July 30, 2020

How to check that you’re on track

The lockdown in general has motivated many people to think about the bigger picture, and about how making big changes such as changing career, moving house or retiring early could improve their wellbeing.

At the same time others are concerned about the financial impact of the pandemic – on the value of their pensions or investments, on their businesses profitability or employment.

The ‘season finale’ of our series looks at how we can model your financial planning to make sure it remains on track, and if not, what can be done to get you there.

We can help you understand what impact any changes you make might would have on your long-term financial future before you make them.

We can also measure what effect the current economic uncertainty is having on your long-term plans, and if you’re still on track.

Protection flexibility – financial protection against premature death or serious illness is often arranged on an ad hoc basis, not part of a measured strategy. By simulating different scenarios, we can identify how much financial protection you actually need – taking into account your existing protection provision, any liabilities you might have, your current lifestyle and longer-term financial plans.

Higher or lower? – how much investment risk you take with your pensions and investments is conventionally based upon how much risk you can tolerate. We take a different approach by identifying how much risk you need to make your financial plans work. This can often be quite different.

When is enough? – when can you afford to stop working and live the sort of lifestyle you want without running out of money? What impact has volatile markets had on your financial plans? How much do you need to earn to keep yourself on track if you were to go part-time? These are some of the common questions that can we can answer for you, giving you a much better understanding of where you are and what is possible.

What if? – if you’re worried about redundancy in the current climate, further market volatility, or the financial impact of serious illness we can help to model those scenarios for you too. We can then plan how to protect against such an eventuality, or identify what needs to be done in response.

On the bright side – it works the other way too! We can help you plan for the nicer things too. Simulating the affordability of that dream house move, that career change you have talked about for so long or that year out to travel the world (when that time comes). Modelling your financial plan helps you to understand what is possible.

Your financial plan is always flexible – its designed to ebb and flow in line with your own life changes. A bit like tacking a boat, adjustments and tweaks can be made which mean your plan is always on course to meet your objectives.

So if you’re wondering where to start when it comes to the big – or small – decisions please give us a call and we can take a look.

July 30, 2020