The second month of any year is usually a time for reflection. Are the New Year resolutions still going strong? Whether it’s physical or financial, we should all get in shape for 2020.
The weeks immediately after Christmas throw up so many challenges. It’s cold, getting back into the work routine is hard, and there’s pressure to keep on spending as companies entice us with big-ticket discounts.
Although many people will have committed to getting physically fit, how many take time to get their finances in shape?
By that, we don’t just mean reducing debt and finding the best credit card rates – although they are both vital to achieving a balanced overall financial picture.
We mean taking a comprehensive look at your financial position.
Have you mapped out longer-term goals? Are your existing savings and investments tax efficient? And have you got effective cover in place to protect your lifestyle?
Review your financial position
Revisiting your overall situation should be a priority. So many things change, and keeping abreast of investments, pension contributions, interest rates and life cover keeps you in charge.
When we sit down with clients we also focus on their life goals before we talk about money. Knowing where you want to be and how to get there helps to map out your investment journey.
Much depends on your stage of life, but potential home moves, supporting children through college or helping out with care fees for parents and relatives all need to be considered.
Staying financially fit means getting the best from your money. Keep on top of cashflow, look for the best mortgage rate and ensure that your pension contributions are working efficiently towards your objectives.
As the year progresses, the April deadline approaches. Make sure you utilise your annual ISA allowance. This is always a fantastic opportunity to grow savings tax-efficiently.
Of course, there is the Junior ISA for children and grandchildren. With the right planning, you can also establish strong foundations for them.
Crucially, check your life cover policies. Protecting your income means you are covered no matter what life throws at you.
Updating your plans, adjusting what you cover and for how long can change as you grow older alongside your evolving family situation.
These are just a few of the areas you should review to stay in shape.
Take advantage of good advice
Working closely with an independent financial adviser means you will always have access to the latest information about money and how it will affect you.
You will also benefit from regular reviews. This will allow you to assess, adapt and alter plans as your situation changes.
We think regular dialogue is important. We listen to our clients so we can offer them the best possible advice.
It’s never too early to start. We’re here to help you get in shape for 2020.
As ever, it’s important to be aware the value of investments or income from them can fall as well as rise. We’re here to help you make informed decisions.
Call us on 0808 1234 321 or email firstname.lastname@example.org to arrange your financial fitness assessment. * Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire and the surrounding area, but not limited to the region.