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 increasing focus surrounding saving for the future, it is hard to blame those who feel intimidated by managing their finances.
How much should I be contributing to my pension? How much money will I need to retire? Am I paying too much tax? What would happen if I was unable to work due to injury or illness? These are all extremely important questions and 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 find out how we can help you feel in control of your finances once again.
Utilising your tax allowances
No one wants to pay more tax than they need to, but the UK tax system is significantly complex. Too complex even for some in the finance industry! While most of the rules are designed to take money away from us, some offer benefits and incentives. An example of this is the tax relief offered when contributing to your pension. Making the most of these opportunities can be extremely beneficial for 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 keep you up to date with the most tax-efficient ways to invest, save or spend your money. No matter how unique or complex your situation, we will provide the optimal solution to meet your financial objectives.
Plan for the future
‘Delayed gratification is defined as “the resistance to 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 cause of working professionals to favour short term spending over retirement 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 not only meet your short-term objectives but help you achieve your long-term dreams too. We will take time to understand what you want from your retirement and put together a detailed plan showing how you can 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, funds and what on earth is a bitcoin? Nowadays, social media is filled with adverts boasting outrageous guaranteed returns, leaving young people unsure of where to turn.
To make matters more complex, the market has experienced several challenges in recent times. There was the banking crisis of 2008, the uncertainty surrounding Brexit since 2016, and the world’s biggest pandemic for 100 years. It can be distressing for inexperienced investors during volatile market conditions as they 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 will recommend a unique investment path to suit your needs.
When it comes to 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 we never need 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 should something terrible happen. Whilst there is Government support in place, 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 of the household income. They have recently moved into a large family home and have 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 not enough to meet the repayments on the mortgage. The father is unable to work because he needs to care for his wife and the three children.
This is just one of many possible scenarios where financial protection would be hugely beneficial. If the mother in the above example had an income protection policy in place, 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 for you. 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
There are various ways in which we can help you as a working professional trying to balance short-term wants with long-term goals. Every single financial plan is unique because no two lives are the same. No matter what your situation is, we will tailor your plan to provide you with financial freedom. Client objectives are at the heart of what we do, so get in touch with us today and let us make your dreams a reality.
