Planning for your pension is one of the most important financial decisions you'll make in your lifetime. It’s your future, your financial security, and your peace of mind at stake. However, many individuals, even those in Winchester, fall into common traps that can negatively impact their pension plans. At Voyage Financial Planning, we've encountered these issues many times. With the right advice, we can help you avoid them.

Starting Too Late

One of the most frequent mistakes people make is waiting too long to start saving for their pension. Whether due to a lack of awareness or an assumption that there's plenty of time to catch up, this delay can have serious consequences. The later you start saving, the less time your money has to grow. Compound interest, which is the cornerstone of pension growth, works best over long periods.

By starting early, even small contributions can significantly impact your retirement fund. At Voyage Financial Planning, we help Winchester residents understand the importance of early action and work with them to create a realistic savings plan.

Underestimating Retirement Costs

Many people underestimate how much they’ll need during retirement. It’s easy to assume that you'll spend less once you retire, but for many, this isn’t the case. In fact, retirement can be an active phase of life with more time to travel, pursue hobbies, or support family members. Healthcare costs may also increase, and inflation could erode your savings if they aren't properly protected.

It’s essential to assess what your ideal retirement looks like and plan for it accordingly. With our tailored pension planning services at Voyage Financial Planning, we help clients realistically calculate future expenses and align their contributions to meet those goals.

Not Taking Advantage of Employer Contributions

A huge benefit that many employees overlook is their employer's pension contributions. Most employers are required to offer a workplace pension, and many will match or exceed your contributions up to a certain limit. This is essentially ‘free money’ that can boost your pension pot significantly.

Failing to maximise this opportunity is a common mistake. At Voyage Financial Planning, we encourage our clients to take full advantage of employer schemes and work out the best strategies to leverage these benefits effectively.

Neglecting Pension Reviews

A pension is not something you can ‘set and forget.’ Your financial circumstances, market conditions, and legislation around pensions are constantly changing. Failing to review your pension regularly is another common error. For instance, you might have old pensions with higher fees or poor investment performance that could be consolidated into better options.

Pension reviews allow you to make adjustments to ensure you're on track for your retirement goals. At Voyage Financial Planning, we offer Winchester residents pension review services, ensuring your pension remains competitive, diversified, and aligned with your future needs.

Not Understanding Pension Tax Rules

Pension tax relief can be a powerful tool for growing your pension, but it’s also an area where many make mistakes. There are annual and lifetime allowances to consider, and exceeding them can result in significant tax penalties. On the other hand, failing to claim the full tax relief available to you could leave valuable money on the table.

Navigating pension tax rules can be complex, which is why our local team at Voyage Financial Planning is here to guide Winchester residents through these regulations, ensuring you maximise the benefits while avoiding costly errors.

Failing to Plan for Early Retirement

Many people dream of retiring early, but few plan for the financial implications of doing so. Retiring even a few years earlier than expected can significantly reduce the size of your pension pot and increase the amount of time you'll need your savings to last. Without proper planning, early retirement can be a financial strain.

At Voyage Financial Planning, we help Winchester clients understand the financial trade-offs of early retirement. By creating flexible pension plans that accommodate different retirement timelines, we ensure our clients are prepared for every possibility.

The Importance of Local Advice in Winchester

At Voyage Financial Planning, we understand that Winchester residents face unique challenges and opportunities when it comes to pension planning. Local knowledge is invaluable, whether it's understanding the specifics of local employment benefits or navigating regional financial services.

We offer personalised pension advice in Winchester, tailored to your specific needs and financial circumstances. By working closely with our clients, we can help you avoid these common pension planning mistakes and build a strategy that supports your long-term goals.

If you’re ready to take control of your pension, avoid common mistakes, and start planning for your future, contact us today. Our experienced financial advisers are here to help you navigate the complexities of pension planning and achieve your retirement goals.

Let’s start your journey towards financial independence together!

Selecting the right financial planner is a critical decision that can significantly impact your financial future. With numerous firms in Winchester offering a variety of services, how do you determine which is the best fit for you? This guide will help you assess the key factors when choosing a financial advisor and why Voyage Financial Planning stands out as a strong choice for Winchester residents.

