Learn about Financial Planning

The benefits of Financial Planning

Financial planning can:

• Make sure you have the right investments for your short, medium and long-term needs.
• Make sure you don’t pay more tax than you need to.
• Make sure you still have an income if you can’t work through disability or long-term illness.
• Help pay off your debts if you become critically ill.
• Help protect your family if you should die.
• Make sure you have the retirement you deserve.
• Make sure your loved ones aren’t faced with a huge inheritance tax bill.

You’ve probably gathered by now that it doesn’t matter what you earn or how old you are. Every one of us always has something to plan for.

When to review your finances

The time to review your finances is right now. And as regularly as you can. You see, life goes through so many different stages. And as we’re all individuals, each stage affects everyone, well, individually. You’ll see what we mean. You’ll also see it’s not as scary as it sounds. Whatever stage of life you’ve reached.

It may seem obvious, but your circumstances and aims depend entirely where you are in life. Yet few of us actually take the trouble to reassess our finances to take this into account. That’s why we recommend reviewing your finances once a year or so to make sure they work as hard as possible throughout your life.

Here are the main life stages, and what you need to think about at each step.

• Starting your first job. Savings or investments will help you buy a car, house or go travelling. A pension? Start one now, and your fund could be bigger in future.
• Buying or moving house. With an interest only mortgage, you may need an investment to repay your loan. And how would you pay your bills if you fall ill or have an accident?
• Getting married. Time to review your finances to account for your joint plans, like starting a family. With your added responsibilities, think about extra cover.
• Starting a family. Help ensure your family is financially secure if anything happens to either of you. Invest now to help your kids eventually buy a car or go to university.
• Changing jobs. As earnings increase, think about adding to your savings or pension.
• Being left an inheritance. Look at Inheritance Tax planning if your estate is likely to fall into the 40% tax band.
• Illness / accident. Plan ahead using critical illness cover or income protection cover.
• Having grandchildren. Invest to help them with their first big purchases.
• Retiring. Get the best income from your pension fund. Look at releasing equity from your house for extra income or home improvements. Plan your estate so your family isn’t left with a huge Inheritance Tax bill.

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