Peace of mind

It’s a common fact that financial concerns can cause sleepless nights. The unease of uncertainty tends to amplify at night, affecting our peace of mind. A study conducted in 2016 reveals that uncertainty is more distressing than having a surety of unfavourable outcomes. Understandably, many people are concerned about their financial stability. For most of us, financial peace of mind is paramount. We want the assurance that our future is secure regardless of what lies ahead. Fortunately, sound financial advice can provide this peace of mind.

Beating inflation

While news that inflation fell to 10.1 per cent in January was encouraging, it still poses one of the greatest financial threats. Interest rates may increase, with banks now offering more than 4% if you’re prepared to forgo access for at least a year, but this is still less than half the inflation rate. Independent financial advice is helpful, to make a plan to keep up with the constantly changing landscape to ensure your savings hold their value.

An adviser will learn about your investment attitude and goals and recommend the right plan. 

Major life events 

Major life events tend to have a significant impact on our financial situation, whether it’s positive or negative. For instance, a job promotion can lead to a higher income, allowing you to save more or buy a bigger house. However, it could also put you in a higher tax bracket. Becoming a parent is an exciting experience, but it comes with additional expenses such as childcare, family protection, and savings plans for your children. This might mean that your finances won’t stretch as much as they used to, at least during the early years. When significant changes occur in your life, seeking financial advice can help you stay on track with your goals. It may even inspire you to set more ambitious goals for the future.

Bricks and mortar

If you have a fixed-rate mortgage that’s expiring this year, you might be in for a rude awakening. Interest rates have been on the rise since December 2021, reaching 4%, and mortgage rates have followed suit. As a result, the average two-year fix deal has climbed up to around the same rate, significantly higher than a year ago. Reports suggest that approximately two million households with fixed-rate mortgages are due to expire in 2023, and many of them could end up paying thousands more in repayment costs each year. If you’re one of them and you’re worried about the potential impact on your biggest monthly outgoing, it might be helpful to seek mortgage advice. A regulated broker can help you find the right mortgage deal at the best price by scanning the market.

You’re nearing retirement

When it comes to retirement income, it’s crucial to make informed decisions. Your choice between guaranteed income products like annuities and income drawdown will have a long-term impact on your financial stability. Making the wrong choice could be financially disastrous, as annuities are irreversible and drawdown may leave you with too little money. There is no one-size-fits-all solution, as everyone’s situation is unique. The key is to choose an approach that is appropriate for your circumstances. It’s important to seek guidance from a certified and regulated professional given the stakes involved in planning for your retirement. In addition, you may need assistance determining whether consolidating your current pensions is worthwhile and when and how to withdraw tax-free cash from your retirement funds.

The butterfly effect

It’s important to start saving for your financial future soon. Even waiting a few years could result in significant financial loss. This is known as the cost of delay, which means that the longer you wait, the more difficult it becomes to save. While we understand that times are tough with rising costs, even small savings can accumulate over time. Consulting a financial advisor can assist you in determining how much you can afford to save and help you reach your financial goals, ultimately saving you money in the long run.

Planning your journey

Making a financial plan may seem simple, but the real challenge lies in devising a strategy and being dedicated to executing it. This is true whether you’re aiming for a short-term goal like building an emergency fund or a long-term one like retirement planning. If you require assistance creating a plan, rest assured you’re not alone. Seeking guidance is common, and not just in financial matters. For instance, even professional athletes often hire sports and fitness coaches. A qualified advisor will take the time to understand your life goals, devise a personalised plan, and periodically review it to keep it on track despite any obstacles that may arise.