A financial planning service for professionals
Trying to find the correct work-life balance is difficult enough without having financial pressures to deal with. Working professionals have a lot of “plates spinning”, such as career progression, raising a family and caring for parents. With an increasing focus on saving for the future, it is hard to blame those intimidated by managing their finances.
How much should I contribute to my pension? How much money will I need to retire? Am I paying too much tax? What would happen if I could not work due to injury or illness? These are all extremely important questions, and they are topics that are not taught at school or university.
This is where we come in. Financial Planning can take all the financial weight off your shoulders. Leave money worries to the professionals so you can focus on the other aspects of your busy life. Read on to learn how we can help you regain control of your finances.
Utilising your tax allowances
No one wants to pay more tax than needed, but the UK tax system is significantly complex. It’s too complex even for some in the finance industry! While most rules are designed to take money from us, some offer benefits and incentives. An example is the tax relief provided when contributing to your pension. Making the most of these opportunities can benefit your finances in the long run.
Not only are the tax rules complicated, but they are also constantly changing and evolving. Keeping up with these changes is time-consuming, but don’t worry, it is our job! We can update you on the most tax-efficient ways to invest, save or spend your money. No matter your situation’s uniqueness or complexity, we will provide the optimal solution to meet your financial objectives.
Plan for the future
Delayed gratification is “resisting the temptation of an immediate pleasure in the hope of obtaining a valuable and long-lasting reward in the long-term.” This is often the reason working professionals favour short-term spending over pension planning. Why put £20,000 into your pension to use in 30 years when you could buy a brand-new car and enjoy it right now? There is a balance to be found, and delaying retirement savings will only make it more painful further down the line.
Many do not realise this until it is too late and try to frantically save in the last few years of their working lives. This is unlikely to give you the retirement you desire. Again, this is where we can help. As your financial planners, we will give you the tools and knowledge to make informed decisions that meet your short-term objectives and help you achieve your long-term dreams. We will take time to understand what you want from your retirement and create a detailed plan showing how to get there.
Investment Experience
Let’s face it: the investing world is a minefield. To most people, it is filled with unnecessary jargon, conflicting opinions, and endless options. First-time investors often have no clue where to start. There are stocks, shares, bonds, gilts, premium bonds, and funds. What on earth is Bitcoin? Nowadays, social media is filled with adverts boasting outrageous guaranteed returns, leaving young people unsure where to turn.
To make matters more complex, the market has recently experienced several challenges: the 2008 banking crisis, the uncertainty surrounding Brexit since 2016, and the world’s biggest pandemic in 100 years. It can be distressing for inexperienced investors during volatile market conditions to see their money drop significantly in value.
We will take control of your investments and coach you through the most important aspects so that, over time, you gain confidence and the ability to manage your finances. We will have thorough discussions with you to gauge the level of risk you are comfortable with, how much you can afford to lose, and what you require to meet your life goals. Following these discussions, we recommend a unique investment path to suit your needs.
When selecting specific investments, we acknowledge that our expertise is not in this area. We are paid to be financial planners, not investment managers. Therefore, we outsource fund management to ensure industry experts look after your money.
Protection in case the worst happens
It is human nature to avoid considering or planning for traumatic events. We prefer to happily go about our lives, hoping never to face such an occurrence. However, in some cases, the potential consequences are too severe to ignore. Another common misconception is that the state will always be there to support you if something terrible happened. Government support is in place, but it is insufficient in almost every scenario.
An example of this is a married couple with three young children. The father doesn’t work to care for the children, and the mother is a high earner, providing all the household income. They recently moved into a large family home with a significant mortgage. Suddenly, the mother is diagnosed with a debilitating illness and is therefore unable to work. She can claim a basic level of income from the government, but it is not enough to meet the repayments on the mortgage. The father cannot work because he needs to care for his wife and the three children.
This is just one of many scenarios where financial protection would benefit greatly. If the mother in the above example had an income protection policy, she would still receive a large percentage of her salary until she returns to work.
At Consilium Asset Management, we will learn about your family and financial situation and advise on which type of financial protection is most necessary. As we are independent, we can access the entire market. Therefore, we will search the market and find the optimal quote for your desired policy. As your needs change, we will adapt your policies and ensure you are always protected if the worst happens.
Summary
We can help you, as a working professional, try to balance short-term wants with long-term goals in various ways. Every financial plan is unique because no two lives are the same. We will tailor your plan to provide financial freedom regardless of your situation. Client objectives are at the heart of what we do, so get in touch today and let us make your dreams a reality.
