As we come to the close of the year, we at Rutherford Hughes would like to wish all readers a very happy festive season and a healthy and peaceful 2022!
Looking back at 2021, we have continued to suffer under the Chinese curse, “may you live in interesting times.” Frankly, I do not see that changing any time soon.
This year has been another profitable one for our client investors, building upon outstanding years of 2019 and 2020. Hopefully, 2022 will be positive too.
The end of a year and the beginning of the next is an ideal time to review your circumstances and to have a spring clean of your finances. Below is a checklist of the sort of things we would suggest you review.
Wills and powers of attorney need to be in place and reviewed from time to time to ensure they match your needs and intentions. Effectively, no-one dies without a will as the State provides for a standard distribution of assets, whether or not that would have suited the deceased.
If applicable, this would be a good opportunity to review your Inheritance Tax position. We regularly work with solicitors and accountants to reduce the IHT bills for their clients and there are many routes that can be followed.
Next, think about your assets and liabilities. Would you be leaving loved ones with liabilities if a turkey bone catches in your throat? Do you need life insurance or is there sufficient in place already?
I know that this is not cheerful but what if you suffer an illness or accident that prevents you from working. Where will your income come from, and will it be sufficient? Remember the State only provides a basic safety net and does not consider the lifestyle you may have previously enjoyed.
Income protection and critical illness cover could make all the difference to you and the family in such circumstances. We have personal experience within this firm of how important this is.
Review your cash balances. Do you have enough cash available to cover an emergency and planned expenditure? If not, try and save a little more each month. If you have more than enough, take some independent financial advice on what you could be doing with the surplus. We certainly give a free initial conversation, as do many other advisers. Do ensure that the adviser is independent and not tied to one company. That is your best way of avoiding heavily charged underperforming products with exit penalties.
It is also a good idea to plan for retirement. Think about what you need to have in retirement for the lifestyle you want. Review what you have in your pension already. Is it going to be enough? Do you need to invest more into it? If so, can you save more now or are you prepared to work for longer?
Next, protect your house. You may have heard of the Luton man who had his house and possessions stolen in a fraud. He was working away and returned to find that someone had bought his property without his knowledge. They were in the middle of renovating it and had disposed of his furniture etc. You can protect yourself by going onto the Land Registry website and registering for notifications if anyone should carry out searches on your property. It is free and takes about five minutes to set up. All the above are matters that we should ensure are taken care of, and most need to be reviewed from time to time as circumstances change. Do not worry about them, just get them done. Then relax, enjoy the festivities, and move into 2022 with optimism and positivity. All the very best.
