Tag Archives: Financial Planning.

Financial Planning: ‘What If’ Scenarios

Financial Planning for more secure and independent future

With prudent financial planning virtually anything is possible when you manage your money the right way. But it’s important to have realistic expectations of what your financial resources can achieve to enable you to achieve your financial and lifestyle goals, without putting your future plans at risk.

Financial Planning - What If Scenarios

Key to this is understanding how each financial decision can affect other areas of your financial and lifestyle plans.

You also need to visualise that if there are any future bumps in the road on your journey, you’ve considered different ‘what if’ scenarios and have taken the right approach to protecting yourself and your family against the consequences.

Regular annual reviews of your personal plans and financial circumstances will also help you to adapt to your life changes and make you feel more financially secure and independent.

Lifestyle
Your financial plan should start with you – your hopes, fears, dreams, goals and vision for the future, incorporating both your current and future desired financial and lifestyle plans.

Return
Once you have a better understanding of your financial and lifestyle goals and what you want to achieve, together we can determine the required investment return in order to achieve your lifestyle goals.

Asset allocation
Your required investment return will determine the asset allocation of your investment strategy, taking the associated investment risks into account.

Risk
It’s important to look at risk in the context of what you are trying to achieve, including how realistic your financial and lifestyle goals are based on your financial circumstances and what it is that you are trying to achieve.

We’ll spend time understanding your risk profile in detail – this is not limited to investment risk, but also includes inflation risk and behavioural risk.

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For independent, expert advice on financial planning, wealth management, investments and more, please contact Farnham-based Fish Saltus today on 01252 931265 or complete our short enquiry form and we’ll call you back. 

Remember, Unwritten Financial Goals Are Just Wishes

When thinking about your financial goals for 2022 and beyond – what do you want to accomplish?

Financial goals help us understand what areas we need to focus on, provide a framework for action planning, and give us a sense of accomplishment as we work toward achieving them. Sometimes it’s hard for us to imagine the future we want because we are so busy trying to get through the day.

Financial Goals 2022

If you do not know where you are going on your life journey, how will you know when you arrive? This is very true about the importance of having financial goals. You need to set financial goals to help you make wise financial decisions, and also as a reward for your efforts. Goals should be clear, concise, detailed and written down. Remember, an unwritten goal is just a wish.

Identifying milestones along the way towards success
Goal setting is an effective tool for personal and professional growth. Think about your goals for this coming year: What do you want to accomplish? Is there anything preventing you from achieving those goals? How can you overcome any obstacles that might come your way? Once you have a clear understanding of your desired outcomes, you can develop a plan for achieving them, including allocating resources and identifying milestones along the way towards success.

Goal setting enables us to stay focused on our end targets while also ensuring we have all the necessary support in place to meet our goals on time. The benefits of goal setting can be seen in almost any area of life, but the most important thing is to choose goals that work for your individual needs and desires while being able to balance them with what you have going on in every other part of your life.

You have probably heard the saying: ‘If all you have is a hammer, everything starts to look like a nail.’ So it’s important to know when and how to use a certain tool at a given time.

Each of your financial and lifestyle goals should be Specific, Measurable, Attainable, Relevant, Time-bound (SMART).

Specific
Your financial and lifestyle goals need to be as specific as possible, because otherwise they won’t give you enough direction to follow through. Look at your goals like a lamp lighting the way – the brighter the light, the clearer the journey ahead. If you don’t have clearly defined goals, it can be easy to procrastinate. Think about your life and what you want to achieve, and what action you need to take to achieve the outcomes you want.

Measurable
Measurable goals are essential for evaluating the progress of your journey. It’s important to give yourself realistic deadlines, to make them action-oriented, but ensure they are realistic with an appropriate timeline. Adding specific dates and values will make your progress quantifiable, enabling you to complete your goals and visualise your destination.

Attainable
Be honest with yourself and set realistic financial and lifestyle goals. Decide what you want to accomplish. So, start with the highest on your priority list. We know it’s easy to be overwhelmed by everything that needs to be done, so we’ll help out with the process. By reviewing your financial and lifestyle goals annually with us, it gives you an opportunity to formally review them, update them and review your progress since last year.