Independence and Impartiality

One of the most important aspects to look for in a financial advisor is independence. Independent Financial Advisers (IFAs) are not tied to specific products or financial institutions, which means they can offer impartial advice tailored solely to your needs. At Voyage Financial Planning, we provide truly independent advice, meaning our recommendations are based purely on your financial goals, without any pressure from third-party providers. This ensures that every decision we help you make is in your best interest.

Local Knowledge and Expertise

When it comes to financial planning, having local knowledge can provide significant advantages. Advisors who understand the nuances of the Winchester and Hampshire area can offer more relevant advice, particularly when it comes to property investments or tax planning. As a Winchester-based firm, Voyage Financial Planning leverages local insights and decades of experience to provide personalised advice that is both relevant and effective for residents of the area. Whether you’re navigating the local property market or planning for retirement, our knowledge of the region can help guide you more effectively.

Please note: tax planning is not regulated by the Financial Conduct Authority (FCA).

Comprehensive Range of Services

A key criterion for selecting a financial planner should be the range of services they offer. Your financial situation may require assistance in multiple areas, such as retirement planning, investment management, mortgage advice, or inheritance tax planning. Voyage Financial Planning offers a full spectrum of services, ensuring that we can address all aspects of your financial life under one roof. Our services include:

• Retirement and Pension Planning: Maximise your retirement savings and create a strategy that allows you to live comfortably in your later years.
• Investment Advice: Receive guidance on building a diversified investment portfolio that aligns with your risk tolerance and long-term goals.
• Mortgage Advisory Services: Whether you’re a first-time buyer or considering equity release, we offer tailored mortgage advice.
• Inheritance Tax Planning: Ensure your estate is passed on efficiently while minimising tax liabilities.

By offering these services in-house, we ensure that every element of your financial plan is seamlessly integrated and tailored to your unique situation.

Personalised, Bespoke Financial Planning

Financial planning is not a one-size-fits-all process. Each individual has unique circumstances, financial goals, and life situations. A good financial adviser will take the time to understand your personal situation and design a bespoke strategy that meets your specific needs. At Voyage Financial Planning, our process starts by getting to know you. We assess your current financial situation, future goals, and risk tolerance before offering bespoke financial strategies tailored to your short-, medium-, and long-term aspirations. Whether you are planning for a comfortable retirement, managing investments, or considering property investments, our personalised approach ensures that every recommendation is built around your needs.

Ongoing Support and Long-Term Relationship

Financial planning is not a one-off task—it requires ongoing support and reviews as your circumstances change over time. Whether it’s changes in the market or shifts in your personal situation, your financial plan needs to be flexible and adaptable. At Voyage Financial Planning, we build long-term relationships with our clients. Our advisors are committed to providing ongoing support, regularly reviewing your financial plan, and making adjustments as necessary to keep you on track towards your goals.

A Commitment to the Community

Choosing a financial planner who is actively involved in the local community can also be a sign of a trustworthy and reliable firm. At Voyage Financial Planning, we are proud to support local initiatives and charities, demonstrating our commitment not just to our clients but to the wider community as well. We believe that financial success is not just about numbers; it’s about helping our clients achieve peace of mind and security for the future.

Why Choose Voyage Financial Planning?

At Voyage Financial Planning, we believe in guiding you through every stage of your financial journey with integrity, expertise, and personalised care. Here’s why we are the right choice for residents of Winchester:

• Independent and Unbiased: Our impartial advice is tailored specifically to your needs.
• Comprehensive Services: From retirement planning to mortgages and investment management, we cover all areas of your financial wellbeing.
• Local Expertise: Based in Winchester, we offer relevant, localised advice that is specific to the Hampshire area.
• Experienced Advisors: With over 20 years of industry experience, we are well-equipped to handle even the most complex financial situations.
• Bespoke Financial Strategies: Every recommendation we provide is personalised to meet your specific financial goals and circumstances.

Take the First Step Towards Financial Security

Your financial future is too important to leave to chance. At Voyage Financial Planning, we are committed to helping you achieve peace of mind and financial security. Whether you need help with retirement planning, investments, or securing a mortgage, our expert advisors are here to guide you every step of the way.

