Once you have a financial plan in place, it is by no means the end of the story as far as preparing for the future is concerned.
Instead, we will maintain and update your plans, up to and into retirement.
A key part of your planning process will be a series of regular reviews. Held at least annually, these will:
- Check you are on track to hit your targets
- See if any changes are required, such as adjusting your investment strategy
- Take any changes to your objectives into account.
These reviews will be key milestones in your financial journey, particularly as you get closer to retirement.
However, there may be times between reviews where you should be contacting us. This could be because certain events necessitate immediate action to prevent potential issues blowing your long-term plans off course.
Alternatively, you may want to take advantage of opportunities to enhance your plans, such as increasing your pension contributions or paying off your mortgage early.
Here are five events we need to know about if they happen between review meetings.
1. Changes in your employment status
Clearly, the money you earn each month will be crucial to your long-term planning. Your earnings will effectively be the engine that drives you towards your financial future, both in terms of funding your current lifestyle and saving for long-term aims.
So, any major changes to your earnings, whether good or bad news, could affect your plans. As a result, it is something that we should be aware of as soon as it happens, rather than at your next review meeting.
Obviously, you or your partner losing your job, especially for an extended period, could mean you need to adjust your short-term financial objectives.
Meanwhile, good news, such as a big increase in your salary or a new job with greater prospects, will mean you having more money to invest and save. This could improve your ability to work towards future plans.
Whether it is positive or negative news, we can help you adjust your plans.
2. The arrival of children and grandchildren
Any significant changes to your family circumstances could affect your finances. The most common is the arrival of a new child or grandchild.
In the case of a new child, you may need to adjust your plans to account for a new addition to your immediate family. We may discuss preparing for their financial future, but also protecting your own income to ensure they are secure if you are unable to provide for them.
Likewise, if you become a grandparent you may want to consider setting aside regular amounts for their long-term future, or for specific expenses such as school fees.
3. Less happy family events
As well as happy events such as the arrival of children, it is also important to consider less enjoyable circumstances that could mean you have to change your plans.
For example, the death of a close relative such as a parent could have an immediate effect on your personal finances, both in terms of any assets you may inherit, but also a potential change to your financial responsibilities.
Equally, if you divorce or separate from your partner it can help to get us involved in your financial planning promptly, rather than waiting for your next annual review.
In all these cases, making us aware of your changing circumstances will help us provide you with immediate guidance, and adjust your long-term plans.
4. Receiving a large sum of money
Receiving a substantial sum of money, whether through an inheritance or a big bonus from your employer, could significantly improve your financial position.
In these circumstances, it can really help to talk through your plans and priorities as soon as you are aware of the size of the windfall.
This can help you find the most appropriate way to make use of your new-found wealth to secure the financial future of you and your family.
5. Other unexpected changes in your circumstances
While any robust financial plan is flexible, there may be unforeseen events you are not prepared for.
These do not necessarily have to be bad news. For example, you may get a sudden opportunity to work abroad, or buy into a new company.
One of the main aims of financial planning is to ensure you are confident that your future is secure. So, if there are ever any big events you feel may jeopardise your financial aims or cause your plans to change, a discussion with us can help put your mind at rest.
There may well be times when we will contact you
All the circumstances you have read about here are good reason for you to contact us between reviews. By the same token, however, there may also be events that will prompt us to get in touch with you to discuss your financial plans.
For example, there may be a change in financial legislation that we feel could affect you and it may be useful to consider changing your plans.
Likewise, an impactful external event, such as a market crash, could inspire us to contact you, even if just to reassure you that your plans are still on track.
Get in touch
If you would like to talk about your own financial planning arrangements, please get in touch with us at DBL Asset Management.
You can email enquiries@dbl-am.com or call 01625 529 499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
Your home may be repossessed if you do not keep repayments on your mortgage.
The Financial Conduct Authority does not regulate estate planning.