Understand the Real Value of Financial Planning

As I begin writing a new chapter in my upcoming book on the psychology of money, I find myself focusing on a critical theme: our relationship with money and the importance of controlling it—rather than letting it control us.

This chapter will examine the actual value of financial planning, a topic that has undergone significant evolution over time. In this blog, I’ll share some key insights that financial planners—and their clients—can use to understand better what planning means today.

What Is Financial Planning?

Historically, “financial planning” was often limited to product selection. You took out a pension, bought life insurance, or signed up for an endowment plan—with little clarity on whether it was the right fit or whether you were on track to meet your goals.

Over time, the focus shifted to investing. Financial planning became synonymous with portfolio performance. I helped build a successful business around that model—one that genuinely delivered above-market returns during my tenure.

But the world has moved on.

Today, financial planning is no longer about beating the market. It’s about understanding the person behind the money—their goals, challenges, and lifestyle—and building a long-term plan that supports them.

Is DIY Investing Cheaper?

DIY investing appeals to those focused purely on cost. It promises control and lower fees—but it also requires you to do everything yourself:

• Develop your own financial plan

• Select the right investments

• Manage your future through every life stage

There’s ample research to show that we are not always the best decision-makers when it comes to money, especially when emotions, biases, or economic shocks are involved.

What Does a Financial Planner Provide?

It can be challenging to accurately articulate the value of financial planning. That’s why we encourage planners to create an Annual Fee Expectation Statement—a clear summary of what clients can expect in return for their ongoing fees.

Here are just a few of the tangible benefits clients receive:

Four Core Elements of Value:

• Ongoing Expert Advice – This is more than a one-time meeting; it's continuous, tailored financial support.

• Long-Term Security – Strategies to grow, preserve, and transfer wealth across generations.

• Tax Efficiency & Risk Management – Structuring finances to minimise tax and manage downside risk.

• Peace of Mind – Confidence that professionals are looking after a client’s financial life.

What Else Is Covered by the Annual Review?

• Regulatory Fees – Supporting FCA-authorised and compliant services.

• Professional Indemnity Insurance – Protecting both clients and the business from financial risk.

• Compliance & Reporting – Ensuring advice meets regulatory and ethical standards.

• Technology & Security – Robust systems that protect personal data and deliver modern advice.

• Holistic Financial Planning – Covering pensions, tax, investments, protection, and estate planning.

• Retirement & Wealth Strategies – Planning for financial independence and sustainable income.

• Unlimited Support – Access to an adviser when needed — not just once a year.

• Market Monitoring & Updates – Insights that keep the client informed in a changing world.

Conclusion: The Value of Advice Is Clearer Than Ever

At its core, financial planning is about improving lives, not just portfolios. It provides clarity, structure, and support in a complex financial landscape.

Whether you're a financial planner communicating your value or a client wondering what you're paying for—an Annual Fee Expectation Statement can be a powerful way to make that value visible.