Visit our website at Voyage Financial Planning to schedule a consultation and begin your journey towards a secure financial future today!

Navigating the home buying process can be a daunting journey, filled with numerous decisions and complex paperwork. At Voyage Financial Planning, we understand the intricacies involved and are here to make your experience as smooth as possible. Our team of expert mortgage advisors in Winchester is dedicated to guiding you through every step of your home buying journey.

What is a Mortgage Advisor?

A mortgage advisor, also known as a mortgage broker, is a professional who specialises in providing expert advice on mortgage products and services. They play a crucial role in helping clients find the best mortgage deals tailored to their individual circumstances. Mortgage advisors assess your financial situation, recommend suitable mortgage options, and assist with the application process, making the path to homeownership much less stressful.

How Can a Mortgage Advisor Help You?

Expert Guidance- At Voyage Financial Planning, our mortgage advisors offer personalised advice based on your unique financial situation and goals. Whether you're a first-time buyer or looking to remortgage, our advisors will provide you with clear, concise, and jargon-free guidance, ensuring you understand all your options.

Simplifying the Application Process- Applying for a mortgage can be a complex and time-consuming process. Our mortgage advisors handle the entire application process on your behalf, from gathering necessary documentation to liaising with lenders. This not only saves you time and effort but also increases the likelihood of a successful application.

Tailored Recommendations- We take the time to understand your specific needs and financial circumstances. Whether you're interested in a residential mortgage, a buy-to-let mortgage, a let-to-buy mortgage, or a company mortgage, our advisors will tailor their recommendations to match your objectives. This personalised approach ensures that you get the most suitable mortgage product for your situation.

Types of Mortgages We Offer

At Voyage Financial Planning, we offer a variety of mortgage options to cater to different needs. Here’s a closer look at the types of mortgages we can assist you with:

Residential Mortgage- A residential mortgage is designed for individuals or families purchasing a home to live in. Our advisors will help you find the best mortgage deal, considering factors like interest rates, repayment terms, and your long-term financial plans. We'll ensure you have all the information you need to make a confident decision.

Buy-To-Let Mortgage- If you're looking to invest in property to rent out, a buy-to-let mortgage is the right choice. These mortgages have different requirements and criteria compared to residential mortgages. Our advisors will guide you through the specific considerations, such as potential rental income and market conditions, helping you secure a mortgage that maximises your investment potential.

Let-To-Buy Mortgage- A let-to-buy mortgage allows you to rent out your current home while purchasing a new property to live in. This option is ideal if you’re moving but want to keep your existing property as an investment. Our team will assist you in understanding the dual mortgage process and ensure you meet the necessary criteria for both properties.

Company Mortgage- For business owners or companies looking to invest in property, a company mortgage can be a strategic move. Our advisors have experience in navigating the complexities of commercial mortgages and will work with you to find a deal that supports your business goals. We'll help you understand the implications for your company’s finances and ensure you secure the best possible terms.

Why Choose Voyage Financial Planning?

Choosing the right mortgage advisor can make all the difference in your home buying experience. Here’s why Voyage Financial Planning should be your first choice:

Local Expertise- As a team based in Winchester, we have extensive knowledge of the local property market. This local expertise allows us to provide insights and advice that are specifically relevant to the area, giving you an advantage when searching for the perfect mortgage deal.

Personalised Service- We pride ourselves on offering a personalised service that prioritises your needs and goals. Our advisors take the time to get to know you and your financial situation, ensuring that the advice we provide is tailored to your unique circumstances.

Comprehensive Support- From the initial consultation to the completion of your mortgage application, we offer comprehensive support every step of the way. Our goal is to make the mortgage process as seamless and stress-free as possible for you.

Trusted Advisors- With years of experience and a commitment to excellence, our team of mortgage advisors has earned a reputation for being trustworthy and reliable. We are dedicated to helping you achieve your home buying dreams with confidence.

Take the Next Step with Voyage Financial Planning

Ready to embark on your home buying journey with confidence? Let our team of expert mortgage advisors in Winchester guide you every step of the way. Whether you're looking for a residential mortgage, a buy-to-let mortgage, a let-to-buy mortgage, or a company mortgage, we have the expertise and local knowledge to help you find the perfect solution.

