New Year Resolutions often include fitness goals, and many brave resolutions are made at the beginning of the year.
Why not add improving your financial situation to your New Year Resolutions list? With support and advice, you will likely be able to reinvigorate your savings and investments.
Here are a few ideas ….
Advice is essential.
Finances can be complex, so getting expert, independent advice is essential when adding finance to your New Year’s Resolutions.
If you have not used an adviser before, could you check to see if they are on the Financial Conduct Authority (FCA) register, what permissions they have and a history of the firm and any adviser?
Check out their website and look for testimonials.
Dealing with a regulated firm means you have the protection of the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Scheme (FOS) in case things go awry.
Dealing with debt as a New Year Resolution.
Some debts are unavoidable, such as a mortgage. But that doesn’t mean you have to stick with your current arrangement.
We can tell you if a better deal is available, if overpaying with your existing lender might be worthwhile, or if you might benefit from switching products.
Did you know some lenders let you switch products up to 6 months before your current product expires?
Credit card debts often increase after the festive period. Ensure you have these under control, or consider a full review of your liabilities and whether consolidation is an option.
Review your Emergency Funds
You should aim to have three to six months’ salary on deposit in case of emergency.
We can point you toward the best interest rates and place to hold the cash.
Even if you are retired, having money in cash on deposit is still very important, and getting the best interest rate will help you combat the effects of inflation.
With the recent changes in interest rates, savers can now achieve more than 4%, but don’t rely on your bank to tell you!
We still see accounts paying 0.5% when a simple review and switch can substantially increase this.
Read why you need an Emergency Fund
Read more about investing in an ISA.
Refresh your investments
If you haven’t used this year’s ISA allowance, we can provide advice and guidance and help you arrange it.
An individual’s 2024/25 ISA allowance is £20,000, which can be invested in stocks and shares, cash, or a combination.
Please don’t wait until the new tax tax-year to invest, do it now if you can.
When was the last time you reviewed your attitude to risk and reward, what your expectations are for your money, and what you can afford to lose, if any?
Review your retirement planning.
What type of provision have you made?
Most of us don’t save enough into our pension if we save anything at all.
This is a big mistake.
Don’t just pay in and hope for the best!
There are tax breaks to be had, and if you arrive at retirement without a decent pension pot, you could face a bleak old age.
Look at your employer’s scheme or any individual personal pensions you may have. Look at the performance of the funds. Do they match your attitude to risk? Can you pay more? Check out the charges and flexibility going forward.
Aim to review any older paid-up/frozen schemes.
Make a Will
If you die without leaving a Will, you will probably bequeath your loved ones a heap of headaches.
They’ll have to wait for your estate, which could be done quickly to be sorted out and cleanly if you have left clear instructions.
Have you considered Lasting Powers of Attorney for your affairs?
How many times do you hear about children having issues accessing their parent’s assets when the parents have succumbed to an illness which reduces their capacity to deal with financial matters?
Protect yourself and your family.
Do you have adequate life insurance?
Is it written in trust for your loved ones? What about income protection and critical illness cover?
Basic life assurance can help solve many problems when a loved one dies.
It is often said that those who fail to plan plan to fail. This is where we come in: we’re financial planners and are here to help you succeed.
Contact us today if you wish to review your finances.
