Iain Wishart: My advice? Make a plan WHEN meeting people for the first time, I'm often asked what I do for a living. I always say I'm a financial planner - this usually leads to a conversation - as opposed to financial adviser, which can be met with raised eyebrows or even a stifled yawn. There are key differences between types of financial advice and, more importantly, financial planning out there. Historically, financial advisers have been transaction based and concentrate mainly on finding gaps. They see what products you have and don't have, so they can sell you a financial product that you may or may not need to fill the actual, or perceived, gap. Using a traditional product-based financial adviser like this, especially if they are independent (IFAs), can be a good thing. You could end up with a product or investment that just might help you achieve your aims and goals. Without carrying out detailed financial planning first, this may not be the case. You can have all the assets and income going, but without proper financial planning there is the very real danger you don't get the lifestyle you deserve and achieve financial independence when you want it. You could end up working when you should be playing. This is where proper financial planning, also called lifestyle financial planning, comes in. Financial planning done the right way, always with a cash flow model based around your capital and income needs and lifestyle, looks at where you are now, where you want to get to and by when. A good financial planner will ask the right questions and can calculate if you're on target to achieve your aims and, if not, how to best to martial your resources. He or she will help to provide accurate answers to the big questions such as: Exactly what do you need to earn, save or sell your business for to become financially independent? What do you need to do to ensure that you never, ever run out of money? What do you need to do to ensure that your family is totally financially secure, whatever happens? How much is enough to enable you to achieve and enjoy your desired lifestyle? Real financial planners charge for quality planning work and advice that, as well as being potentially life changing in a good way, stands up on its own merits. Your financial planner will review your plan regularly to make sure you achieve your objectives. Importantly, the delivery of your plan (including the strategy and advice) does not rely upon the sale of a financial product. If the implementation of a financial product is required, this only happens at the end, if there is proof that any such product or investment is required. Proper financial planning can only help improve trust in the financial services industry and real life outcomes for consumers. Planners holding the Institute of Financial Planning's Certified Financial Planner CM professional qualification are well placed to assist you. Iain Wishart is a financial planner at Wishart Wealth Management