Contact us today to schedule a consultation and discover how Voyage Financial Planning can make your home buying process a success. Choose our team when looking for a mortgage advisor in Winchester, and take the first step towards securing your dream home.

Planning for your retirement can be a daunting task. With so many options and variables to consider, having professional guidance can make all the difference. At Voyage Financial Planning, we specialise in providing tailored pension advice in Southampton, helping you navigate the complexities of retirement planning to ensure a secure and comfortable future.

Why Pension Planning is Essential

Retirement planning is crucial for ensuring that you have the financial resources needed to maintain your lifestyle after you stop working. With people living longer and the cost of living continually rising, having a well-structured pension plan is more important than ever. Here are some key reasons why pension planning is essential:

Financial Security:

A carefully planned pension provides financial security in your later years, allowing you to enjoy your retirement without financial worries.

Tax Benefits:

Contributing to a pension can offer significant tax advantages. Understanding these benefits can help you maximise your retirement savings.

Legacy Planning:

Proper pension planning also allows you to think about the legacy you want to leave behind, ensuring that your loved ones are taken care of.

Investment Growth:

Pension funds can grow over time through investments. Expert advice ensures that your investments are aligned with your risk tolerance and retirement goals.

The Role of a Pension Advisor

A pension advisor plays a critical role in helping you navigate the complexities of retirement planning. Here’s how a pension advisor in Southampton can assist you:

Personalised Advice:

Everyone's financial situation and retirement goals are different. A pension advisor provides personalised advice tailored to your specific needs.

Understanding Pension Types:

There are various types of pensions available, including workplace pensions, personal pensions, and state pensions. An advisor helps you understand the differences and benefits of each type.

Maximising Contributions:

An advisor can guide you on how much to contribute to your pension and how to make the most of employer contributions and tax relief.

Investment Strategy:

A pension advisor helps you develop an investment strategy that balances growth potential with risk management, ensuring your pension fund grows effectively.

Regular Reviews:

Ongoing advice and regular reviews ensure that your pension plan remains on track and adapts to any changes in your circumstances or financial goals.

Voyage Financial Planning: Your Trusted Pension Advisor in Southampton

At Voyage Financial Planning, we pride ourselves on offering comprehensive and tailored pension advice in Southampton. Our team of experienced advisors is dedicated to helping you achieve your retirement goals.

Our advisors have extensive experience in pension planning and are well-versed in the latest financial regulations and market trends. This ensures that you receive the most accurate and up-to-date advice. We take a holistic approach to financial planning, considering all aspects of your financial situation. This includes your income, expenses, assets, and liabilities, to create a comprehensive retirement plan.

At Voyage Financial Planning, our clients are at the heart of everything we do. We take the time to understand your unique needs and goals, ensuring that our advice is tailored to your circumstances. We believe in transparency and honesty in all our dealings. We provide clear and straightforward advice, free from jargon, so you can make informed decisions about your retirement planning.

We know that life is unpredictable, and your financial needs may change over time, which is why we offer flexible pension solutions that can adapt to your changing circumstances, ensuring that your retirement plan remains relevant and effective.

Our Pension Services

Voyage Financial Planning offers a wide range of pension services to meet your needs:

Pension Review:

We provide a thorough review of your existing pension arrangements to ensure they are on track to meet your retirement goals. This includes analysing your current pension contributions, investment performance, and projected retirement income.

Pension Consolidation:

If you have multiple pension pots, we can help you consolidate them into a single, more manageable plan. This can simplify your retirement planning and potentially reduce fees and charges.

Retirement Planning:

We work with you to develop a comprehensive retirement plan that includes estimating your retirement income needs, assessing your current financial situation, and creating a strategy to bridge any gaps.

Investment Advice:

Our advisors provide expert investment advice to help you grow your pension fund. We consider your risk tolerance, investment preferences, and retirement timeline to develop a personalised investment strategy.

Tax-Efficient Strategies:

We help you maximise the tax benefits associated with pension contributions and withdrawals. This includes advising on tax relief, pension drawdown options, and inheritance tax planning.

