Regular financial reviews may help you get more out of every stage of life

Balancing your long-term goals with enjoying your life now can be a difficult balancing act. Regular financial reviews could ensure you get more out of your life at every stage by helping you to strike a balance that suits your needs. 

It’s a common misconception that financial planning is simply about accumulating wealth. While managing your assets is a key part of effective financial planning, it’s about more than that. A financial plan could give you the confidence to enjoy life now while securing your future. 

A financial plan could be valuable and help you reach your goals, but to get the most out of it, ongoing reviews may be just as important. 

Your goals and priorities may change over time

What were your goals and priorities 20 years ago? While some may have remained constant throughout your life, others could have changed significantly. 

Perhaps in your 30s, you were focused on progressing in your career and building wealth.

How “lifestyle financial planning” could help you reach your goals

Effectively managing your finances to get the most out of your assets often means going beyond paying into a pension regularly or selecting a fund to invest through. That’s why lifestyle financial planning could help you better align your finances with the life you want to lead now and in the future. 

Financial advice alone might help you understand the benefits of investing money and which opportunities may suit your financial risk profile. While this is useful, it doesn’t consider how investing could support your lifestyle goals. Lifestyle financial planning could help you bridge the gap between your finances and aspirations. 

Read on to find out more.

A lifestyle financial planning conversation starts with your goals

While you might expect a financial plan to start delving into the numbers straightaway, lifestyle financial planning is as much about your goals as your assets.

4 unpredictable life events that could mean you’d benefit from a financial review

It doesn’t matter how much you prepare; sometimes unexpected life events could mean your carefully laid plans go awry. While you can’t know what’s around the corner, you can change how you respond to unpredictable events to help keep your financial plan on track.

A life event could have a huge impact on your wealth, both now and in the future. Circumstances outside of your control might even lead to you changing your long-term goals. So, even if you already have a robust financial plan in place, a review following major life events could be helpful. 

Here are four unpredictable life events you might have experienced that could mean you’d benefit from updating your financial plan. 

1. Experiencing redundancy

    Redundancy could have a huge effect on both your short- and long-term finances.

    In the short term, you might need to dip into savings or other assets to cover your essential outgoings.

    Why tuning out political speculation may help you stick to your financial plan

    In a historic victory, the Labour Party won a majority in the 4 July 2024 general election. After 14 years of Conservative government, you might be wondering what the change means for you and your financial plan. 

    Since Keir Starmer took office, a day has barely passed without headlines speculating about the changes Labour will enact. The news can affect your emotions and spur you to make decisions that don’t align with your financial plan.

    For example, after reading that some investors are already acting to “protect their pension” from Labour, you might think you need to do the same. Or suggestions that Starmer could raise revenue by increasing the standard rate of Inheritance Tax may mean you start thinking about how to pass on wealth now. 

    Indeed, according to a poll from interactive investor, in the weeks before the general election, 15% of investors made changes to their portfolio, and a third considered doing so.

    97% of fund managers believe uncontrolled climate change will affect investments

    A survey has revealed that the majority of bank and fund managers believe that uncontrolled climate change will impact their investments in the medium term.

    Read on to find out how it could affect your finances.

    UN: The window for tackling climate change is closing 

    In the Paris Agreement in 2015, 195 nations pledged to tackle climate change. The agreement aims to limit global warming to “well below” 2C when compared to pre-industrial levels and to “pursue efforts” to keep warming within a 1.5C limit.  

    Scientists have previously warned that crossing the 2C threshold could lead to irreversible changes to ecosystems and the climate. 

    However, despite the pledge, the UN warned in 2023 that the window to reach climate goals was closing. A report from the organisation said “much more needs to be done”. 

    Exceeding the climate target could disrupt many communities and parts of modern life, which may affect the performance of investments.  

    Most bank and fund managers say climate change will impact investments within 5 years

    A survey published in FTAdviser asked bank and fund managers how they believe climate change will impact their investments.

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