Your finances play a role in every stage of your life, but preparing effective financial plans can be challenging. A professional adviser could help you make informed choices suited to your unique needs and aspirations.
Your finances play a role in every stage of your life, but preparing effective financial plans can be challenging. A professional adviser could help you make informed choices suited to your unique needs and aspirations.
In today’s ever-changing work environment, it pays to stay informed and plan ahead. Firstly, you can help secure your family’s financial future by putting your life insurance policy into a trust, which may help to reduce inheritance tax liabilities and could give you greater control over how the policy payout is distributed.
Secondly, when buying and selling property, it’s important to plan effectively to minimise the potential costs while maximising possible profits. You need to budget for mortgage, legal, estate agent and surveyor fees which can easily run into thousands of pounds. Stamp duty is a cost which buyers often overlook – especially the additional 3% charge for an additional residential property.
Thirdly, you may wish to consider if your earnings could be disrupted. Many people take out life cover but overlook critical illness cover, which can be just as important: not only could it ease the financial burden that can come with critical illness, it will also ensure your family is taken care of if you should become unable to.
A professional adviser can help you to get the most of your money by assessing the level of risk you’re prepared to take, and by ensuring that you invest tax-efficiently.
Putting a value on an advisers value’ is as subjective and unique as each individual investor. For some, the value of working with an adviser is peace of mind. For others, Vanguard found that working with an adviser can add around 3% in net returns.
Source: Putting a value on your value: Quantifying Vanguard Adviser’s Alpha in the UK
In 2023, the cost of raising a child to age 18 was £166,000 for a couple and £220,000 for a lone parent.
Source: https://cpag.org.uk/policy-and-campaigns/cost-child
When it comes to your career, it’s useful to plan for both progress and setbacks. As many as 1 in 10 people intend to change their career, but effective financial planning is essential to turn intention into action. Meanwhile, if your employment situation is unpredictable, the Money Advice Service suggests having at least three to six months of your living expenses saved up and easily accessible.
If your dream is to start your own company, effective financial planning becomes even more important.
On average, UK startups budget £5,000 to launch. Further, the average UK startup spends £22,756 in their first year, according to a study commissioned by Geniac.
But, as only 42.5% of SMEs survive past their first five years, the key is budgeting enough to not only launch, but survive and thrive in the long-term.
Source: https://www.tide.co/blog/business-tips/how-much-does-it-cost-to-start-a-business/
While professional financial advice comes at a cost, understanding the potential long-term benefits and value in terms of investment returns, tax savings, and safeguarding your financial future is crucial for determining if working with an advisor is a worthwhile investment.
We take a look into the real value of financial advice.
Summary
Source: Unbiased (Feb 2024)
Clients of financial advisers can hope to be almost two-fifths a year better off in retirement than those who opt to take financial decisions by themselves.
Source: https://www.aegon.co.uk/news/adviser_clients_39ayearbetteroffinretirement.html
£220,000
The overall cost of a child up to age 18 (including rent and childcare) is £220,000 for lone parents.
£22,756
The average UK startup spends £22,756 in their first year, according to a study commissioned by Geniac.
2/5ths
Clients of financial advisers can hope to be almost two-fifths a year better off in retirement than those who opt to take financial decisions by themselves.
The Financial Conduct Authority do not regulate trusts and inheritance tax planning.
The value of pensions and investments and the income they produce can fall as well as rise, you may get back less than you invested