Why Choose Voyage Financial Planning?

Choosing Voyage Financial Planning as your pension advisor in Southampton means partnering with a team dedicated to your financial well-being. Here are some reasons to choose us:

Personalised Service:

We provide a personalised service that takes into account your unique circumstances and goals. Our advice is tailored to ensure you achieve the best possible outcomes.

Ongoing Support:

We offer ongoing support and regular reviews to ensure your pension plan remains on track. Our advisors are always available to answer your questions and provide guidance.

Comprehensive Solutions:

We offer a comprehensive range of pension services, from initial advice to ongoing management, ensuring all aspects of your retirement planning are covered.

Secure your financial future with expert pension advice from Voyage Financial Planning

Whether you’re just starting your retirement planning or need to review your existing arrangements, our team of experienced advisors in Southampton is here to help. Visit our website at Voyage Financial Planning to learn more about our services and schedule a consultation. Let us help you navigate the complexities of pension planning and achieve a comfortable and secure retirement.

Contact us today to take the first step towards a brighter financial future.

In the charming town of Romsey, securing your financial future is more critical than ever. Whether you're planning for retirement, looking to invest wisely, or aiming to manage your wealth effectively, having a trusted advisor by your side can make all the difference. This is where an independent financial planner in Romsey becomes invaluable. At Voyage Financial Planning, we offer personalised, unbiased financial advice tailored to your unique needs.

What is an Independent Financial Planner?

An independent financial planner is a professional who provides comprehensive financial advice without being tied to any specific financial products or institutions. This independence allows them to offer objective and personalised recommendations based solely on the client's best interests. In Romsey, an independent financial planner can assist you with various aspects of financial management, including investment strategies, retirement planning, tax efficiency, estate planning, and more.

The Importance of Independence in Financial Advice

Independence in financial advice is crucial for several reasons:

• Unbiased Recommendations: Independent financial planners do not have affiliations with particular financial products, ensuring that the advice they provide is unbiased and solely focused on your financial well-being.

• Broad Range of Options: Without the limitations imposed by affiliations with specific products, independent advisors can explore a wide array of financial instruments and strategies, providing more comprehensive and adaptable financial planning solutions.

• Client-Centered Approach: Independent advisors are dedicated to building long-term relationships with their clients. This client-centered approach ensures that your financial plan evolves with your changing needs and circumstances, offering a more personalised and effective financial management experience.

Benefits of Working with an Independent Financial Planner in Romsey

Choosing an independent financial planner in Romsey, such as those at Voyage Financial Planning, offers numerous benefits:

Personalised Financial Strategies- At Voyage Financial Planning, we recognise that each client's financial situation is unique. Our independent financial planners take the time to understand your goals, risk tolerance, and financial situation. We then develop a personalised strategy that aligns with your objectives, whether you are planning for retirement, saving for your children’s education, or looking to grow your wealth.

Expertise and Experience- Our team of independent financial planners brings a wealth of experience and expertise to the table. We stay up-to-date with the latest financial trends and regulatory changes to ensure that you receive the most current and effective advice. Our deep understanding of the financial landscape in Romsey and beyond allows us to craft strategies that are both innovative and reliable.

Holistic Financial Planning- Financial planning is not just about investments. It encompasses a wide range of services, including retirement planning, tax planning, estate planning, and risk management. At Voyage Financial Planning, we take a holistic approach to ensure all aspects of your financial life are considered and optimised.

How Voyage Financial Planning Stands Out

At Voyage Financial Planning, we pride ourselves on being a leading independent financial planner in Romsey. Here’s what sets us apart:

Client-Focused Service- Our clients are at the heart of everything we do. We prioritise your needs, aspirations, and concerns, ensuring that the financial strategies we develop are perfectly aligned with your life goals. Our commitment to transparency and communication means that you are always informed and involved in every step of your financial journey.

Comprehensive Financial Solutions- We offer a wide range of services to meet all your financial planning needs. From retirement planning and investment management to tax planning and estate planning, our independent financial advisors in Romsey are equipped to provide comprehensive solutions tailored to your unique situation.

