Let us explain the order of priority that you need to create your financial pyramid for optimum financial wellbeing…
Emergency Fund
At the base of our pyramid, we have our emergency fund. This is the priority and the foundation for all good financial planning. Typically, an emergency fund is 3-6 months of expenditure to pay out for the unexpected.
Protection
Next we have insurance. Being prepared for the unexpected financially protects you and your family. Should you have an accident, suffer a critical illness, or even death, these premiums pay towards outgoings such as the mortgage and bills, protecting you and your family if you can’t work.
Retirement Planning
We want you to have one enjoyable, secure and comfortable retirement. Generally, a retirement plan means paying into a tax-efficient pension to provide (or top up) your retirement income.
Savings and Investments
If you have spare income after the previous levels of your financial ‘pyramid’, consider savings and investments to make the most of tax-efficient options, such as ISAs.
Inheritance Tax Planning
For those who will incur an inheritance tax on their estates have options to reduce the amount of tax liable after death. This is where an adviser can discuss the options for you to make informed decisions that’s right for you and your loved ones. They can also discuss gifting, trusts, beneficiaries and whole of life policies.
A Financial Planning appointment will help you create your hierarchy of financial needs.
We want you to live in financial peace, enjoy financial freedom and ensure your financial wellbeing is taken care of. Contact us today to book an appointment.
The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.
The Financial Conduct Authority does not regulate both Advice on Cash on Deposits and Trusts.
Tax treatment varies according to individual circumstances and is subject to change.
For ISAs, Investors do not pay any personal tax on income or gains, but may pay unrecoverable tax on income from stocks and shares received by the ISA managers.
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 11.03.2024
