Financial Planning

4 ways to future-proof your wealth

12th May 2017

The Author: Paul Evans
Paul is both a client adviser and responsible for setting the strategy and vision for United Advisers.

It’s probably reasonably true to say that most people underestimate the value of financial security but, once you have your finances in order, you’ll absolutely want to try and keep them that way.

No matter how thorough and organised you are though, life is still pretty good at throwing unexpected spanners into the works.  Life’s toolbox of wrenches includes sickness, accidents, and unemployment to name a few.

Your income

To protect yourself against instability that can arise from unexpected twists and turns on life’s roller-coaster, it’s a good idea to take a look at investing in income protection insurances – also known as accident, sickness and unemployment cover (ASU cover).

Essentially, this is an insurance that covers you when you can’t work.

Talk to your financial adviser about how and where to get ASU cover; it’s always best to shop around carefully and, as ever, consider your options.

Your mortgage

If you have a mortgage, you already know there are serious consequences if you can’t make your mortgage payments or payments for any loan secured against your home.

While everything might appear affordable and problem free when you start your mortgage or home-loan, no-one ever knows for sure what the future might bring and, for that reason, we think it’s a good idea to have a conversation with your adviser about Mortgage Payment Protection Insurance.

Your savings 

Because of inflation, the money you save may not be growing at the rate you think it is.

If inflation runs at 2% a year, whatever you buy now will cost you 2% more in a years’ time and a savings account with 2% interest would only match the rate of inflation.  This means that the true value of the money in your savings account (in terms of what it can buy you) will remain the same over time, rather than grow.

Always take inflation into account when calculating the growth of your savings, and include estimated potential future inflation rates in calculations of your savings value over time.

Your family

When a family member passes away we are rarely prepared for it, even if we are expecting it; and it’s surprising how many of us fail to ensure our affairs are in order.

Even with the best insurance policies money can buy, issues with a disorganised or undefined estate can cause a whole plethora of concerns and potential financial instability, for the executors and beneficiaries of the estate.

If you do not have a will, for peace of mind alone you should consider writing one. Make sure you get appropriate advice so that you draw your will up legally and correctly.

We understand that protecting your wealth is important and this blog is just a taster of the many facets you may need to consider; if you have any concerns or questions, please get in touch with us.  We will be happy to talk to you about the best solutions for your needs.