The start of 2022 is the perfect opportunity to review your savings and investments. Jillian Thomas, managing director of Renishaw-based Future Life Wealth Management, outlines the key financial considerations necessary to kickstart a truly prosperous new year…
Now’s the time to take control of your financial future.
Financial check-ups must take place at least annually – and personally, I can’t think of a better way to kickstart the new year than by getting to grips with your savings and investments.
As we live through these unprecedented times, increasing inflation will take a toll on how much we have to spend.
Consequently, it’s become imperative to make your money work as hard as possible.
Here are some key financial considerations to help you achieve just that…
Consider deposit rates…
Deposit rates have been at historically low levels since the financial crisis of 2008 – but that patently does not mean that investors should accept a real terms inflation-adjusted reduction in their value as the default position.
Financial planners have access to cash platforms which can provide higher rates of return than can be obtained from the well-known high street names.
Don’t overlook ESG investments…
ESG – which stands for environmental, social and governance – has become the new frontier of investment.
You don’t have to agree with some of the politics of the ESG advocates to take advantage of it.
Reduce capital gains tax…
Capital gains tax (CGT) is charged on the profits made when selling, gifting or transferring certain assets. There are lots of ways to mitigate CGT to ensure that more of your money goes towards your future – but it’s essential to file your HMRC returns at the right time.
Envisage your retirement…
Write down your ‘retirement vision statement’. This is a full and frank description of what you want your life to be like after you retire. You can use this document to identify what your interests and values are in life, set priorities and prepare for risks. If you’re not going to have sufficient income, then what actions do you need to take now to redress the balance?
Evaluate your state pension…
A starting point on this journey is knowing precisely how much state pension you’ll receive.
It’s easy to submit an online application for a state pension forecast – and you’ll quickly learn when you’ll receive it and whether there are any gaps requiring attention.
Maximise your private pension contributions…
Consider whether you want to increase your private pension contributions in 2022.
If you’ve found it no trouble to make contributions at your current rate, might it be worth paying a little more and adjusting the pensions input by inflation?
If you would like Jillian Thomas to plan your financial future ring 01246 435996 or email jill@wealthmanagement.uk.com Alternatively, visit wealthmanagement.uk.com
No individual investment advice is given, nor intended to be given in this article and liability will not be accepted in respect of any action you may take as a result of reading this article. If you are unsure you are urged to take independent investment advice.