Proactive and Adaptive Planning- The financial landscape is constantly changing, and we believe your financial plan should be adaptable. Our independent financial planners continuously monitor your plan and the broader financial environment, making adjustments as necessary to ensure your strategy remains effective and aligned with your goals.

The Voyage Financial Planning Process

Our process at Voyage Financial Planning is designed to be thorough and client-centric, ensuring that every aspect of your financial life is considered:

• Initial Consultation: We start with an in-depth consultation to understand your financial goals, current situation, and future aspirations.

• Customised Planning: Based on our understanding, we create a tailored financial plan that addresses your specific needs and objectives.

• Implementation: We assist you in implementing the recommended strategies, ensuring that you are comfortable and confident with each step.

• Ongoing Review: Regular reviews and adjustments are crucial to keeping your financial plan on track. We stay connected and provide continuous support to adapt your plan as your life and financial circumstances evolve.

Why Choose Voyage Financial Planning?

Choosing Voyage Financial Planning means opting for a trusted partner dedicated to helping you achieve financial freedom. Our independent financial planners in Romsey are committed to providing personalised, unbiased advice that empowers you to make informed decisions. We believe that financial planning is a journey, and we are here to guide you every step of the way.

So, in today's complex financial world, having an independent financial planner in Romsey can be the key to achieving your financial goals. At Voyage Financial Planning, we offer the expertise, personalised service, and unbiased advice you need to navigate your financial journey with confidence.

Don't wait to take control of your financial future. Contact Voyage Financial Planning today to schedule your initial consultation and start your journey toward financial freedom. Visit our website at Voyage Financial Planning or call us on 02381 102 094 to learn more about how we can help you achieve your financial goals.

It’s been a couple of months since our last blog and in that time, Chris completed the London Marathon whilst raising funds for Children with Cancer - an incredibly worthy charity who will obtain £2.5k for his efforts. A personal goal was also achieved as every mile was completed under the watchful eye of his eldest son Ollie. Chris had always dreamt of completing the iconic road race with his son present and who knows, maybe one day they’ll complete it together.

Much of life is about making memories as time does not stand still. This is why we at Voyage FP believe it is so important to plan for the future as best we possibly can.

Marathon training can be like retirement planning in the sense that you can’t cheat the training to be fit and ready to compete the run. You also can’t cheat planning for your retirement, there are things we must do to be fit and ready to be in the best retirement shape.

A large proportion of society describe that they will keep working until they can’t work any more as they can’t afford not to work - it doesn’t have to be like this.

Wouldn’t it be great if we took control of our future and therefore had the ability to decide if we wanted to keep working or not. If we have the financial capabilities behind us to make these choices it gives us the ability to decide.

Let’s put this another way - When we purchase a property, we know it will take around 35 years to pay off the mortgage and generally speaking we set it to end before we enter anticipated retirement. We appreciate and understand that, unless we come into a significant amount of money, we have to take a long-term view of paying down this mortgage. At the end of the 35 years, we own a property outright and mortgage free. At this point we don’t have a mortgage to pay but we still have fixed costs to pay for such as council tax, gas, electric, water, cars, good etc. if you’re not working, how are you paying for these things?

Training for a marathon ensures we complete the race. Paying off a mortgage over 35 years ensures that we own our homes outright. We need to consider retirement planning in the same fashion - we need to put the preparation in to achieve the goal. The retirement goal can be very simple: maintaining a certain standard of living in retirement.

When we retire, in very simple terms, pension income replaces the income we lose from our employer. That is something you really want to be planning for if you want to ensure that you maintain the standard of living that you are accustomed to.

Try to picture yourself as a 65 year old and ask yourself; “do I regret not planning for my retirement or wish I had started earlier?” Each day we delay planning, is one day closer to retirement.

We’re fast approaching spring, and the evenings will gradually become brighter. Many of us will start to think and plan for the summertime. Plans could include holidays or the time we want to set aside to spend quality time with friends and family. 

When we set our minds to something we want to achieve, we become focused by setting clear goals for how we will reach it. These goals or aspirations are personal and are what make our lives feel rich and fulfilled. 

