01494434544 info@pwwpl.com

Making your financial resolutions long term

15th January 2021

Being a New Year, you may have made some Resolutions (which may already have changed after the recent lockdown announcement, so much for gym membership!). Therefore, why not consider a few Financial Resolutions instead. With the lockdown forcing us to suspend some of our short-term plans, now really is a good time to look at some of the longer-term plans. This is normally the time we remind you about financial matters such as getting your tax return completed by the end of January and ensuring you are using your ISA and pension allowances.

 

They are all very important but, after the year we have just had in 2020, why not take a moment to think a little more broadly about what you are trying to achieve with your money. Rather than simply just adding to your investment portfolio or managing your tax affairs, can we suggest you also consider the five points below. Some may not relate to you or you may already be doing all that we suggest. But in our experience, as we enter a new year, now is a good time to consider your own ‘direction of travel’ as it were. Like any journey, things are a lot easier if the route is planned in advance. 

 

How much income do you actually need in retirement?

 

Note the language here. We aren’t suggesting a retirement date or an age or a total value of your assets. If you are already retired, we aren’t looking at how much you take at present. What we need to think about is exactly what are your long-term income requirements and what assets drive that income.

 

If you haven’t yet retired, try and think about how much you may need in retirement. There will probably be no mortgage payments, no children to feed and clothe, no work costs such as travel. However, whilst your day-to-day costs may reduce, there is a chance for more holidays, more trips out, more pastimes to pay for. For those in retirement, there are issues such as potential Long-Term Care to consider. Once you have considered this, do feel free to discuss your ideas with us.

  

How well is my family protected?

 

Whether you are still working or retired, protection is crucial. We all recognise how important it is to plan for the good things, but it is just as important to plan for when things go wrong. We often tend to think about protection as simple life cover. A lump sum that is payable when you die. But what about the other instances? For those in work, there may be times when you are unable to work due to serious illness or injury. Thankfully, few people get seriously ill during their working lives but when they do, it’s devastating. We all think about what happens if we get a serious illness and die. But what if we get a serious illness and survive? For those who have retired, your protection may be linked to your Long-Term Care or Inheritance Tax planning.

 

As with all Insurance, a balance must be sought between cost and benefit. All we encourage you to do is have a sensible conversation about the risks involved. The percentages of people being affected may be small, but the impact can be shocking.  

 

Is your Will up to date?

 

If you were to die without a Will, you would be said to have died “intestate”.  What this means is that your estate will be distributed according to the rules of intestacy and unlike popular beliefs, this does not mean the whole estate passes to your spouse. However, it is not only important to have a Will, but to ensure that it is kept up to date, especially with the recent changes in IHT concerning your main residence. Finally, do you know where it is? And much more importantly, do your executors? We have too many conversations with solicitors concerning the inability to locate a Will.

You should also take the opportunity to consider your digital legacy. Will your executors be able to find all your online accounts? What about your online presence such as Facebook and Email? What happens to the information that is stored there? 

Have you got a Lasting Power of Attorney (LPA)?

 

 This is a difficult conversation to have, but in our experience, a Lasting Power of Attorney is one of the most important documents available. It allows you to choose people to act on your behalf should you later begin to lose your ability to manage your personal affairs because of physical or mental incapacity.

 

It takes effect, if need be, during your lifetime and is completely separate from a Will. Creating an LPA gives you the reassurance that you know who will make decisions for you, should you be unable to make them yourself. That person will be someone you know and trust to act in your best interests. Having an LPA in place saves considerable expense and time, should your family later need to make decisions for you. 

 

Your succession plan.

 

Your plan doesn’t just involve you. Most people recognise that there will be a legacy to be distributed upon their death. However, if we all wish to leave something when we die, why do we have to wait until we die? Naturally, care must be taken when distributing assets whilst you are still alive, as you may have a future requirement for them, but with careful planning and support, you can not only ensure that you provide support for your family, friends, or charitable project, but you can also gain enormous pleasure from seeing the difference that you make. Finally, you may also be able to mitigate a large Inheritance Tax bill for your loved ones.

