You know not to miss your annual MOT test, but when it comes to finances, doesn’t it make sense to perform a similar process with your wealth? It’s best to regularly review your financial plan, but a special “mid-life MOT” is a great way to assess your money and other assets to ensure your wealth is organised and that you’re on track to achieve your long-term goals. Learn more about the key areas of your wealth to consider during a mid-life MOT by reading on.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Key areas to consider
There are five key areas of your wealth to consider when giving your money a comprehensive mid-life MOT. Here we provide an overview of these areas, but for an in-depth exploration, check out the official guide.
How to manage your money
The first step in your mid-life financial check up is to take stock of your current day-to-day spending and what you’re currently doing to reach your financial goals. Be sure to take a close look at your budget and how much you’re saving. Don’t forget to have a plan for dealing with your debt and managing your mortgage.
How to secure your wealth against unforeseen circumstances
It’s crucial that you have a plan to deal with unexpected events cropping up in your life. You’ll need to understand the importance of having an emergency fund for short-term legacy
setbacks and wealth protection policies for sudden loss of income. Securing your wealth is essential for achieving financial stability.
What to think about when growing your wealth
After you have a clear understanding of your current financial situation and how to secure your wealth for the future, it’s time to explore how you can save and invest your money tax-efficiently to sustainably grow your money over time. Don’t forget about pension contributions. A solid pension pot can often make or break one’s retirement plans.
Tips to help you prepare for your future
The whole reason why you work so hard in the present is to support your future. Take the time to ensure you’ve set clear goals for the future and your current plan is helping you get to your desired retirement lifestyle. Know your options for drawing income later in life so you can plan accordingly. And even if it’s not a pleasant topic, don’t forget to think about later-life care and how to cover those expenses.
How you can leave a legacy for your family
Last, but certainly not least, estate planning and figuring out your legacy should be included in your mid-life MOT. Make sure you create a will, put a lasting Power of Attorney in place, and have a plan in place for dealing with Inheritance Tax.
Work with an expert
Unless you were an expert, you wouldn’t attempt to do your own MOT test. Treat your finances the same way and enlist the help of an expert to assess your finances. If you’re ready to help with your financial plan, get in touch with your trusted financial adviser. Dental & Medical Financial Services can help with financial planning at every stage of life, so don’t forget to undergo your mid-life check up — get in contact to schedule a review today.