two years left until retirement, that could make a significant difference to his financial pension pot.

In his annual review, we discussed how renewing payments will impact his monthly income profile and cashflow projections. A potentially larger final pot opens up new possibilities, for example he could retire earlier, or consider new ventures when he stops working.

Friday
Even if nothing’s changed, there’s still value in the annual review. Even now, when the economy appears so gloomy, we can reassure clients that, in the long term at least, things remain on track. This was the case for Jane. Given negative headlines, recession warnings and rising interest rates over the last year, she was surprised when we showed her that her portfolio had performed way better than expected. As for her plan, we can keep things as they are – but will check in at the next review in a year’s time.

Expecting the unexpected

It’s quite often the case we don’t need to make any changes. Other times – even when we’re considering major life events – the likely result is small adjustments, rather than wholesale upheaval.

Although it’s helpful to find out about big changes in your circumstances when they happen, the point of an annual review is to make sure nothing slips through the cracks. By contrast, if you only came to a financial adviser once in a while for an ad-hoc service, it’s very likely you’d be putting off talking about something until it was too late. The advantage of a regular check in is that we can catch things before they blow up. As we said back in December last year, financial planning is a marathon not a sprint. In which case, you can consider the annual review as the water station that keeps you running.

Not like pulling teeth

One final point: it’s an odd coincidence I’ve noticed in many years of seeing clients for their annual reviews. It’s remarkable just how many people seem to be heading to the dentist straight after. Almost like they consider a check-up from their adviser and their dentist in the same bracket.

But I sincerely hope that people don’t. We aim to make our reviews a friendly and reassuring experience, which will leave you feeling confident your finances are under control. You may be going to see us both for check-ups, but I can assure you that an annual review from us is much less painful!