Get Your Finances in Shape for 2020

Graham Murray, Chartered Financial Planner and Partner at Wright Johnston & Mackenzie LLP, shares five top tips on how to get your finances in shape for 2020.

Make a plan

Think about what your financial goals are in the shorter and longer term. Take stock of your current position by making a budget, and consider whether anything needs to change. Does your overall income and spending align with your goals?

Review your pension

Check how your pension is doing and whether it will meet your long term needs. Are you paying in enough to build up a sufficient retirement fund? Are you happy with how it is invested and how it is performing?
For the self-employed or business owner, be disciplined about contributing an adequate proportion of profits each year, to build your long term financial security independent of your business. Careful planning here benefits you and your business.

Use tax allowances

Don’t miss the opportunity to use your tax allowances (e.g. pension, ISA) before the end of the tax year, in line with your wider financial plan.

Protect your loved ones

Ensuring your family is provided for should anything happen to you is essential. Make sure you have an up-to-date Will in place, and a Power of Attorney. Life insurance is often neglected but having the right cover is important, especially if you are a business owner, have financial dependents, or borrowings.

Seek advice and don’t put it off

It’s not easy to be objective about your own situation, or to know the best route to achieving your financial goals. Seek professional advice to develop a financial plan which best suits your needs and takes into account the current investment and tax landscape. Your adviser will help implement the plan and keep it under review.

The earlier you start, the better. Whatever stage in your life you are at, Wright, Johnston & Mackenzie LLP can help you keep on top of your finances in 2020.

 

This article first appeared in Business Insider magazine