The last year has seen HUGE volatility in the financial markets and things may stay this way for a little longer. However, in the last year, I can count on one hand the number of clients that called concerned. Hopefully, they have comfort in the fact that their money is invested for the right reasons, in the right things and that their investment risk perfectly matches their appetite for risk. However, this isn’t always the case for self-investors or those with a pension pot that is not professionally managed. So how do you prepare your investments and pensions so that you can have a good night’s sleep?
Have you got the right investment for your risk? If it is a work pension that you have, spend some time on the website looking at your investment options. There should be a booklet which shows you which ones are suitable for you.
Make sure that you are taking the right level of risk. When you are young, you want to be taking the most amount of risk that...
Work out what you will spend on holidays over the next 12 months.
Don’t forget to include weekends away, hen dos, and spa breaks. Make sure that your calculation is comprehensive and includes the cost of insurance, spending money, airport purchases etc.
Take a look back to previous years to work out what you have spent in past years to check that your figure is accurate.
When you know what you will spend in the next 12 months, divide this number by 12. This is the amount that you should then be set aside each month into a separate holiday account to prefund your fun.
So, for example, let's say you are going to spend 2,750 in total, you then need to save 229.17 each month. You could use a regular saver that allows withdrawals for holiday account.
We all need a financial safety net. Ideally this should be 3-6 months’ worth of outgoings. This money is there to protect you should things not go financially to plan. The safety net stops you having to tap into your investments at times when the markets mean that it is not a good time. Emergency cash buffers should be kept in an easy access cash buffer. Here are the top accounts for you to consider.
If you are still building up your emergency fund you can currently get a better rate with a regular saver account. These are accounts that are designed for you to pay in regularly every month. To get access to the best rate, you will need to already have an account with the bank.
Amy, a 32-year-old accountant looked like she was living her best life. She rented a fabulous apartment in a trendy part of the city, was going out for drinks, endless brunches, giving herself little shopping treats here and there, mini weekends away with friends and ubering all around town.
On Instagram anyone would think she was living the dream. But there was a secret looming over her which she knew she would soon have to face. After she didn’t get the pay rise she had expected at a job performance review, it became clear that now was the time. She took out her credit card statements - yes, all of them - and faced the cold hard truth.
“I saw the debt and was shocked. I was in $20,000 of credit card debt and, apart from superannuation, I had almost no assets (I was renting, had less than $1k in savings, no car and no investments), I knew I had to make a massive change”, Amy said.
Prior to that moment Amy had always taken a more relaxed approach to her...
According to David Bach, if you have an income, the answer is yes.
After a chance meeting with a couple who were ready to retire in their early fifties despite having an average income, Bach was inspired to learn the secrets to securing your future while still paying for your present. He shares his findings in The Automatic Millionaire.
This book is one of the most popular financial books in recent history and spent 31 weeks as a best seller thanks to its one-step program to achieve lasting wealth.
The Automatic Millionaire is an easy to follow guide to setting up your finances so you can make the most of your income, secure your wealth and change your life.
“A latte spurned is a fortune earned.”
“Remember, inspiration unused is merely entertainment. To get new results, you need to take new actions.”
“Money is not an end in itself. It is merely a tool to help us achieve some particular goal. If the way we handle our money conflicts with...
Doing your Christmas shopping online this year?
Most likely considering we aren't allowed to go to the shops.
When you're shopping online this year remember to use a cashback site!
A cashback website is a type of reward website that pays you a percent of money spent (yes free money back into your cashback account). #ChaChing
The sites have links to a huge range of retailers from everything from Apple to Lululemon , Expedia to Amazon it's all there!
They are free to sign up to and you can get anything from 3-20% cash back!
Here are two of our favourites.
This is a question that I get asked all the time. It is so important that you understand the difference to make sure that you are properly covered.
Income protection protects your monthly income. This means that if you're not able to work and therefore earn because of illness or injury then the policy will payout in line with the contract. Before you sign up for an Income Protection plan, it is important to check what you already have at work. If you already have covered at work, a personal plan may not payout at the same time.
A personal Income Protection plan will pay out a monthly tax-free amount until you are well enough to return to work or you reach the end of the policy. I link a client’s plan to their retirement date.
An Income Protection plan also has a deferred period. You can opt for 4, 13,26 and 52 weeks deferred periods. This is the time between getting sign and after which a policy will pay out, So for example if I am stick...
So are trusts just for rich kids? In short no! Trusts are just a way for you to give something to someone without giving them complete control over it.
In my day job as a Financial Advisor the most common way that I use trusts is when I set up a life assurance policy. I am always surprised by how many polices are not written into trust – it is rumoured that less than 20% of policies in the UK are!
All it is, is an extra form to fill out when you set up your life policy and most importantly, often you can get templates from the provider meaning that it is free to do too.
I think having had a background in finance and studied finance at university for four years gave us a good foundation when it comes to money. We've always been quite tight on our cash flow.
When starting a company, it's really important to have a close eye on what is coming in and going out so we're quite tight on our relationship with money. We are definitely not big spenders.
On the one hand side, being wealthy is about being able to do what you love and what you want to do. For example, going on holiday, buying clothes or new furniture. But on the other hand, having a good life is a nice evening with friends and being close to your family. My relationship with my twin sister makes me really wealthy! We're each other's best friends and I think it's definitely a cheeky answer but I think that's also an example of being very wealthy.
I don't really splurge on...