Life changes all the time and these changes can have a significant impact on your financial situation.
Depending on the event, looking at the financial side of things may not be the top priority. However, it’s important to take the time to make sure that your arrangements continue to support whatever your new goals are to give you the best chance of achieving what you want.
Here are some of the events that occur and things to think about.
Buying a First Home
This is an exciting time, but can also be quite daunting. Given that it’s likely to be the biggest financial commitment you’ll ever make, having the right plans in place is essential.
A mortgage is an obvious consideration and in most cases an essential part of the process. Choosing the right option and getting the right advice is essential.
However, don’t lose sight of the goal – home ownership. Getting the right mortgage will help you buy your home, but being financially resilient will help make sure you get to keep it if something unexpected happens. Make sure your back up plans are robust.
Starting a Family
This is another time for joy and excitement which can come with added challenges and financial responsibilities.
It’s key to make sure that household income will remain sufficient to cover outgoings, especially considering the potential for additional costs and reduced pay through things like maternity leave.
This would be a good time to consider all of your financial arrangements, emergency funds and insurance plans to make sure they are fit for purpose.
Writing or reviewing your Will would also be a good idea.
Moving Home
Whether you plan to upsize or downsize, this is another good time to review your arrangements.
Wherever possible, it’s best to plan well in advance for moving home to get the right result.
Researching things like the value of your current home, your borrowing capacity and the type of home you would like to move to will make sure you are prepared in advance.
This will also be a good time to review insurance arrangements to make sure they remain fit for purpose and support your plans.
Changing Jobs
Career changes are an important time to review financial arrangements.
There are often changes to income. If there is an increase, it’s important to make sure that this income is protected and sustainable as it’s likely that you will adapt your lifestyle accordingly.
If income is reducing, it’s important to adjust your household expenses and this could mean reviewing all of your arrangements with a view to reducing costs. It’s also important to make sure you aren’t over insured and paying for anything unnecessary.
Employee benefits are also a consideration. Are you giving up any benefits or receiving new ones? Either way, you need to review this against any personal insurance plans you hold to make sure you are neither over or under insured.
Finally, make sure your pension contributions will stay on track for your planned retirement age. If your planned retirement age has changed, make sure this fits with your mortgage and insurance plans.
If you’ve gone from being employed to self employed, protecting your financial security, still provisioning for retirement and considering how this affects your mortgage and home ownership plans is essential.
Retirement
It’s never too early to start saving for retirement.
Although for some this may be a distant thought, it’s still important to a) start paying into a pension as soon as possible and b) monitor your pension to make sure you are on track.
Too often, people pay into a pension without thinking about how much it’s worth and whether it will be sufficient to support them in retirement.
If you’re nearing retirement or it’s becoming more of a priority, it’s important to get the right advice.
Making sure you are on track and making any adjustments as necessary is key to getting the lifestyle you want in retirement.
It could be that lifetime or retirement mortgages could help with you achieving your goals so make sure you explore all of the options available to you.
Protecting your Legacy
Whatever happens, having a will in place is one of the most important aspects of financial planning, yet it’s often overlooked.
Whether you’re writing your first Will or updating an existing one to reflect a change in circumstances, it’s important to have something in place so that everything you’ve worked hard for is left to the right people.
Navigating Unexpected Events
Unfortunately, everything doesn’t always go to plan in life.
There are unexpected events such as divorce, ill health or redundancy that can have a huge impact.
Some of these things you can provision for and others you can’t.
When planning, it’s important to consider all of the potential risks and have plans in place to mitigate them.
However, sometimes life isn’t as straightforward as that. Things can happen which you just couldn’t allow for.
If this happens, make sure you reach out and get the right advice. It’s easy to become overwhelmed and assume the worst. However, if you gather all of the information and facts that will allow you to make good informed decisions, this will help you take control of the situation and work towards the right outcome.
Financial Planning Matters
Each stage of life brings new opportunities and challenges. By taking a proactive approach to mortgage, insurance, and financial planning, you’ll be better prepared to achieve your goals and protect what matters most.
Please feel free to get in touch if you need advice and we’ll be happy to help.
**Please note, Will writing is not regulated by the Financial Conduct Authority. We only advise on Mortgages and Non-Investment Insurance Contracts. We work closely with Will Writers, Pension and Investment Advisers and other professionals who we can put you in touch with if you need any help in any areas outside the scope of our services.
