Now the year is at an end you should consider reviewing your yearly finances. Take a look at your household accounts over the past year and take stock.
It is important to do this each year but especially if you have an ageing relative to support. Did everything go to plan? And how would you do things differently next year? The same goes for your relative’s finances – take a look through their records and determine if any changes need to be made.
Here are some questions that Age Space Sussex’s Finance Partner and Retirement & Later Life Advice Specialist, Kieron Robertson of Concierge Wealth Management, recommend you ask yourself to improve your finances for next year.
- Has anything in your financial situation changed since your last review? If it has you should review your finances, if you haven’t already, to explore any impact these changes may have or will have and then take appropriate action to amend any future plans.
- Has your income increased or decreased at all over the year? In the case of the latter, you should probably decrease your expenditure next year as a result. In terms of expenditure, are there areas you may be able to make savings in. i.e. mortgage (if applicable), changing utility companies, cutting unnecessary spending etc.
- If you or your relative have any assets or liabilities are they moving in the right direction, with your assets increasing and liabilities decreasing?
- What will happen to your finances if you became unexpectedly ill and were unable to work for a prolonged period? Would your finances provide the cover needed to meet the costs of living if you were out of work for three months or more? If you don’t have those protections in place you should prioritise this in 2019, especially if you have an elderly relative who is dependent on you.
- Have you made provision for any Long-Term Care? Do you understand the potential cost of your relative, or even yourself, possibly requiring care in future?
- In terms of savings, do you have a suitable emergency fund? Do you have access to funds to meet your planned expenditure that would not be met by your income alone over the next 3-5 years?
- Are your pensions and any investments still in line with your objectives? Do you want to take more or fewer risks with your investments next year and, in the case of the former, are you prepared for the increased volatility that comes with increased risk or, in the case of the latter, are you prepared to perhaps forego potential gains?
- Have you utilised your allowances – ISA, Pension, CGT, IHT etc – for this year? If not, try not to leave it until April before you do!
- Do you have a will or a Lasting Power of Attorney? If you have, you should think about anything that may have changed, in your life or finances, since they were written and consider if amendments need to be made. If not, you should look into the risks of what could happen in the event of not having a will or LPA.
- Is this too complicated to do by myself? If finance isn’t your thing and all this sounds a bit too much for you, then speak to a local friendly Independent Financial Adviser (ideally one who is a member of SoLLA) who will have the appropriate level of experience and qualifications to be able to lighten your load and make everything easier to understand.
Articles on this website are offered only for general informational and educational purposes. They are not offered as and do not constitute financial advice. You should not act or rely on any information contained in this website without first seeking advice from a professional.
If you’d like any more financial help or advice, please contact Kieron at Concierge Wealth Management via email: firstname.lastname@example.org or telephone 07840 245 968, or visit www.conciergewealth.co.uk