Financial Health Page

Start 2025 with a New Year’s wealth check

A yearly financial check-up is vital to ensuring your money works as effectively as possible. The beginning of 2025 offers an ideal opportunity to take stock of your financial health, setting the tone for a prosperous and secure year ahead.

Even if you have a strong financial plan, life rarely stands still. Changes such as a promotion, a new mortgage or a shift in family circumstances could mean your plan no longer fits your needs. Additionally, financial law and regulation updates might impact your investments or tax allowances, making it crucial to revisit your strategy. A New Year’s wealth check helps you stay on top of these changes and provides clarity and confidence in your decision making, preparing you for whatever lies ahead.

PORTFOLIOS VULNERABLE TO MARKET FLUCTUATIONS

A great deal can change over a year, and regular reviews are necessary for your investment portfolio to maintain its balance and effectiveness. Some investments could start underperforming due to market shifts or company-specific issues, while others may outperform expectations, presenting you with opportunities to take profits and reinvest strategically. Without attentive management, you risk missing these critical moments, which could compromise your portfolio’s overall performance.

Overexposure to specific companies, sectors or geographical markets can also introduce significant risks. A lack of diversification might leave your portfolio vulnerable to market fluctuations or economic downturns in focused areas. Regularly reviewing your investments ensures they remain appropriately diversified and continue to reflect your financial goals, risk tolerance and timelines for achieving them.

REVIEWING YOUR INSURANCE POLICIES

Insurance policies are another critical area in your New Year’s wealth check. These include cover for income protection, life insurance and critical illness. Regular reviews are vital, especially if your personal circumstances have changed. A pay rise, for instance, might require you to increase the income you are protecting. Similarly, a larger or smaller mortgage could mean adjusting your life insurance cover.

Keeping these policies up to date ensures that your family is financially protected if illness or misfortune strikes. It’s also worth checking whether you’re overpaying for certain types of cover. A professional review can help you balance adequate protection and cost efficiency.

PREPARING FOR A SECURE RETIREMENT

A New Year’s wealth check can highlight your readiness for a fulfilling and comfortable retirement. If your pension savings are falling short, now may be the time to address this gap. By using your pension Annual Allowance, you can maximise your tax relief.
In the tax year (2024/25), the standard allowance is £60,000 annually. This covers the amount you can pay into your defined contribution pensions and receive tax relief, including your contributions, your employer’s and anyone else who might pay in on your behalf. The benefit of this relief, combined with the effects of compounded investment growth, can significantly increase your retirement pot over time.

Additionally, the start of 2025 is an excellent opportunity to ensure you are taking advantage of other tax-efficient options. You can invest up to £20,000 annually in Individual Savings Accounts (ISAs) for tax-efficient growth and income. Junior ISAs allow families to invest £9,000 annually per child, which could build into a substantial fund for university or a first-home deposit. Using allowances like these, Capital Gains Tax exemptions and personal savings allowances can help you manage your wealth more efficiently.

TACKLING FAMILY AND FINANCIAL PRIORITIES

Balancing family priorities with long-term savings often feels like a juggling act. You might be saving for school fees, giving your children a financial boost onto the property ladder or ensuring you’re putting enough aside for your retirement. At the same time, you could support elderly relatives as their health declines, adding strain to your household budget.

Even with a healthy income, managing competing priorities can be challenging. That’s why a carefully constructed financial plan is crucial. It should address your current needs and adapt to them as they evolve over time, helping you maintain stability through life’s twists and turns.

WHY PROFESSIONAL ADVICE MATTERS

Many individuals find the intricacies of rebalancing investments, planning tax-efficient strategies and developing a resilient retirement fund
overwhelming. That’s where professional financial advisers come into play. We can tailor an individual plan around your unique circumstances, reviewing it regularly to ensure it remains aligned with your personal goals, changes in legislation and the economic climate.

Our professional guidance can make the difference between simply managing your finances and genuinely mastering them. With our advice, you will gain clarity on your financial options and the confidence to make informed decisions.

LOOKING TO TAKE CONTROL OF YOUR FINANCIAL FUTURE WITH A NEW YEAR’S WEALTH CHECK?

