Power of a plan

Life doesn’t stand still, so your financial plans shouldn’t either

Power of a plan

Power of a plan

We know it’s impossible to predict the future, but we know that by putting in place a well thought through plan the future will look less daunting. Creating a financial plan helps you see the big picture and map out your financial future. When you have a financial plan, it’s easier to make financial decisions and stay on track to meet your goals.


Some may think the only people who need help planning their finances are people with debt, or those with investments and savings. The truth is everyone should have a plan to help when it comes to money. For this reason, we have put together some helpful tips in a range of different areas of finances that should form part of your plan.


When it comes to financial planning for your future, it’s important that you receive expert professional advice about all the options and income sources available to you. As your life progresses, there will be certain points where you’ll be thinking about making changes that relate to your finances, for example, getting a new job or deciding when to retire. Your unique circumstances will play a significant part in achieving your goals and financial planning requirements.


What are your goals?


Your financial goals should have a timeframe and be achievable. You may be dreaming of a comfortable retirement, but this is difficult to plan. This is why when it comes to retirement you need to have a robust strategy in please to achieve this.


Just like pension, we should be putting in time to create a well-defined plan for the rest of our financial goals.


Life events, investment performance and taxation all need to be taken into consideration to give a reviewable and detailed plan.


Tax planning and careful budgeting


The aim is to increase your cash flows by carefully monitoring your spending patterns and expenses.  Tax planning and careful budgeting can help you keep more of your hard-earned cash. An increase in cash flow will lead to an increase in capital and the option to consider further investments to improve your overall financial well-being.


Tax considerations are also important when considering financial planning. The assessment rates for Income Tax and Capital Gains Tax will be important factors in determining how much you should save to meet your future goals.


A valuable safety net to protect you and your family


Protection insurance can provide a valuable safety net for you or your family should you become ill or die. However, in some cases, you might find you are already covered in some way, either as part of your work benefits or through the state. Do you have enough life insurance, and do you have the right kind of policy for your situation? Do you have disability and long-term care insurance? Do you need this protection? Your financial plan should address all these issues.


A proper financial plan also considers your personal circumstances, objectives and risk tolerance. It acts as a guide in helping choose the right types of investment to fit your needs, personality, and goals. Annual reviews of your financial plan will help during this transition phase, so you know the different options you have for withdrawing a retirement income and what the results will be in terms of yield and future income.


Reduce the risk of running out of money in the future


When you retire, structuring your investments during this period will provide the flexibility to help if you decide you want to spend more in some years than others, for example, when planning to buy a car or go on a luxury holiday. By creating a financial plan based on these needs, you work out how much you will require to reduce the risk of running out of money – and to enjoy the later years of life.


 A better financial understanding can be achieved when measurable financial goals are set, the effects of decisions understood, and results reviewed. Giving you a whole new approach to your budget and improving control over your financial lifestyle.


Don’t let financial changes or emergencies throw you off track


Whether you want to fund your children’s university education, save for retirement, or buy your first house, most financial goals require periodic savings. The financial planning process will help you identify how much you will need to save for each of your goals. Sudden financial changes or emergencies could throw you off track, so it is good to have savings you can access quickly.


It goes without saying that your financial plans should not be static. There is little point in making a plan and never returning to it. You should expect to make alterations as life changes. It’s important to have a yearly review at the very least to check you are on track to meeting your goals.



This information has been prepared using all reasonable care.  It is not guaranteed as to its accuracy, and it is published solely for information purposes.  It is not to be construed as a solicitation or offer to buy or sell securities and does not in any way constitute investment advice.

Information based on our current understanding of taxation legislation and regulations.  Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down.  You may not get back the original amount invested.

Past performance is not a reliable indicator of future performance.

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