Article written by Kellands Hale, our preferred independent advice firm.
This article is not intended to be financial advice to any individual. The views expressed are those of the author and Moneyfacts.co.uk does not endorse the content.
As 2023 begins, it is likely you are taking stock of last year. You might be reflecting on the ups and downs, and the choices you were proud of – along with the ones you’d rather not repeat.
Indeed, in traditional fashion, it could be helpful to ponder on the learning curves you’ve experienced throughout 2022, and look forward to further growth and stability in the year ahead.
Usually, our new year resolutions are centred upon aspects of our lifestyle we wish to improve. Diet, exercise, taking up new hobbies and quitting bad habits are likely at the top of your list.
However, aspects of life we often forget to include are financial habits, choices and goals.
Sadly, many of us don’t stick to the targets we set. According to a YouGov survey, only 35% of respondents stuck to their New Year’s goals in 2020.
Sometimes, giving up on our New Year resolutions comes down to expecting too much of ourselves – and here at Kellands, we believe in setting achievable goals.
So, here are two practical financial new year resolutions you can actually stick to for 2023.
Often, you might forego registering and updating essential financial documents – there always seem to be so many things on your to-do list that you simply never get round to it.
However, accumulating substantial wealth without certain documents in place could put your estate at risk. Although it’s hard to find the time, having these measures in place could give you the peace of mind you need this year.
Here are two essential documents to create or update at the start of 2023.
It’s difficult to think about, but one thing that may keep you up at night is what might happen to your family if the unthinkable occurred. Keeping your family and your wealth safe is understandably your number one priority – and luckily, an LPA can help achieve this.
An LPA is a document that allows a nominated attorney (usually your spouse, a close family member or trusted professional) to take control of your affairs if you become incapacitated. “Lack of capacity” includes if you are diagnosed with a cognitive illness such as Alzheimer’s, or you suffer a brain injury.
There are two types of LPA: one that covers healthcare choices, and another that gives your attorney full access to your finances.
Worryingly, there are many misconceptions around how power of attorney works. A 2022 Lloyds Banking Group survey revealed that 80% of over-55s do not have an LPA.
Plus, almost one-third wrongly believe an attorney is only appointed after you become ill – when in fact, an LPA must be registered while you still have capacity.
Without a financial LPA in place, your loved ones could be locked out of financial documents that are in your name while you’re ill – including your mortgage, bank accounts and insurance policies. This even applies to your next of kin.
If you wish to register or update your LPA in the new year, contact your Kellands financial planner. We can help.
If one of your new year resolutions is to reduce your stress levels, protecting your wealth is a great place to start.
It isn’t a pleasant thought, but have you ever wondered what might happen if you were to pass away unexpectedly? Could your loved ones afford to stay in your home, and enjoy their current lifestyle, without your income?
Putting protective measures in place, including taking out life insurance and income protection, is an essential step for any professional with assets to protect.
A tax-efficient payout could provide your family with peace of mind upon your death, rather than them being landed with significant financial stress.
If you are looking to protect your wealth from the unexpected, this new year is the perfect opportunity to get your affairs in order.
If you already work with us here at Kellands, it’s likely you have medium- and long-term goals in place.
2022 proved to be an interesting year for everybody’s finances, and you may feel some uncertainty about the performance of your portfolio, your annual savings or your earnings as a business owner. Most investments have taken a downturn this year, so it’s important to remember you are not alone in this feeling.
However, a new year often signifies a fresh start – and while 2023 could bring new challenges, thinking practically can be constructive.
So, scheduling a sit-down with your financial planner in the new year to review your medium- and long-term goals could be extremely beneficial.
In your conversation, you may cover:
Assessing these factors with the help of a professional this January could help you begin the year with peace of mind and confidence.
For help with setting and sticking to financial goals in 2023, email us at email@example.com, or call 0161 929 8838.
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
This article is for information only. 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.
Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
© Kellands (Hale) Limited is authorised and regulated by the Financial Conduct Authority. FCA Firm Reference No. 193498
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