 

 

It may be that only some of these suggestions directly affect you, or you may be impressively organised and have them all up to date. Getting these financial matters dealt with means that you can relax in the knowledge that not only are your affairs in order, but you have a clear direction of travel.  

 

If you have any questions, please do contact us, or raise them at our next review meeting. Our aim is to make your life journey as uncomplicated as we can. The assets you have should be there to help you with that journey, rather than simply just being an amount of money that you have, that goes up and down.

 

Ask yourself, do you want to know how much your money is worth, or how much it is worth to you?

 


ABI Guide - Health and safety for small/medium sized businesses

Good health and safety standards help you to run your business successfully.

Aviva Motor Fleet Advice

Employers are legally responsible for employees who drive whilst at work.

Budget 2013

The 2013 Annual Budget Statement painted a somewhat bleak economic picture, alleviated by a few crowd-pleasing bright spots.

Budget Summary

Despite some speculation that Budget 2012 may have brought some unwelcome surprises in the

Charity Fundraising by PWW

This year for the first time, staff at P W White and Partners attended the Amersham carnival on 13thJuly in the glorious weather with temperatures of over 30 degrees C.

Dilnot Report on Long Term Care

Since 2004, the number of Britons aged over 85 has risen by two-thirds, and demand for care has outstripped supply. The UK's elderly population will continue to expand.

Disclosure of all the facts

Are you aware of yourresponsibility to disclose what is considered ‘material’ information inrelation to your Insurances?

Driving Licences and Driving Other Cars Third Party

If you are aged under 70 the chances are that your licence has not expired as driving licences generally expire at 70 unless extended.

Flood Advice from insurers

Insurers risk surveyors have been busy visiting the impacted areas across the UK and one of them yesterday in a flood

Floooding and Commercial Premises

Recent flooding events experienced across the UK, particularly over the last decade, have shown the devastating impact that flooding can have on property, businesses and individuals.

GAP Cover for new & used Cars

P W White & Partners Ltd now have the facility to provide GAP cover when you purchase a new or used (up to 7 year old) car from a dealer.

Have you provided your ELTO details?

ELTO is the Employers Liability Tracing Office which was set up so that all businesses (subject to a few exclusions)

Important information that could affect the validity of your cover

Any intended alteration or extension to your property – personal or commercial, i.e. creating an additional bedroom, bathroom or shower room

Intestacy changes from 1 October 2014

The Inheritance and Trustees' Powers Act 2014 announced some key changes to the intestacy rules.

Motor Insurance Database

If you run a motor fleet have your details been entered on the MID?

NISA New ISA

From July 1 2014 all ISAs will become New ISAs (NISAs).

Paper driving licence changes

From January 2015, the DVLA will no longer issue the paper counterpart to the photocard driving licence.

Pension Lifetime Allowance Limit (LTA)

In 2006 the Government introduced a cap on the value of Pension Pots.

Tax Disc Changes

The new rules, which came into effect on 1stOctober 2014, mean it will no longer be possible to transfer tax when a vehicle is sold.

What is the Retail Distribution Review (RDR)

The implementation of the Retail Distribution Review (RDR) is one of the biggest overhauls of financial regulation since the Financial Services Act of 1986.

Whiplash Reforms

The first stage of the government’s whiplash reform programme was introduced on 1st October 2014

Why to use an Independent Financial Adviser

You may have noticed the recent media coverage following the findings by Which?

Your choices at retirement

When you reach retirement age, with interest rates at historic lows, your most important choice will probably be between

 FSB member logo   Link to Cobra Network website        Click here for the BIBA website

P W White & Partners Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register No: 126673 http://www.fca.org.uk/register.

P W White & Partners Limited Registered Address: Suite 1, Sycamore House, 1 Woodside Road, Amersham, HP6 6AA. Registered in England & Wales, No. 933961.

Neither P W White & Partners Limited nor its representatives can be held responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk.

The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK.

Please read our Privacy Statement before completing any enquiry form or before sending an email to us.