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Different Types of Financial Planning

Anyone who wants financial security for their future may be interested in a range of financial planning services. Independent financial advisories (IFA’s) offer assistance for many types of financial planning and include everything from mortgage broker services to pensions and retirement planning.

Types of Financial Planning

In this article, we break down some of the main types of financial planning and explain them in more detail, without jargon.

1. Savings

One of the first steps in giving yourself financial security is a savings fund dedicated to supporting you during emergencies. This savings fund is commonly known as a ‘rainy day fund’ in the financial industry and covers you in unforeseen circumstances such as job loss, major illness or injury, and car or home repairs. Experts usually recommend having enough money in this fund to cover three to six months of living expenses. Having this cash readily available is an excellent way to prepare for the unexpected and your first step on the ladder to having financial security. This is one of the basic types of financial planning that everyone can adopt even at the beginner level.

An independent financial advisory like Suttons IFA can help you to navigate through this aspect of your financial planning, helping you to achieve your financial goals.

2. Pensions and Retirement

Another important type of financial planning is effective pension and retirement planning. Many of us, particularly when we are younger, are only really concerned about the present, meaning all too often pension and retirement planning are not at the forefront of our minds. However, if you want to enjoy your current lifestyle through your retirement without worrying about running out of money, there is no time like the present to start planning ahead.

An IFA can help identify what you want your retirement to look like, assess your current financial situation and outline a plan of action with recommendations on how you can get on track to meet your retirement goals.

3. Mortgage and Equity Release

No matter what stage you are on the home-owning ladder, whether you are a first-time buyer, experienced homeowner, or property landlord, financial planning is an important element that everyone will need to be aware of. Purchasing or re-mortgaging a property can be stressful due to the number of factors that must be taken into consideration such as legal costs. A mortgage advisor can assist you with any queries or concerns you may have as well advising you on the best course of action.

4. Investments

Another excellent type of financial planning is investing. Investments are key to protecting the value of your savings against inflation and are an excellent way to deliver the returns you may wish to achieve. However, they can seem like a minefield, particularly if you are not very financially literate. This is where an independent financial advisor comes in to try and deliver the highest returns in line with your chosen risks and reward allowing you to have sensible investments in place that you feel comfortable with.

5. Illness and Life Insurance

Another way that you may want to plan for the future when it comes to finances is life insurance and critical illness coverage. Having one of these policies in place can help to protect you, your loved ones, and your assets in the event of an injury, death, or health condition that means you can no longer work. Although it isn’t the nicest thing to think about, it is incredibly important if you want as much financial security as possible.

With the help of an IFA, you can get a policy that gives you the right level of cover, fitting your personal needs, at better rates.

6. Inheritance Tax

Another type of financial planning is inheritance tax, this area is particularly difficult to navigate by yourself and the stakes are high. An independent financial advisor like Suttons can support you by helping you understand your options when it comes to arranging your estate, and ensuring that you pass on as much wealth as possible to your loved ones so that no more goes to the taxman than necessary.

7. Cash Flow Planning

Cash Flow planning is one of the most important types of financial planning. Companies and Individuals forecast their short-term or long-term expenses for their cash flow. Many a time some sudden unexpected expenses occur. You must plan your cash flow accordingly keeping everything in mind otherwise, it can lead to bankruptcy. You can take assistance from Advisors regarding these types of financial plans for maintaining the best possible cash flow of your hard-earned money.

8. Child Future Planning

If you are a parent, you must be worried about your child’s future plans. Child future planning is one of the most important types of financial plans for parents which will help them to safeguard their child’s future. These types of financial planning include various expenses such as education expenses, marriage expenses, illness expenses, birthday and celebration expenses, etc. For achieving these financial goals, you must follow a defined strategy. Child Future planning advisors can help you to make the best plan for your child’s future according to your income and expenses.


People are usually worried about their short-term and long-term financial goals. They adopt various types of financial planning to cater to their financial needs. It is a real task to find the best types of financial plans. The above-listed types of financial plans can provide you with the best future safety for you and your family. The Advisors can provide you with the best assistance for all types of financial plans.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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