Financial Planning & Advice Jargon Buster
Actuary – A professional who uses statistical modelling and analysis of various documents to make informed predictions. In the case of financial planning this might be to do with a client’s life expectancy or the financial risks a company may face in the future.
Financial Forecasting – A prediction of a company’s projections for profits and expenses based on existing figures, future demands on the business and analysis of financial markets. Financial planners and advisers will consider their client’s financial forecasts when they put together a financial plan.
Financial plan – A plan devised to help an individual, group, organisation or company to achieve a financial goal, for example to ensure financial security in retirement or generate the most profits possible. A plan sets out future investments and how to manage future expenses. Financial Advisors work closely with their clients to develop a bespoke plan best suited to their needs and financial goals.
Independent Financial Adviser (IFA) – A qualified professional who, in a nutshell, provides financial advice! IFAs work without bias for any particular financial service and product provider; they will collate the best advice to suit their clients’ needs based on products from providers across the market. IFA firms are firms that provide these unbiased advisory services.
Paraplanner – This role supports the work of financial planners and financial advisers. They may carry out administrative jobs and some planning work to help financial planners spend more time with liaising with their clients.