Planning for a secure financial future in an uncertain world
With the cost of living projected to increase over the next few weeks, months and possibly years, adequately planning for your future is increasingly important.
When planning for your future, consider your specific objectives. How can your assets be used to meet your future needs?
Whether the funds need to be retained for your long-term financial security, such as retirement planning, or needed to meet shorter term aims, such as helping your children through university or to buy their first home, you will need a financial plan built just for you.
As your financial planners, we would use lifetime cash flow planning to build such a plan. This exercise looks to project the levels of capital and income needed to provide for your future financial security, and once sufficient funds are earmarked for your essential needs, you can then start to consider the levels of expenditure you may want to make for the fun things in life.
Once your plan is established, it is then all about how to make the money work both smarter and harder for you.
Consider additional pension contributions to take advantage of the valuable tax relief available to reduce your immediate tax bill, as well as the long-term tax efficient growth potential and inheritance tax benefits associated with pensions.
You may have the ability to use brought forward unused allowances from previous years to maximise the benefits via a large single ad hoc contribution. However, make sure you do not exceed your annual and lifetime allowances, or you may face punitive tax penalties.
ISAs will enable you to avoid unnecessary tax going forward, whilst other tax efficient options, such as investment bonds, may allow you to defer future tax liabilities to manage your tax position efficiently.
Whatever the tax wrappers you use, selecting the appropriate underlying investments is key to avoid taking unnecessary risks whilst offering sufficient potential to meet your lifetime goals. A full understanding of your attitude to risk, capacity for loss and future financial plan will enable us to match the right investments for your personal plan.
As highlighted by our ‘Planning for your future: Financial clarity in an uncertain world’ report, 24% of individuals aged between 35-59 and 30% aged over 60 have never taken financial advice yet could most likely benefit from doing so.
The content of this article is for information only and does not constitute formal financial advice. This material is for general information only and does not constitute investment, tax, legal or other forms of advice.
You should not rely on this information to make, or refrain from making any decisions. Always obtain independent, professional advice for your own particular situation.
Kreston Reeves Financial Planning Limited, Independent Financial Advisers. Authorised and regulated by the Financial Conduct Authority.
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