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Our advice solves problems and
adds value
Making your savings grow and being able to
retire when you want to is one of the most important financial objectives for
most people. Bur achieving this goal takes sound planning and strong
perseverance.
Financial Planning is a jigsaw
You have to put the right pieces together to form the picture. The pieces are:
- savings
- investments
- protection and
- taxation.
Get it right and the picture is rosy, but get it wrong and things could look very hazy indeed.
The problem is
life does not come with a picture on the cover of the box, like a jigsaw.
These
are some of the questions you have to ask yourself:
- When should you begin saving &
where should you put it?
- What form of protection (life assurance) do I need & when is the right time to start?
- How much should I be putting away
for savings & retirement?
- Am I paying too much tax?
Sadly, the answers to each of the questions
vary with the person, depending on their individual circumstances, and there
are certain strategies that make sense in most cases. Identify the broad
principles that are relevant to your situation, and use them to improve your
financial standing.
Financial planning is an ongoing process.
You have to monitor the plan and make the necessary adjustments when necessary,
to ensure that you are moving in the right direction. The concept is simple, yet
many fall short when it comes to implementing it. Try not to be one of the
latter.
Build a framework
To develop this framework, follow the five
D's:
- Decide where you are today
- Define where you want to be in
some time in the future
- Discuss your goals and financial
objectives with your IFA (we could help here)
- Develop a plan, with our
assistance, to take you in the right direction to achieving your targets
- Drive the plan forward, to make it
happen
Setting realistic and achievable targets
(goals)
You need to bridge the gap between what you
can achieve financially with what you dream of doing. This involves balancing
head (financially prudent strategies) with heart (emotionally acceptable
thresholds).
Try to meet your objectives by setting a
number of short, medium and long-term goals and prioritise them with each
category.
Common goals include the desire to:
- accumulate a large estate to pass
on to your heirs
- tie in charitable aims
- accumulate wealth to purchase a
business
- be able to retire comfortably
- have sufficient insurance cover in
the event of serious illness or loss
- minimise taxes where possible
Making the most of your investments
It is important to understand the
difference between saving and investing, when determining your financial
strategy.
f you save money with a bank of building society in a deposit account, you will
earn interest. If you invest in stock & shares or mutual funds, you have the
opportunity to earn dividend income and benefit from capital growth, as shares
go up in value. records show that in the long-term the best share based
investments outstrip the best building society accounts in terms of the total
returns they generate.
Please remember however, that shares can go
down as well as up, and dividend income can fluctuate. Choosing the wrong
investment can get you less than you put in. The watchword is caution, if
something looks too good to be true, then it possibly is not true.
Tax efficiency
Try to avoid having to pay tax on savings
and investments where possible. There are a number of investment products that
are tax-free, both for income and growth.
Where our advice solves problems and adds value
Use our skill and expertise to guide you
through the maze of financial options. We do this for a living and can point you
in the right direction and then ensure, by regular monitoring, that you stay on
course.
- We ensure that you choose the best
financial vehicle to match your risk profile and
financial objectives
- Avoiding the tax consequences of
different investments and savings accounts
- How to mitigate income and Capital
gains taxes
- Tax shelter investments and which
is the best for you
- Saving for your retirement to
allow you to retire when you want to
- Assisting you to set realistic
goals and monitoring them on an ongoing basis
- Choosing the best Tax free
investments for you
- Mitigating potential IHT liability
on your estate, and ensuring that you pass your hard won wealth on to your
beneficiaries
To talk this over call: 01299 271471 (working hours)
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