What happens next? 3 of your most common advice riddles solved

Last month you might have read ‘5 reasons why people come to us for advice’ in which we looked at some of the most common questions you have.

This month, keep reading for a closer look at the answers to three of these questions, and what you should do next.

1. Not sure if you’ll have “enough”? A robust long-term plan can keep you on track to your dream retirement

One of your key financial goals will likely be securing your dream retirement lifestyle when you finish work. After a long career, this is only right.

But the process begins much earlier than your retirement date, and ideally as early as possible.

The sooner you sit down to think about the type of retirement you want the better. This gives you the longest possible time to put a plan in place to help you get there. Plus, you’ll have the greatest chance of achieving your dream.

When you work with Jane Smith Financial Planning, we’ll provide you with your personal Life Roadmap.

Your Life Roadmap is step two of a four-step planning approach that begins with getting to know you.

That’s why we use our initial, free consultation to do just that. You tell us about your lifestyle, your aspirations and goals, and any worries you have. We then use this information to adopt an approach that is right for you.

By evaluating your financial circumstances now and the position you’d like to get to in the future, we can build your Life Roadmap Report.

By referring back to, and reviewing this regularly, you’ll always feel in control of your finances and have confidence that you’ll have “enough” when your retirement date arrives.

2. Looking to re-engage with your investments? A diversified and risk-managed portfolio puts you firmly in control

Financial planning empowers you to think about, and then achieve, your goals. It does this by putting you in control and giving you confidence in your future.

Engaging with your investments might be new territory but it’s a crucial part of your Life Roadmap.

You’ll need to think about the time frame for your goals, your attitude to risk, and your capacity for loss. These all play a huge role in the plan we put in place for you.

Once we understand your risk profile, we can build a portfolio that aligns with you. We’ll do this using diversification to spread risk.

Your portfolio will include a mixture of asset classes (including equities and bonds), allocated according to your individual needs. We’ll also diversify across industries, sectors, and geographic locations.

It means that a drop in one area or sector will hopefully be balanced by a rise in another.

And, by regularly reviewing your allocation, we can ensure your portfolio always aligns with your profile, regardless of market movements or your changing priorities.

3. Worried about the wealth you’ll pass on? Tax-efficient estate planning means there’ll be no nasty surprises

As you likely read last month, planning how to pass on your wealth might seem like a later-life concern but, in reality, it should be part of your plans and budgeting from the off.

We can help you decide when and how you leave a legacy for your loved ones.

You might opt for giving while living. This can lower the value of your estate for Inheritance Tax (IHT) calculations and be tax-efficient in their own right too, thanks to certain HMRC exemptions:

  • Your annual gifting exemption allows you to gift £3,000 tax-free in 2023/24.
  • You can also provide wedding or civil partnership gifts of up to £5,000 for your child or £2,500 for a grandchild.
  • Regular gifts made out of surplus income can also be made tax-free as long as certain conditions are met.

We can help you to understand these exemptions and factor them into your budgeting and long-term plans.

We can also help you to manage your pension wealth. This is important because unused pension funds can be passed on to loved ones tax-free in some cases.

Finally, we can help you to think about the inheritance you’d like to leave on death and the potential IHT liability you might leave behind.

Making use of allowances, trusts, and sometimes complex pension rules can ensure your money goes exactly where you want it to go. You’ll also have peace of mind that your loved ones won’t be left dealing with the stress of a huge tax bill.

Get in touch

If you’d like more information about the answers to the questions you have, or you’d like to discuss any other aspect of your long-term financial plan, speak to us now. Please contact us on info@janesmithfinancial.com or call 01234 713131.

Please note

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.

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