News details
It's time for your financial MOT
12/7/2009
Alok Dhanda of Dhanda Financial explains the importance of having a financial check up in this festive period and explains how to make 2010 a healthy financial year.
As we enter the festive season and prepare to leave 2009 behind, now is the perfect time to run an MOT check on your personal finances.
Too many of us in the UK view discussions about death or critical illness as being something of a taboo subject, but you shouldn’t put off thinking about financial planning for these worst case scenarios - it is imperative that you have adequate life cover, critical illness cover and income protection in place for the coming year.
For instance, the wintry conditions are upon us now, with icy roads and dark nights, but have you given thought to what would happen to your family or business if you were involved in a car accident?
Take Princess Diana for example. Nobody would have expected her to die so young, and her estate had to pay millions to the government in inheritance tax when she was tragically killed. Similarly, TV star Jade Goody’s death at the age of only 27 shocked the nation, but she was lucky to be able to leave a comfortable sum of money to her family. Who can say how many other young mothers like her in the UK are suffering from a similar condition and yet have no cover in place?
2009 has been a difficult year of doom and gloom due to the effects of the recession, but think of how much worse it would be if your family experienced illness or death without being financially prepared. Unfortunately, a hearse is not a rehearsal. At funerals, families want to remember their loved ones, rather than worry about whether or not sufficient life cover is in place.
An Independent Financial Adviser can help you build a comprehensive financial portfolio that will see you, your family or your business through any unforeseen changes in your circumstances. This will minimise the risk of having to uproot your family and downsize due to financial difficulties, and would ease the pressure of loans and debts during an already difficult time.
Just as you would go for a six-month check up to your dentist, it is equally important to fill any financial cavities that might be surfacing towards the end of the year. For example, as we are coping with an ageing population, with people growing older and living longer, it is worrying that many of us are not yet saving for our retirement. The age of eligibility for a state pension is set to rise in coming years, so it is more important than ever to build a healthy pension pot for a comfortable retirement.
Moreover, the UK’s interest rates are low at the moment, so time is of the essence. Why not use this period, whilst you are paying less into your mortgage, to take advantage of these low rates and rearrange your finances? Make arrangements to save your surplus funds as part of a sensible financial plan.
Winston Churchill famously said: “If I had my way, I would write the word ‘insure’ upon the door of every cottage and upon the blotting book of every public man, because I am convinced, for sacrifices so small, families and estates can be protected against catastrophes which would otherwise smash them up forever.” Take his advice this Christmas. See an Independent Financial Adviser who will help you to work out a sensible portfolio and make sure 2010 is a healthy and wealthy financial year for you.
For further information on how Alok can help you with your personal or business planning needs, contact Dhanda Financial, 52 Dean Street, Newcastle upon Tyne, NE1 1PG, telephone 0191 255 8960 or email alok@dhandafinancial.com
