Usually, the start of a new year means a fresh start. With coronavirus still spreading, it might seem more difficult this year and you might feel demotivated to make change, but it’s important not to let that prevent you from taking a good look at your finances in the new year.
This does not constitute advice and advice should be sought in all instances before acting on it.
Not sure where to start?
There are two key areas you should focus on:
- Goals related to being prepared for anything unexpected that might come your way this year – COVID-wise or otherwise, and
- Where you want to be at the end of the year.
Wealth management
Wealth management – building and protecting your wealth – has grown in prominence after the last year of dealing with the pandemic. There has never been a better time to ensure the wealth you’ve worked so hard to build over the years is protected from any unexpected issues that may arise.
If you want to ensure your family is taken care of financially if something happens to you and you can no longer work, or if you pass away, securing income protection, critical illness cover, and/or life insurance is a no-brainer.
Taxing times
Taking advantage of the tax relief thresholds available and ensuring you’re maximising your tax savings can make a big impact. Using tax-wrapped pensions, Individual Savings Accounts (ISAs), and using all available allowances all help toward avoiding unnecessary tax burdens.
Setting goals
Just having goals will help you get started on the right path. However, knowing why you’re setting your goals will help you work towards them and stick with them.
First things first, review your budget and current financial habits to see what you’re working with and if there’s any easy fixes you can make.
Make sure your current savings plans are still working for you and if you can make any new investments. Pension and retirement planning should also be included in your review, along with taxes and allowances. Reviewing your estate plan and making plans for your legacy isn’t exactly a fun task, but it’s a crucial aspect of financial planning.
We can help you with your new year review
The beginning of the year is a perfect time to evaluate your current financial situation and existing goals. There are plenty of opportunities to change tactics or double down on things you’re already doing. But you need to stop and evaluate to make sure you have everything in place that will help you achieve your goals.
For a more in-depth look at how to make sure you start the new year off with the right financial plan and how that will help in the long-run, download the latest edition of ESMARTMONEY.
If you find the prospect of reviewing your finances to be daunting, the best thing you can do is to work with a trusted financial adviser. They can help you prioritise and put plans into place to help you feel secure with your finances for 2021 and beyond. Get in touch with us today.
Ready for a New Year Financial Review?
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Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.