How a sense of clarity changes everything

Of all the benefits financial planners can provide, perhaps one stands out more than any other. It’s one that’s intangible, instinctive, qualitative, insightful and potentially life-changing at the same time.

We are not talking here about tax management, asset allocation, insurances, estate planning, retirement or investing. All those services are important. But no, we’re talking about the clarity that an astute financial planner can provide.

When first deciding to consult a financial professional, many have only a vague understanding of what they really want. They have material aspirations, of course. But those can just be the manifestation of something deeper.

The ‘having it all’ myth

We learn throughout our life, some more slowly than others, that we can’t ‘have it all’. We eventually accept that there are trade-offs. To succeed in one area sometimes requires sacrifices in another.

In economics, this is known as ‘opportunity cost’. It refers to what you are willing to give up when you choose one path over another. You might opt to focus on saving for a home, but realise that this comes at the cost of postponing a longed-for world trip.

We are forever making choices about what we are willing to sacrifice in one area to gain somewhere else. A change of career may require a cut in salary but may also offer the possibility of deeper fulfilment. Building a home extension to accommodate ageing parents may require eating into the nest egg, but it also offers the joy of seeing one’s own children spend precious time with their grandparents.

There’s usually a trade-off between short-term material satisfaction and longer-term happiness, between a sacrifice here and greater reward there. What a financial planner provides for those struggling with these dilemmas is a sense of clarity around your goals.

Digging deeper

Your discussion with your planner shouldn’t begin with a rather prosaic analysis of your assets, liabilities, income, cashflow and spending. It should be a much deeper conversation about what you value most. How do you rank material wealth against family and legacy, mental and physical health, and your creative expression?

In this context, money and material aspirations, while important, are revealed more as a means rather than an end in themselves. By helping you develop and articulate what is most important to you, the planner can give you a clearer sense of possibility.

For instance, while a round-the-world trip might remain on your bucket list, you might decide you can safely delay it a few years while you renovate. In the meantime, your planner tells you that you have sufficient cashflow for shorter breaks closer to home.

You might be tired of your high-pressure job and yearn to retire, but feel that your retirement savings pot isn’t big enough to live on comfortably. In this case, your planner might suggest carrying on working, but in a more fulfilling occupation that brings new friends, interests and a sense of purpose.

Building a bridge

As objective professionals with a combination of empathy and technical know-how, expert planners can give you greater clarity about life’s inevitable trade-offs. More importantly, they can show you how to build a bridge between those competing options to get you closer to your ideal life.

Ultimately, the resources we have are limited — our money, our time, our attention, our physical and mental energy. But these resources can go much further if we have a clearer sense of our purpose, our priorities and what we truly value.

That clarity is what a good financial planner can bring. Please get in touch if you feel like you need some Carbon clarity in your life.

If you have any questions or wish to discuss any of the content further then please contact Barry O’Neill

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The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.

This communication is for general information only and is not intended to be individual advice. It represents our understanding of law and HM Revenue & Customs practice. You are recommended to seek competent professional advice before taking any action.

Tax and Estate Planning Services are not regulated by the Financial Conduct Authority.

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