Financial planning can be a confusing matter, particularly with the variables that must be considered. However, you are able to positively influence your financial situation in the long term by proactively concentrating on certain areas. As such we have outlined seven key areas which we believe should be considered when starting this process. For full access to the 7 Concepts of Financial Planning click here.
Concept 1 – You
Everyone is financially unique and financial planning needs to be tailored to you.
You are financially unique – how your assets have been accumulated, where they are held and what you want to do with them is unique to you. Your objectives, attitudes, preferences and timescales will also be unique.
Concept 1 - You
Concept 2 – How much
Understand how much money you need and whether you have enough.
Knowing the amount of assets you will need to meet your requirements, objectives and aspirations over the course of your lifetime and after you are deceased enables you to understand where you currently are in relation to this and how to plan accordingly.
Concept 2 - How much
Concept 3 – Time and expertise
How much time do you want to spend managing your assets and are they currently organised to reflect this?
Managing your assets/wealth takes time, knowledge and expertise. How much time you spend will be determined by where your assets are held and how involved you are and want to be in their management…
Concept 3 – Time and expertise
Concept 4 – Tax
Understanding how your various assets are taxed and whether these could be better organised to reduce the tax you pay.
Tax can have a significant impact on the value and longevity of your assets over time…
Concept 4 – Tax
Concept 5 – Assets
In what form are the assets that make up your wealth held and does this reflect your needs, attitudes and preferences.
How your assets are held and managed will determine the cost to you, the tax you pay…
Concept 5 – Assets
How are your financial plans impacted by your premature demise or illness?
You are at most risk during the period you are accumulating the level of assets you need…
Concept 6 - Protect
Concept 7 – Keep on track
Managing your finances, assets and financial planning is a continual process that takes into account changes in your life and the world around you.
Ensure you undertake regular reviews of your financial planning arrangements and…
For full access to the 7 Concepts of Financial Planning click here.
©Lucas Fettes & Partners (Financial Services) Ltd 2018.
