How to achieve financial security for you and your family
PUBLISHED: 16:09 23 July 2020 | UPDATED: 09:37 24 July 2020
The global pandemic has made us all consider what is most important to us, with the wellbeing of loved ones inevitably at the top of that list.
Ainsley Bowyer, a financial planner from Brewin Dolphin, offers some advice on how to build financial security for your family and achieve your future goals.
Q: What advice would you give to someone not sure where to start?
The first stage is to find out exactly what you have, whether this is a pension plan, savings, investments, or benefits provided through work. Then you need to think about your goals and what is important to you.
For a lot of people, basic planning will be around budgeting, building an emergency cash reserve and understanding what benefits would be paid from work if you were to fall ill or die unexpectedly. There are some great free resources on the Money Advice Service and the Pension Wise website for those approaching retirement.
However, for people who have built larger savings and investments, those with larger income, or those who have inherited money, engaging with a financial planner can help to ensure they are being as tax efficient with their plans as possible.
Q: How can I protect the future of my loved ones?
The key is to make sure that your family – or your business – can cope if you fall ill or die, although often it is something that can too easily be put to one side.
There may be benefits provided by an employer which can help, but if not or if these aren’t enough, plans can be put in place to give people peace of mind that no matter what happens, money won’t be a concern for their family. This is not just about insurance plans – it’s a wider conversation about someone’s overall affairs, their wills, powers of attorney, pensions and other wealth.
Q: You mentioned pensions, should we all be looking to start a pension?
If you are employed you should have a pension, unless you opt out. The reality is everyone should be saving for their retirement. Pensions remain one of the most tax efficient ways to save for retirement, but they can be misunderstood as the regulations often change and become more complicated.
Q: Should I start planning for my children?
Yes, if you can afford to do so. Start early and don’t be afraid to start small. With our Brewin Portfolio Service, for as little as £100 per month a parent can set up a secure Junior ISA online in a few simple steps. It’s also worth remembering that anyone can contribute to a Junior ISA, including grandparents, and with a child’s allowance now up to £9,000 each year, there is plenty of incentive to do so.
Q: Is now a good time to invest?
The global economy has endured plenty of adversity over the decades, but investing for the long term gives your money the greatest chance of growing in value.
I often find when meeting new people, they tell me their pensions or investments have not done very well. However, when we look into it it’s simply because of what they are invested in. Their values might have fallen over time because they have invested in the wrong fund, or perhaps they have neglected it, which is why it’s so important to review your investments regularly.
How Brewin Dolphin can help
Ainsley Bowyer is a financial planner for Brewin Dolphin with more than 15 years’ experience. Having grown up in East Anglia, he recently moved back with his family and now spends his time working with people approaching retirement or those with larger savings and income.
Your capital is at risk.
Tax allowances depends on your individual circumstances; therefore you should not rely on this information without seeking professional advice from a qualified tax advisor.
No investment is suitable in all cases and if you have any doubts as to an investment’s suitability then you should contact Brewin Dolphin.
This information is for illustrative purposes only and is not intended as investment advice.
Brewin Dolphin’s financial planning advisors can help you wherever you are on your journey, whether you want advice about retirement, you need help with wealth management, estate planning or other finance investments.
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