“Rich” doesn’t necessarily mean having endless funds, though. It can simply be having a strong set of values, a family unit, and close friends. Some would describe “rich” as having a roof over our heads or the ability to enjoy life. The point is that “rich” can be a relative term that means different things to different people. 

During our working lifetime, we can achieve our goals or fund our lifestyle by essentially trading our time and skills at work for an income. This cycle of trade doesn’t really change unless the following happens: 

1. We come into a substantial amount of money which we can use to fund our lifestyle without having to work or 

2. We retire. 

Although the options above may seem like different scenarios entirely, in fact, they are more closely related than they can first appear. Allow me to explain; 

Both options truly rely on a simple concept - having the financial capability to fund our lifestyles without having to trade our time for work. Having financial capability behind us provides us with the financial freedom we all crave. 

Of course, we all know money doesn’t buy happiness. However, what money can buy is choices. For example, do I still want to work full-time, part-time, or not at all? The ability to make choices without the worry of finances can enable us to lead the life we have always dreamed of. 

Financial planning, in essence, is lifestyle planning. How do you want to live your life in the future? 

We aren’t all lucky enough to come into the kind of money that is life-changing, and we have the choice to stop working. This means that most of us must instead plan and work towards the ultimate goal of having the financial capability that enables us to have the freedom to live the lives we have always dreamt of. 

Many suggest that January is the worst month of the year. The rationale behind this is that it is one of the most cold and dark months that there is in the UK whilst also contending with “Blue Monday” and it seems like an age since last pay day! 

“Blue Monday” is something the media LOVE to talk about - It falls on the 3rd Monday of January each year, but do you know how this day came about? Let me enlighten you - it was a gimmick. It was a way to generate sales for a well-known travel company. It was dreamt up by a psychologist by the name of Dr Cliff Arnall in 2004. The idea was that January is so “blue” that you should go and book a holiday.

Quite clever actually as we are still talking about it 20 years after its creation - even despite the fact that most people agree that it’s nonsense. Personally I like to focus on positive and impactful dates in the New Year and one date in particular that I feel is important is the 5th of April.

The financial year falls between 6th April to the 5th April the following year and whilst some don’t see the importance, allow me to highlight why it is important to take note.

At the start of each financial year, our personal allowances for various things refreshes. Everything is reset in this regard. Here are some of the key personal allowances that may be relevant to you:

• Pension Contribution – up to £60,000 per annum (subject to income earnings).
• ISA allowance - £20,000 per annum.
• Capital Gains Tax (CGT) Allowance - £6,000 per annum.
• Savings Allowance - £1,000 per annum for non-taxpayers and basic rate taxpayers, but will reduce to £500 for higher-rate tax payers.
• Dividend Allowance - £1,000 per annum.

Other than Pension Contributions, you cannot carry forward any unused personal allowance, so the phrase “use it before you lose it” is very appropriate here.

For those of us who are self-employed or directors of a limited company, these dates are important as it enables you to make contributions which could help you not only plan for your future, but also reduce your tax liability. We’re all aware tax returns need to be filled by the 31^st January for the previous tax year which means it is too late to affect the tax liability for the previous year.

To highlight the importance of the looming ending tax year, the CGT allowance for the tax year 2022/23 was £12,300, but as you can see, it is currently £6,000 for 2023/24 and to compound this further, it will reduce again to £3,000 from the new tax year commencing 6th April 2024.

Working with a Financial Adviser can be a substantially beneficial experience as they can help you utilise these personal allowances in a way which can help you not only reach your financial goals, but also ensure you aren’t paying any unnecessary tax.

It is important to note that the FCA does not regulate tax planning.

Would you believe that we are entering the 5th year of the 2020’s?

It’s been a somewhat turbulent start for several reasons; however, we are unable to grow without considering the lessons learnt from adversity.. and the 2020’s have therefore given us much to learn from! As much as learning from the past is a worthwhile exercise, let us not dwell on it and instead, we’ll look to the future with measured optimism.

