17/12/2018 0 Comments
Advice matters - whatever stage in life you're at
The financial products and services we need to navigate through life will change with our circumstances. In the early years, our financial needs are likely to be more straightforward, getting increasingly complex as we grow older and experience more of life’s rich tapestry.
20 - 30’s: From single and sorted to settling down
Ah, those carefree days of being young, free and single; possibly still enjoying student life (albeit probably with a loan), starting an apprenticeship, or moving onto and along the career ladder.
Our financial needs at this point might be fairly basic: an inflation-beating savings plan for those starting to think about homeownership, income protection for the workers. If budget allows you might even think about cover that helps to pay the bills in the event of an accident or illness. And when you meet someone and start a family, or take on your first mortgage, the need for protection insurance becomes essential.
40 - 50’s: Accumulating wealth and paying off debts
For most of us, financial wellbeing will depend on whatever it is we do to earn money. At this stage in life, as well as securing good living standards while we’re working, it’s important to think carefully about putting some of our income aside for the future.
Generally speaking, and subject to investment performance and charges, the earlier you start saving and the more you save, the better shape your financial assets are likely to be in when you need to draw on them. But deciding on the right investment strategy is complicated because of the various factors that can influence it. For instance:
- your investment objectives - what do you want from your money?
- the level of risk you’re prepared to accept and the potential level of loss your finances can tolerate
- the types of investments you should consider in view of your objectives and risk profile
- the tax-efficiency when it comes to holding these investments
- the ongoing management of your investment
Over 60: Taking your pension; enjoying retirement
When the time comes to draw money from your pension, you’ll need to decide how and from where. Self-evidently, the greater the value of your investment, the better the prospect of a financially-rewarding retirement. But the more investments you have, the more important it will be to think very carefully about where you take money from when the time comes, and how you continue to manage your money throughout your retirement.
It’s also wise to make sure your estate is in good order for any potential beneficiaries. Successful estate planning is all about helping to control the amount of tax you pay on the wealth you create and there are a number of key areas to consider as part of this:
- A will
- Lifetime gifts
- Use of exemptions and reliefs
- Tailored investment products
- Pension arrangements
- Life assurance
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen. The value of investments and any income from them can go down as well as up and you may not get back the original amount invested. The will writing service promoted here is not part of the Openwork offering and is offered in our own right. Will writing is not regulated by the Financial Conduct Authority.
We can provide high-quality financial advice whatever your circumstances. Please talk to us to find out more.