By Ellie Price
Financial Advisor
Blog: grovelyfinancial.co.uk
As we emerge from a lockdown period longer than most envisaged, many face uncertainty in their finances and a big impact on overall wellbeing.
To help look at finances and make plans:
Work out your budget of what you can save each month.
Determine when you might need to access savings – short term (for Christmas/emergency fund), medium (in the next five years) or long term (for retirement, a rainy day, for the children or grandchildren?) If short term access, consider keeping it as cash. Although value will not grow, neither will it fall, so expense can be met.
If the time is longer, consider potential investments. Over time, spending power of cash is eroded by inflation, even in the current low interest rate. I can assess your willingness and ability to take investment risks as well as bear any potential losses, and to find the right investments.
Future value of investments can fall as well as rise, and growth not guaranteed. If you cannot afford investment to lose value, the stock market may not be for you. Consider a tax wrapper (pension, ISA, investment bond etc.,) : no point putting all your savings into your pension if you need access to some before age 55, as your pension will not allow withdrawals any earlier. Tax efficiency is important, but pick the right wrapper. Benefits of the treatment of tax depend on individual circumstances and may be subject to change.
Don’t think of financial planning as ‘done and dusted’. Your needs, products available, and legislation (as we know only too well currently) and stock market values change quickly: having an ongoing review keeps control and up-to-date, whether house purchase, comfortable retirement or legacy for the children.
Any questions, finance related, call 01722 632456 for free initial discussion to help you make the most of your money.
Ellie Price ellie@grovelyfinancial.co.uk Grovely Financial Ltd, representative of Vision Independent Financial Planning Ltd authorised and regulated by the FCA; reference no. 487395. (See my blog grovelyfinancial.co.uk)