In a recent article for Mindful Mum, I suggested that older mothers could benefit from seeing an independent financial adviser (IFA) to help plan for the upbringing, education and legacy for their children. Actually, all of us should do some financial planning, regardless of the age at which we start our families. It isn't just about feeding and clothing a child. We are fortunate in this country that school uniforms are sold in supermarkets for next to nothing, health and dental care are covered by the NHS and public transportation is free for children. Still, the most recent cost estimates of raising a child born in the UK to the age of 21 is £200,000. The average UK family has 2 children. Scary, isn't it?
The financial pinch is getting just a bit sharper all the time, with rising costs and cuts to public budgets. When they're young, children's costs seem to be mainly about after-school clubs, sports kit and birthday parties. Fast forward a few years and it's a different story. You may find that your teenagers can't find the Saturday jobs that once helped support their social lives. School-leavers may think twice about higher education now that tuition has risen to £9,000 a year at some universities. Many children are now happy to stay at home with Mum and Dad into their 20s, rather than fork out their earnings for shared rental accommodation. Whether you are worried about how you will meet your financial commitments in the future or you just want to make sure that you can uphold a certain standard of living, complete with winter and summer holidays, it pays to do some financial planning now. The benefits don't just apply to older parents; they are applicable to everyone, regardless of age or how much money you have. Good financial planning can help you:
- Protect your family with the right type and amount of health, property and life insurance;
- Plan your spending and saving;
- Plan your retirement;
- Secure your house with the right level of borrowing and best mortgage rates;
- Build your assets through smart investment;
- Find the right combination of assets based upon your attitude to risk and your financial position;
- Obtain an objective assessment so you can make informed decisions;
- Save money through tax incentive schemes;
- Keep you on track by monitoring your investments in a changing market; and
- Have the peace of mind.
It's also important to think ahead about how you would cope if you or your partner lost your job, your business took a downturn, or at worst, one of you became seriously ill or died unexpectedly early. Would one of you be able to cover your mortgage, council tax and utility bills so you could stay in the family home? Actually, it's never too early to address the issue of a Will, regardless of how uncomfortable it makes you to think of your mortality. Make sure that your partner and children are provided for appropriately, especially if you are not married.
What you should look for in a financial advisor:
- (S)he should be fully independent, so that her recommendation of financial products is objective and based upon your needs;
- A free, no-obligation telephone consultation
- Confidentiality
- Good rapport and ease of communication
- Registration with the Financial Services Authority
It is true that having a personal financial advisor is very much important these days, but most of them fail in choosing one. There are many fake financial advisor out there. If you have found one good financial advisor with you than whole life you don’t need to worry about, therefore I made a good online friend who is professionally financially advisor.
Posted by: financial planning advisor | October 31, 2011 at 09:08 AM
Indeed. The future is unknown, and it's easy to feel uncertain at times. Nonetheless, at the present, it's valuable to plan, to prepare for the future that's waiting for you. Your finances is the key to securing peace of mind as you grow older.
Posted by: Selena Manchester | November 25, 2011 at 02:24 PM