Relevant
It’s essential to align your financial and lifestyle goals with the direction you want to take. Balancing the alignment will give you the focus you’ll need. If you think about it, a goal is defined as ‘a desired result’. And a resolution is ‘a firm decision to do something’. So they are really very similar. When setting any financial and lifestyle goals, ask yourself what each goal means to you?

Time-bound
Having a destination point will mean you’ll get to celebrate when you accomplish your goal. Having set deadlines gives you a sense of urgency that is lacking when goals are open-ended. In other words your financial and lifestyle goals should be time-based, time-bound, timely, tangible and trackable.

Making additional investments
Do you have the means to make additional investments necessary to accumulate the required assets to achieve your goals? Don’t neglect to consider the effects of taxes on your savings and investments. After considering the foregoing, you might determine that you can achieve some goals in less time. Or you might find that it could take longer. The time horizon is important to setting realistic goals.

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For independent, expert advice on financial planning, wealth management, investments and more, please contact Farnham-based Fish Saltus today on 01252 931265 or complete our short enquiry form and we’ll call you back

Combined Finances

Combined Finances

Planning Ahead For Your Financial Future Together

Some couples may prefer to keep their finances separate, while others share everything.

Whichever method you’ve chosen, when it comes to retirement saving, it’s worth planning together to ensure you’ve made the most of all the allowances and benefits offered to couples. Your golden years may ultimately be the best of your relationship if you understand each other’s future goals, needs and expectations.

SET YOUR BUDGET
The first step of planning for retirement is to look at how much money you’ll need to cover your outgoings. Start by analysing your current spending, and then identify where your spending might increase and decrease over the years. If you have different perspectives on how extravagant your lifestyle will be, it’s best to discuss this openly and early on as you’ll need to come to an agreement. One of you might be underestimating how much you’ll need or overestimating what you can realistically afford. Remember to plan for different circumstances. Hopefully, you’ll enjoy a decades-long retirement together, but your finances might look very different if one of you were to fall ill or die. It might be unpleasant to discuss but is essential to plan for.

ASSESS YOUR FINANCES
Next, look at the income you’ll both have from the State Pension and any private pensions. Set aside some time to trace pensions from previous workplaces that you might have forgotten about or not known an employer was paying into, as many people find extra cash that way. Make sure you understand all of your options for withdrawing your pensions, as the amount you get back from your pension depends, in part, on which option you choose. Consider, for example, whether you want to take a tax-free lump sum of up to 25% of your pension savings at the start of your retirement, and how best you could use that. If you have any debts or savings you haven’t mentioned to your partner, it would be wise to open up about these now.

TOP UP YOUR SAVINGS
If your existing pension savings won’t provide the income you think you’ll need, look at ways to address the shortfall. Could you make some lifestyle changes now to save more for later? If one or both of you have less than 35 years on your National Insurance record, you can make voluntary contributions to receive more State Pension.  It’s worth obtaining professional financial advice about using both of your pension allowances, and whose pension it is more sensible to contribute to. You both have an ‘annual allowance’, which is £40,000 in the 2021/22 tax year, or 100% of your income if you earn less than £40,000.

NEED HELP WITH YOUR RETIREMENT PLAN?
It’s important to carry out any financial planning exercise together, holistically, as a couple. If you don’t fully understand your options or want to boost your pension savings, speak to Fish Saltus to discuss your circumstances.

A PENSION IS A LONG-TERM INVESTMENT NOT NORMALLY ACCESSIBLE UNTIL AGE 55 (57 FROM APRIL 2028). THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE. YOUR PENSION INCOME COULD ALSO BE AFFECTED BY THE INTEREST RATES AT THE TIME YOU TAKE YOUR BENEFITS. THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE TAX ADVICE

Diverse Investment

Why cash may not be king

How much of your wealth do you currently hold in cash?

One paradox of the coronavirus (COVID-19) pandemic is that even as businesses have shut down and jobs have disappeared, some British households have on average been saving more money than they usually do, due to lower spending, according to new research[1].

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Happy Older Couple

Taking Control of Money Matters

Navigating the complex choices planning for the future brings.

When we talk about financial wellbeing, we refer to how you feel about the control you have over your financial future – and your relationship with money.  This includes your ability to respond to financial unpredictability and unexpected expenses.

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