In his latest column for Altrincham Today, Jason Moss, an Altrincham-based Independent Financial Adviser (IFA) at Harvest Associates, explains why having the correct form of financial protection in place can give huge satisfaction and peace of mind.
If you can answer yes to the following questions, then you are doing better than most:
- Do you have a will and a lasting power of attorney in place?
- Do you have sufficient funds to cover loss of income?
- Could you repay any debts if a main earner in the household died?
- Do you know what happens to your spouse/partner’s pension(s) after their death?
This time of year, I like to reflect with loved ones and look back at fond memories of times spent together.
For some, this time of year can often be a reminder of the hard times for those who have experienced their worlds shattering through lack of planning for a worst-case scenario.
I recommend that everyone has a will and a lasting power of attorney (LPA) in place. According to Canada Life, 51% of UK adults do not have a will, and an LPA is something that could be needed far sooner than you expect.
Were you not to be able to make decisions for yourself through injury or ill health, LPAs allow you to appoint trusted individuals to make decisions regarding your health and financial affairs.
Everybody should have an emergency fund in place to cover any unforeseen expenditure, such as short-term loss of income. Ensure you have at least six months’ worth of expenditure earmarked in an easily accessible account.
For many, having the correct form of financial protection in place (life, critical illness cover, income protection) gives huge satisfaction and peace of mind in knowing that in the event of the unimaginable you and/or your dependents will be ok.
Affordability is a critical part of your financial plan but is your plan dependent on a loved one’s pension arrangements?
If so, it’s important to understand whether these benefits still exist following their death. Some pensions remain in their entirety, and some will have a reduced income.
In the recent budget, you may have noticed that pensions are to be brought into the estate and be subject to inheritance tax from 2027 (subject to legislation), a huge change that will impact many readers.
A good financial plan doesn’t just help you plan for living your best life, it also helps protect your loved ones in the event of a worst-case scenario.
There will never be a ‘right time’ to talk about worst case scenarios, so don’t wait. I challenge you to have the tough conversations with your loved ones to understand the impact if things don’t go to plan.
To contact Jason or for more information, email jmoss@harvestassociates.co.uk, call 07703 341 285 or visit harvestassociates.co.uk
Harvest Associates is authorised and regulated by the Financial Conduct Authority. FCA registered number is 629749. The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
