January 14, 2024
While ringing in the New Year this time around, did you make any resolutions? Perhaps, like us, you resolved (again) to take it easier on the mince pies this year. Or maybe you decided on something bigger, like making 2024 the year you take control of your health, change jobs, or start to enjoy a well-earned retirement.
Whatever your plans, have you considered your financial health?
Setting clear financial goals will help you achieve your other goals in life. Creating a financial plan, which you review regularly, is an important step towards identifying and realising your objectives, and making a secure financial future much more likely.
If you haven’t yet considered your financial resolutions for 2024, here are our suggestions to get you started.
The beginning of the year is a good time to assess your financial health. Determining what assets and debts you have, calculating your current net worth and understanding whether you’re on track to achieving your financial goals will help you to understand what other resolutions you need to make.
It’s also a good idea to review your monthly budget, and look at where you might be able to make savings that you could use to pay off any debts or use to increase your long-term savings and investments.
If you haven’t already got a plan, now is the time to make one – your IFA can help you determine your goals for a healthier financial future and make a plan for achieving them. There’s still time to make use of your tax-free savings allowances before the financial year-end in early April. If you have maximised those allowances already, you could start planning for 24/25.
If you have credit card or other debts, it’s usually more beneficial to pay them off before topping up your savings. Similarly, if you are able to overpay your mortgage (monthly or annually) you could find yourself mortgage-free sooner than you think.
Take a close look at pensions, savings and investments, to see how they are performing and whether anything needs to be reset. Now is also a good time to make sure that you know where all your pension pots are, and consider consolidating them if necessary.
You might also want to look at whether you are making the most of the current allowances for pension savings. Allowances increased in 2023, so you could have an opportunity to top-up your pension pot before the financial year-end. Find out more about pension allowances.
If you haven’t had a review with an IFA recently, now is the time to book one. They’ll go over your entire portfolio with you (and can also help you with reviewing your finances generally), and look at how your investments are performing. Then they will discuss what your options are and help you implement any changes that they recommend.
As we move through the different stages of our lives, the need to protect ourselves and our family from the unexpected also changes. There is no one-size-fits-all solution, so it’s important to talk to your IFA and review any cover you have in place to ensure it still gives you the protection you need. This could take the shape of life insurance, critical illness cover, or income protection – particularly important if you are self-employed.
Estate planning isn’t just for the super-wealthy. Taking into account house prices and the freezing of the Inheritance Tax (IHT) nil-rate band until April 2028, more people than ever could find that their estate incurs tax on their death. However it is a certainty that we will all die one day so planning for how your assets are distributed can be of great assistance to those left behind.
Many people find it a difficult subject to broach, especially with their loved ones. Your IFA can help, by finding out what’s important to you when it comes to passing on your wealth to the next generation, giving you an objective view of your options.
Estate planning is not just about what happens after you die. Understanding how to make gifts during your lifetime can ensure that more of your wealth is passed to your loved ones than to the taxman.
If you don’t already have an independent financial adviser, it could be time to find one. Professional financial advice makes a difference when planning for your future, and the right IFA will help you to determine your aspirations and goals, and create a plan for getting you there.
At Talis IFA, we understand that money is of secondary importance to many other aspects of life. That’s why we take a ‘life first, money second’ approach, meaning our recommendations are based on developing a deep understanding of your current situation and future plans – whether that’s saving for the future, freeing up money to live your retirement plans or helping out your family.
Because we’re fully independent, we’re not tied to any particular pension provider or product, so our advice is always completely objective and focused on what will work best for you. We might suggest options that will save you money in the long term – like consolidating pension pots, for example. But if we review your current finances and consider that they are in the best shape they can be, we’ll say so. We’ll never recommend changes that aren’t necessary.
To discuss your financial health, get in touch with one of our team today.
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