It’s around this time of year that some of us will traditionally set out to come up with a New Year’s Resolution, and whilst this is commendable, according to recent data, as many as 80% of people fail to keep these resolutions by FEBRUARY and as little as 8% of people stick with it for the entire year! However, I believe that if we remove the stigma attached to New Year’s Resolutions - or more so, the failure of them, and focus on goals we want to achieve, with the right planning these goals are achievable.

Planning is key - when people come up with a New Year's Resolution it is usually in the spur of the moment and they focus on the end result but not how they intend to get there. This is a massive contributor to why these plans fail.  Whether it’s in our personal or professional lives, having goals is a wonderful thing as they inspire and push us, but to achieve those goals, we must plan.

Personally, I am running the London Marathon in April, and I’m likely to have better success if I plan my training sessions rather than turning up in April and hoping for the best. 

Having goals to better ourselves is commendable, and it can be anything from DIY, learning a new language, reading, saving for a home, developing a healthier lifestyle, working towards a promotion at work - the list goes on.

A viable and highly achievable goal which each of us can do, is starting to plan for our eventual retirement. I appreciate some people are of the opinion that they will work ‘till they drop, but realistically, we’re all going to need to retire at some point. I think most of us agree that we want to be ‘comfortable’ in retirement and not have to worry about money. Some people have aspirations to retire as soon as viably possible. Others use the state retirement age as a guide… some other people haven’t even given it a thought. We know that a comfortable retirement is the goal but do you know how you’re going to achieve that?

When discussing retirement plans with individuals, it’s not just about understanding if you have enough to pay the bills, for me, it’s about what it is that you want to achieve in retirement.

We spend at least 40 years of our lives working, and for the most part, we enjoy it but if given the opportunity, we would all love to be in a position where we could decide if we want to work or not - this is called Financial Freedom. Achieving Financial Freedom gives you the ability to make the choices you want.

Once we retire, we lose our main source of income because our employer is no longer paying us. To maintain our standards of living, we need to replace that employment income from other sources such as pension, investment income or property income, to name a few examples. One thing all retirement incomes have in common is that it takes time to build so it can provide us with the retirement that we aspire to receive but also the ability for that income to last.

At the end of 2024 wouldn’t it be great to look back and reflect on how we took control of your financial future? How you took steps to ensure your financial freedom in the future.

Due to the nature of most people's lifestyles, most of the time, we find we must react to certain situations as we haven’t prepared or completed a certain task. This results in the task being even greater.

Let’s take running the London Marathon as an example. We know a marathon is 26.2 miles, which means, unless you are a professional athlete, you are going to have to be proactive in terms of your training. Training will consist of time, dedication, and commitment. There will be times when you get in from work, you’ve had a stressful day, and you just can’t be bothered. You may even convince yourself that ‘I will go tomorrow’ or ‘I’ll do extra next week’ when you know deep down you won’t.

Before you know it, it’s the 1^st April and the Marathon is circa 4 weeks away. Thoughts start creeping into your head ‘How am I going to achieve my goal?’ or ‘Will I be able to actually complete the event?’ and then the frustration of ‘Why didn’t I start sooner? I knew when I had to be ready'.

The reason why I'm using the London Marathon as an example is that I’m due to run it in April 2024. I’m certainly no professional athlete, and therefore, I have to manage my time effectively so that I can continue to do the day job but also train to prepare for a 26.2 mile run.

Due to modern living, it can be a challenge to plan and prepare for anything outside of “the norm”, like training for a marathon.

I often liken Financial Planning to Marathons as both take time and dedication. It’s something you need to prepare for, and the sooner you start and the more disciplined you are, the greater the results tend to be.

Planning for your retirement, where you have the financial freedom to enjoy and thrive during retirement, takes time and preparation. It is certainly not something you can rush as it requires a proactive approach. No one is going to complete those training runs for your marathon, and no one is going to make you plan for your retirement. We must take charge of the situation with the goal of achieving financial freedom.

If we aren’t proactive, then we put ourselves under unnecessary stress from not being prepared. We are then relying on hoping that our workplace scheme (if you are employed) will be sufficient, or maybe we will inherit a lump sum. Ifs, buts, and maybes - why take the risk? Being consistent at completing those training sessions or paying into your pension means you are on the right path to achieving your goal.