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Personal Financial Planning Community

Why would an accountant need a financial planner?

Author: Tilney

Published: 29 Apr 2021

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When you’re all about numbers, why do you need help with your own financial plans? Tilney’s experience of working with accountants shows that while they focus on their clients and all things tax-related, they can often neglect the bigger picture when it comes to looking after their own finances. Does this sound familiar?

What is the role of a financial planner?

The role of an accountant is well known, but some people are not as aware of the role of a financial planner. A financial planner can help you to build a financial roadmap to get you where you want to go in life and will help to guide you through the process. They have the qualifications and skills to understand the bigger picture and help people like you to recognise what is important and why. They largely concentrate on:

  • Passing on your wealth effectively through estate and Inheritance Tax planning
  • Reviewing your pensions and other savings and investments to ensure you achieve the retirement you want and deserve
  • Making sure your protection needs are met in your personal life and for your business
  • Helping you to save for the children in your life in the most tax-efficient way possible
  • Assisting you with your finances if you experience a life-changing event, such as divorce, death or dementia.

A financial planner will put together a plan, which is sometimes multi-stranded, to help you achieve all of your goals and objectives in the areas that matter to you in the most efficient way possible.

Why should an accountant work with a financial planner?

You could say that an accountant who is too busy to look after their own finances clearly has their priorities right – you’re good at what you do, you’re busy with client work and you hopefully have a good work and home-life balance.

What you might be missing is a safety net to catch you if something goes wrong. As an example, imagine that you didn’t make adequate pension provisions when you were younger because you were too busy establishing your client base. When you reach the age of 60, you may realise that you are going to have to work for a lot longer than you had initially hoped. You’ll probably look back and wish you had help with this sooner. That’s where a financial planner comes in. If you’re too busy to do something relating to your own finances, no matter where you are in your life and career, they will do it for you.

Just as you carry out tax-related tasks for your clients so they don’t have to, a financial planner will do the same for your personal finances.

Can I establish my own financial plan?

In short, yes you could – as an accountant, you clearly have a large knowledge of finances. But do you know all of the intricacies, as well as details of the ever-changing legislation, associated with things like retirement planning, estate planning and protection? For example:

  • Are you making full and effective use all of your annual exemptions when it comes to your pension and giving money away?
  • Do you have protection in place for the key people in your business?
  • Do you have a plan to turn your business wealth into personal wealth as tax efficiently as possible?

Creating a financial plan with a professional financial planner can build a solid foundation for the rest of your life.

Talk to Tilney

If you want to know more about how the financial planners at Tilney could help you, request a free of charge, initial consultation here or call them on 020 7189 2400.

Please remember that investments go down as well as up and you may not get back the amount invested.

Issued by Tilney Financial Planning Limited, authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, No. 00607039 FRN: 136414.

Advice in relation to inheritance tax planning is not regulated by the Financial Conduct Authority, however, the products used to mitigate tax may be regulated.

*The views expressed are the author’s and not ICAEW