If you think you’re too young for financial planning, or if you believe you’ve left it too late, think again. No matter what stage you have reached in life, sound financial planning is very important. Financial planning is all about lifestyle. It’s about protecting the lifestyle your currently enjoy, for yourself and your loved ones; and it’s also about planning for the lifestyle you want to enjoy in the future. However, as you progress in life, your financial priorities changes as your circumstances change. That’s why you need to review your financial plan regularly to ensure that it still suits your needs.
Young, Free and Single
At this stage you are probably more interested in having fun and enjoying life than you are in financial planning. I totally agree that it’s very important to enjoy life and have fun with your friends. However, small financial planning steps taken at this time will make a huge difference to you in the future.
Key financial areas for you include:
- Saving regularly
- Starting a pension
- Insuring your income
- Critical illness cover
- Mortgage advice
Young Couple – No Children
If you are living with someone and you haven’t yet started a family, this is one of the more affluent stages in your life, when you have two incomes but only one home and no kids! It’s important, while you are in this position, that you get started with your financial planning. Later on, if you decide to have children, there may not be much spare money left over for saving. All the key areas of financial planning which apply to the ‘Young, Free and Single’ also apply to you!
Couple with Children
This is when you need to get really serious about your financial planning. You have a responsibility to protect not only your own lifestyle but also that of your loved ones.
Key priorities include:
- Life insurance – vitally important!
- Critical illness cover
- Education fees planning
- Income Protection
- Retirement planning
Empty Nesters
So your children have all grown up and fled the nest? Now is the time to really concentrate on your own financial planning – especially on your retirement planning, making up any shortfalls in your pension provision. Life is not a rehearsal. It is important that you plan to be financially independent sooner rather than later so that you can choose to give up work and start doing all the things you want to do while you’re still young and fit enough to be able to enjoy them.
Key areas of concern include:
- Retirement planning
- Investment advice
- Inheritance tax (IHT) planning
- Paying off your mortgage
Retirement
As you reach retirement you have some major decisions to make regarding your pension options and it is critically important that you seek independent financial advice, even if you have never consulted a financial adviser before.
Key areas of financial planning include:
- Pension income options
- Investment advice
- Wealth management
- Estate/IHT planning
- Equity release
The Elderly
As you become older and more frail you may have to make plans on how to fund long term care should you need it. Not all financial advisers are qualified to give advice in this very specialised area.
Key areas of financial planning include:
- Wealth management
- Investment advice
- Pension advice – alternatively secured pension or annuity purchase
- Estate/IHT planning
- Long term care fees planning
So, you see, you are never too young or too old to start financial planning and people of any age can benefit from consulting an expert independent financial adviser.