The start of 2025 presents the perfect opportunity to assess your financial health and put plans in motion to achieve your goals. Whether building your retirement fund, supporting your family or investing tax-efficiently, take the time to prioritise your financial wellbeing. For
tailored professional advice and a personalised financial review, contact us today.

Find Your Local Adviser

A yearly financial check-up is vital to ensuring your money works as effectively as possible. In our latest guide, we look at why the beginning of 2025 offers an ideal opportunity to take stock of your financial health, setting the tone for a prosperous and secure year ahead.

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Actionable steps to ensure you’re progressing steadily toward financial stability and independence.

We make countless choices on our unique journeys through life that shape our future financial security and independence. Some of our most significant decisions revolve around finances – whether it’s planning for an early retirement, purchasing property or saving for a child’s education. These financial goals represent our personal priorities and direct the way we spend, save and invest our money.

However, financial goals are far from one size-fits-all. Just as every individual is unique, so too are their financial aspirations. Your goals may be a reflection of your specific needs, desires and ambitions. Without a clear financial compass, it’s easy to lose track of where your hard-earned money has gone. Setting financial goals is therefore a crucial step in steering yourself toward greater financial stability.

SETTING YOUR FINANCIAL FOUNDATION

Taking the time to craft clear and measurable financial objectives is the first step to paving a successful roadmap for the future. Breaking these objectives into small, manageable tasks can make even the most ambitious goals seem attainable. This approach enables you to progress step by step, providing both clarity and focus to your financial strategy.

Begin by assessing where you currently stand. Evaluate your income and expenses, the outstanding debts you carry and any recurring costs that might be quietly draining your resources. Honest self assessment is the foundation upon which financial progress is built.

CREATING SHORT-TERM AND LONG-TERM OBJECTIVES

Once you understand your existing financial position, it’s time to set meaningful goals. Divide your ambitions into short-term targets, such as paying off small debts or creating an emergency savings fund, and long-term aspirations, like saving for a dream holiday, a home deposit or retirement. By tailoring your goals to your circumstances, you’re laying the groundwork for success.

Breaking larger goals into achievable steps can help you maintain focus and motivation. Remember, each milestone you meet deserves recognition and celebration – small victories can remind you of the progress you’re making toward the bigger picture.

CRAFTING A DETAILED ACTION PLAN

With your goals clearly defined, you can now construct a well-thought-out plan to achieve them. Start by listing what you want to achieve and the reasons why these objectives are meaningful to you. Personal significance can serve as a powerful motivator as you work toward your aims.

The next step is to assess the tools and resources available to you. This stage might include reviewing your budget, exploring ways to manage debt more effectively or considering investment opportunities. Once you’ve evaluated your options, devise a step-by-step plan outlining how you intend to achieve your financial aspirations.

STAYING ON COURSE WITH REGULAR MONITORING

Financial goal-setting doesn’t end once a plan is in place. To ensure you remain on track, it’s vital to monitor your progress regularly. Set aside time once a month or quarter to review your achievements, identify obstacles and adjust your strategy if necessary. Treat your financial plan as a living document that evolves alongside your personal circumstances.

Remember, setbacks may occur, but they should not derail your determination. By maintaining focus and staying adaptable, you can continue moving forward and build the life you want for yourself and your loved ones.

ACHIEVING A BRIGHTER FINANCIAL FUTURE

Setting clear and attainable financial goals allows you to take control of your future with confidence. Breaking down your aspirations into actionable steps ensures you’re progressing steadily toward financial stability and independence. Whether it’s creating an emergency fund, paying off debt or planning for retirement, every small step you take brings you closer to achieving your dreams.

Find Your Local Adviser

Many times our advisers hear ‘I wish I had known that’, and it reinforces the real difference having a financial adviser onboard can make to both building your financial plan and making sure you stay on track through your lifetime.

If you’d like to discuss your financial future, and how a financial adviser can support you, please get in touch with our expert team:

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Key traits for successful wealth-building

Developing an investment strategy tailored to your goals

Committing to a financial plan is crucial for building wealth and achieving long-term financial goals. When you have a plan, you are more likely to stay focused on your objectives and take the necessary steps to reach them.

If you’d like to find out more about how to build your wealth, download our free guide here.