Life is busy, we get that; ours is no different.
That’s why there are some financial jobs many of us put off, often until they are too late. Here’s our top five that you shouldn’t put off any longer.
1. Make a will
If we were writing a traditional, cliché-ridden article, about wills, this is where we would trot out the “No one likes to think about death” line.
But we won’t, you can read on assured this is a cliché-free zone.
There are many good reasons though for making a will. Here are three:
- If you have children, a will allows you to nominate guardians for them in the event of your death. If you don’t make a will, a court will ultimately decide who looks after your children when you die
- It allows you to split your assets in line with your wishes, not those of the Government, which is effectively what happens if you die without a will
- A will can help to reduce the Inheritance Tax (IHT) your beneficiaries pay on your death
If you haven’t already got one, or it is out of date, and you only take one action after reading this article, please let it be making a will.
2. Check your mortgage interest rate
For many people, their mortgage is their biggest monthly outgoing.
The demands of day-to-day life, often mean you overlook the letter from your mortgage lender telling you that your current deal is coming to an end. This usually means your payments rise.
Unless you are 100% sure that your current mortgage deal is the most competitive available, it’s worth checking that there’s not a better option out there.
Reducing your monthly mortgage payments isn’t the only reason to check your mortgage deal. Keeping them low, by moving on to a different deal after yours comes to an end, is another good reason. As might moving to a fixed rate if you think interest rates may rise in the future, or you want the stability that comes from a mortgage payment which can’t change.
3. Review your ‘what if’
Let’s face it, if your mortgage is so large that you need both household incomes to pay it each month, or have children, there really is no excuse not to have the necessary protection in place should you become ill or die.
The usual excuses of:
- “I can’t afford it”
- “It won’t happen to me”
- “Insurance companies don’t pay out”
are just that, excuses. We all know, in our heart of hearts, that you can, it might and they do.
So, if you haven’t reviewed your insurances recently, or have moved to a new house without doing so, do the responsible thing and get in touch. We promise to make insurance as painless as possible.
4. Look up your State Pension age
Do you know what WASPI is?
Women Against State Pension Inequality (WASPI) is a group set up to campaign against the rise in the State Pension Age for women. Whatever the rights and wrongs of their campaign, it highlights an important issue. Ignorance of your State Pension Age, however it occurs, can lead to future financial hardship.
For most people the State Pension is the foundation of their retirement income. To undertake any meaningful retirement planning you need to know how much you will get, and when.
These days, it’s easy to find out, simply click here and complete a State Pension forecast.
5. Check your savings returns
Low interest rates over the past decade have led to inertia amongst savers.
Why bother moving accounts if interest rates are so derisory?
Simple, because inflation is eating away at your savings every day, and it’s a beast which is getting greedier by the month.
The rate of inflation is currently 2.3% as measured by the Consumer Prices Index (CPI) and if the predictions are correct, it will rise even further over the course of 2017 and into 2018. That means, if the interest rate you receive on your savings is lower than the rate of inflation, you are losing money in real terms. Sure, your statement shows an increasing balance, but the buying power of that money is falling.
The answer? Find interest rates on savings, or returns on investments, which beat inflation.
There’s another good reason to review your savings too. Over the past few years, returns on many popular National Savings & Investments (NS&I) accounts, including Premium Bonds, have fallen significantly. These are no different to any other savings account, you should check the interest rate regularly.
Find the time
Finding the time to review your personal finances isn’t easy.
If only there was a solution, an adviser perhaps, who could review your mortgage, savings, protection and retirement plans, whilst recommending a solicitor to help you make a will,
Funnily enough, there is, and that’s exactly what we do.
Sure, we are known as mortgage specialists, but our advisers can do all of the above and more, saving you time and perhaps money too. Either way, you’ll certainly end up in a stronger financial position.
It all starts with a call, so let’s not procrastinate any longer, call us on 0207 808 4120 or email enquire@london-money.co.uk and let’s get to work.