Following up from our last post which looked at the reasons why some people refuse to seek financial help, we thought it would be a great idea to cover when you should seek financial advice.
Because we provide personal financial planning in Lancaster, our advisors aid people who have come to us for help at various different stages in their lives with very different financial situations. Although you may not feel like you need financial help, it is worth looking at the benefits that come along with seeking this help, especially when you are making a big financial decision.
So, when should you seek financial advice?
When You Have a Lump Sum of Cash That You Want to Invest
If you have a large sum of money that you want to invest, it is understandably daunting when it comes to knowing what to do with it.
No matter whether this sum of money has come about through savings which have accumulated over the years or simply been left to you and you had no idea that such an amount was heading your way, it can be incredibly difficult to know how to deal with the money and the tax that may come along with it.
That’s when a financial advisor is crucial. Advisors will be able to help you define long term goals for what you want the money to achieve based on your personal and financial situation, and ensure that you are making the sum of money as tax efficient for yourself as possible.
You Have Numerous Pension Plans
Although having multiple pension pots isn’t necessarily a bad thing when it comes to your financial future, it can make it incredibly hard to manage and understand your finances now.
You may be planning to merge your pensions into one place and manage them there, but it is important to understand the implications of doing so. There may be limitations and sacrifices that you must make to be able to move your pensions, so it’s worth checking in with a financial advisor who will be able to look into your pension policy documents and alert you to any implications that may arise, and advise you on what options you can take to help you plan for your retirement successfully.
You never know, there may even be benefits to your pension policy that you may not have known about!
Determining If Your Pension Will Generate Enough Income for You
With so many changes occurring in the pension world recently, it can be extremely difficult to know what your options are or even whether your current pension scheme will generate enough income for you to live off during your retirement.
Even though the freedom of what you can do with your pension has expanded, there are guidelines in place which you may not fully understand.
Financial advisors can look at your pension plan and help you calculate what your pension will be ahead of time to ensure that you will have enough income to live off when you retire. We can also offer advice on the best methods of drawing your pension; from secure income to flexible income or a mix of both, financial advisors are available to give you the best advice for your personal circumstances.
Our list contains just some of the situations where we would recommend seeking financial help with your money. There are many other circumstances where financial advice would be valuable, if not essential.
If you feel like you could benefit from a chat with one of our financial advisors, contact us today by calling 01524 416872. Be sure to follow us on Facebook, Twitter and LinkedIn to stay up to date with all our latest financial news.