Financial planning is an ongoing process. It's essential to review and adjust your strategy as your circumstances change.
The Autumn Budget is coming, and whilst its contents remain uncertain (despite much speculation in the news), it's a good time to review your financial strategy. Regardless of any tax changes or economic shifts, there are several key steps you can take to ensure your finances are resilient and future proofed as much as they can be.
Pension planning: The cornerstone of retirement
It’s never too early to start prepping for your retirement. Using our “shortfall analysis” system we can provide a detailed picture of how the contributions you’re making measure up against the contributions you need to make to hit your target income.
If it turns out you need to start contributing more to your pension, the sooner you start, the greater the return will be!
It’s also worth considering consolidating your pots if you have multiple pensions as it can simplify management and potentially reduce fees.
Legacy planning: protecting your loved ones
Having a will in place ensures loved ones – particularly children, step-children and unmarried partners – are looked after when you are gone. At the moment we don’t know what changes we may see to Inheritance Tax (IHT) thresholds, but at the moment, the part of your estate which exceeds the limit of £325,000 could be taxed at 40% so it is worth having a plan in place to minimise any potential bills your family may face in the future.
For those with larger estates, Trusts can provide flexibility and potential tax advantages. It’s important to consult with a legal professional to explore your options.
If you don’t yet have a will – or it’s now out of date – we can arrange this through our will writing partners.
Investments: building wealth and diversification
Diversification is essential for safeguarding your investments. By strategically allocating your funds across a variety of asset classes, we aim to mitigate the impact of market fluctuations. Our Wealth Select model portfolio service further enhances this approach. Quilter investment managers closely monitor and regularly rebalances your portfolio to ensure it aligns with your risk tolerance, ethical preferences, and market conditions.
Emergency fund: a safety net for unexpected events
It’s important to build a cushion for those ‘just in case’ moments. Aim to save at least three to six months' worth of living expenses in an easily accessible savings account.
Remember, financial planning is an ongoing process. It's essential to review and adjust your strategy as your circumstances change. By taking proactive steps to future-proof your finances, you can increase your financial security and peace of mind.
If you would like to delve deeper into any of these areas or specific questions about your financial situation please do get in touch.
By Daren Wallbank
Tax treatment varies according to individual circumstances and is subject to change.
Inheritance Tax Planning is not regulated by the Financial Conduct Authority.
Will writing is not part of the Quilter Financial Planning offering and is offered in our own right. Quilter Financial Planning accept no responsibility for this aspect of our business.
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 11/11/2024
