Do You Have A Long-Term Financial Plan?

Updated: Jan 17

In a recent blog post we talked about the importance of financial wellbeing, and ways that we can achieve it. Today, we’re going to explore an important factor of financial wellbeing - have a long-term plan. Did you know that according to the Office for National Statistics, a baby girl born today has almost a 20% chance of living to the age of 100? With life expectancy increasing with each generation, it’s more important than ever to ensure we have a lifetime financial plan in place.

A mere one in three of us have a financial plan that extends past a year. If you’re one of these people, don’t worry - we can help. A good financial plan takes into consideration two things: firstly, investment goals, and secondly what makes us happy and gives us a sense of purpose. It’s only normal for plans to change as we get old - for example you might love going to watch live music in our 20’s, but prefer to travel in your 40s.

We’re all different and therefore have different investment goals. Some common goals include:

  • A dream holiday

  • Relocation in retirement

  • Caring for parents

  • Donating to charity

  • Financial security in retirement

  • Leave an inheritance

  • Retire early

  • Pay for future care needs

  • Invest in self improvement such as classes

  • Start a new business

  • Purchase a property

  • Pay for children’s education

  • Career change

Another important part of having a long-term financial plan is to have a valid Will in place. As your circumstances and goals change over the years, it’s very likely that your wishes included in your Will may change too - that’s why it’s always important to keep your Will up to date to reflect your current situation.

It can be really useful to write down your plans and keep them up to date as your situation changes. When it comes to writing your long-term plan, it can be helpful to consider the following:

  1. Things that you want to do that bring you joy and purpose in the next 5, 10 or 15 years. For example, maybe you want to tick off some places off your bucket list.

  2. Your money goals - this could be purchasing a property, paying off all your debts or having enough to retire early

  3. Think about what you want to prioritise and consider time frames. For example, when would you like to pay off your debts? How much do you want to increase your savings by and by when?

If you would like information on how you can protect your finances, get in touch with Kindred Estate Planning today.