Here are some pointers to help you to consider opportunities. Unless otherwise stated, the rates refer to the tax year 2022-2023.
I started writing this Newsletter on May Day and the news from around the world underlined that whenever we are in market conditions such as those that surround us now (we spell it out in this month’s Newsletter), it is sensible to review the balance of our investment portfolios – and to assess our income and capital needs over the next few years.
Plan ahead! As we always recommend, regularly review all the assets in your portfolio, as well as your income and capital needs – especially when situations such as we have now place so much pressure on the markets.
Some key golden rules, the ‘foundations’ for building on your prudent financial planning strategies, are:
(*) Review your liquidity;
(*) Ensure that you have sufficient liquidity to meet your short-term and emergency cash requirements;
(*) Review your capital requirements over the next, say, three years;
(*) Take advice – and when doing so, specifically check that you will have sufficient liquidity to meet those capital requirements when needed – aim to avoid being a forced seller.
It’s all about lifetime financial planning and the Lifetime Financial Planning Service we offer as part of our added value services for our clients, incorporates cashflow modelling and financial forecasting for every year from now until we shuffle off this mortal coil. When we first build the plan, and when we subsequently review it with you, we key in or update information and explore questions like:
(*) People – You, your family – and those whom you wish to take into account – updates
(*) People – Your personal circumstances – any changes that are known or are possible for the future.
(*) Employment – Remuneration – current salaries, and possible changes.
(*) Employment – Company benefits – review any company benefits e.g. Death in Service.
(*) Employment – Related Insurances – Income Protection and Health Insurance.
(*) Redundancy – If redundant, how do you plan to replace company benefits and insurances?
(*) Income Needs – Review your estimated budget for living expenses.
(*) Capital Needs – Possibly for education, property purchases, debt repayments, but always for emergencies.
(*) Savings and Investments – Movements both up and down in capital values as well as the income produced.
(*) Retirement Planning – Changes in possible retirement dates and value of pension pots.
(*) Taxation – Income Tax, Capital Gains Tax, Inheritance Tax, current and possible future changes and their effect on all of the above.
Above all, review your plans to always have cash readily available in an emergency – say an amount equal to 3 to 6 months’ expenses.
Factor in any other considerations that may require a cash sum or an increase in regular expenditure. If you have company benefits, make plans in case your employment ends prematurely and they are lost. For example, if you could be made redundant, or your employment has already ended, consider planning to take out insurance cover in your own name – low cost, short term, life insurance could be considered to replace loss of Death in Service Benefits especially if you earmarked the lump sum for a specific purpose such as repaying a mortgage.
All too complex? Too many imponderables? Confusing interaction? Err … No. It’s simple. We collect, collate, and key in all the information for you and produce year-by-year forecasts as a clear and easy to see and understand picture that we draw for you. And it is a simple matter to keep that picture up to date as circumstances change. So, if you want:
(*) to have more clarity about your financial planning future over your lifetime, and
(*) to know if you are in danger of running out of money, or
(*) to know that your financial picture considers all of your assets, not just your portfolio…
…then help is just a telephone call away. You need only call us, or email us, to arrange a Lifetime Financial Planning discussion or review.
We have set out above what is only a brief summary of some key points that involve quite complex rules. Always take relevant professional advice before taking, or refraining from taking, any action.
Barry Fleming & Partners has grown from a tax advisory background into a broader business that encompasses investment management. Both things matter for wealth management, retention and creation. That expertise makes the company strikingly different from others.
This capability allows Barry Fleming and Partners to use its strength in tax advice to take a 360-degree-view of a financial situation to give much broader, more comprehensive advice.
We bring together up to the minute tax, estate, investment and retirement planning advice to create individual, ‘joined up’ financial strategies. This allows our clients to understand and have confidence in how they can best control, retain, and build their assets and income to achieve their objectives with least risk.
A high level of service is key to our long-term client relationships. We work collaboratively. That means our clients can benefit at all times from having ready access to our team of financial planners.
Barry Fleming & Partners are an independent financial advisor specialising in ISA’s, Pensions, Tax, Trusts, Estate Planning, Inheritance Tax Planning (IHT) and other Financial Planning areas. Please don’t hesitate to call on 01488 608 686 and ask to talk to one of our financial advisors. Alternatively use the contact form on our home page.