Build your financial plan around life’s big events
18 March 2021
As we roll out our WealthPlanTM financial planning proposition to more and more clients, we’ve had really positive feedback about how comprehensive the approach is. Many of you have been struck by how the process builds real and meaningful links between your financial life and your actual life.
One of the most enjoyable and interesting parts of the WealthPlanTM process is helping you to identify your financial goals – what purpose you have for your money in the future. We firmly believe that this is the only place to start, and not with pensions, investments and life assurance as these are merely tools to help you achieve your goals. So we need to identify the goals first.
Yes it’s enjoyable and interesting helping you to identify your goals… but it’s challenging too, because we want to get you thinking about what you want in life. Some people struggle with this a little, and when they do, we suggest that you start your thinking with life’s big events and how you want them to play out.
So when we talk about your financial goals, we’re not talking about some random figures such as, “My goal is to have €1,500,000 in my pension plan when I retire”. Because that doesn’t means a lot… Is it the right amount? Is it too much or is it not enough? It’s far more important to know what you want your money to do for you.
Think of life’s big events
While of course we can trace life events right back to birth, for the sake of financial planning we start from today and get you thinking about all of the big changes in your life in the future, and maybe what you want them to look like. We can then work out how much money you require to fund your desired future lifestyle. Some of the areas that we’ll get you thinking about might include the likes of,
- Marriage: This is usually but not exclusively with younger clients, where a future marriage will create a very significant financial change when you and your better half marry your fortunes together. This may result in new goals and lifestyle wishes in the future.
- Career: How do you see your career panning out? Are you likely to see significant future increases in your income… or are you thinking about shifting down in terms of work and willing to pay a financial price for doing so?
- Where you live: Do you want to stay where you are or are you dreaming of the trophy house? Or maybe moving to a smaller place that’s easier to manage?
- Children: Whether you have them or might be planning them, they are definitely an expense item! What are your plans around their education and other potentially costly aspects of their lives?
- “Stuff”: What do you want to own? Have you plans to buy a holiday home or maybe a boat? We’ll also ask about cars and how often you want to change them etc.
- Gifting: From middle age onwards, this comes onto the radar of lots of people, who want to gift money to children and grandkids, even just to give them a helping hand.
- Retirement: A significant financial event as the income tap turns off and it’s time to live off savings. What do you want your retirement to look like?
- Death: This could be your own death or the death of your spouse or parent. Each of these events could have a significant financial impact on your WealthPlanTM. We help you plan for these events to ensure you maximise the impact of your wealth and minimise that biggest drain of all on your wealth – tax. We also get you thinking about transferring your wealth effectively at the appropriate time.
- Lifestyle events: And then there are lots of other possible events – the world tour, winning the lotto or maybe a divorce – who knows? Whatever it might be, there will be a significant financial impact and we’ll help you plan for it.
We passionately believe that all of these potential events should be considered and planned for. Then you need the best financial guidance to help you achieve all that you want. Yes, you will need a solicitor when buying a house, or an accountant when selling your business. But because we focus on your financial picture for all of your life and not just a single point in time, your WealthPlanTM will enable you to plan for all eventualities. Mot importantly, your WealthPlanTM is a dynamic, living plan, not a static document. So as your life goes in unexpected and unplanned directions – which usually happens – these are brought through into the plan at our regular Progress Meetings, where we adapt the plan to your new circumstances.
This is why we start by getting you thinking about the events that are important in your life. And then we help you achieve them to the full. It’s time to start dreaming…
For more information, please contact your Invesco consultant or contact us via the details below.