Good conversations always start with “Hi”, “Hello”, “My name is ….” followed by “What do you do?” At this point most people will launch into a well rehearsed and (hopefully!) brief preamble to their occupation and subsequently engage in lively conversation with their drinking buddy.
At least that’s the theory. In reality, a glazed look appears on the face of their buddy and the speaker instantly knows more attention is being paid to the buxom, vivacious lady behind the Bar rather than the conversation. Well let’s put the theory to the test. “I am Kiran Shah, an Independent Financial Consultant.” Did I just see 40 heads swing towards the Bar ?
Well, I do enjoy hearing all the colourful stories about IFA’s and I like nothing better than to rise to the bait (oops... I meant challenge!) and prove them wrong.
Joking aside….. at this time of year conversations with my colleagues are predominantly about the New Year, their business plans and how they expect to make their next million! Inevitably there is also talk of personal resolutions to ‘stop smoking’, ‘lose weight’ and ‘become active and healthy’. In short, people begin a process of PLANNING and REVIEWING. How else are you going to finance that dream holiday in the sun or indeed squeeze into the tiny swim suit you bought to wear on that holiday?
Equally, this process of planning and reviewing has to be stringently applied to your financial affairs.
1) PROTECT YOUR DEPENDANTS. There is never a good enough excuse for not having basic essential items in place such as a Will. This is a must. Without it, our friends at HM Revenue & Customs will see far more of your assets than your dependants.
2) PRUDENT FINANCIAL PLANNING AND TAX MITIGATION. There is little point in being able to recite your businesses profit and loss ledger from memory if you do not know what your own net worth is? Apply those techniques that made you a successful businessperson at home by performing an annual audit of your personal finances.
3) CONSOLIDATION. Holding different bank and building society accounts with small sums is as good as not making your finances work for you. Think about consolidating these accounts to reduce your paper work and earn a decent interest.
5) REGULAR REVIEWS. Policies that were set up some time ago need regular reviews. What was suitable 10 years ago, may not be suitable now. After all, that cute toddler has now grown into a teenager and with that comes an expensive ‘have to look cool’ habit to maintain !
7) TAX-FREE SAVINGS. After paying taxes all these years, make sure you utilise Government tax breaks to the full by making use of Individual Savings Accounts (ISAs). Ensure all your tax allowances are utilised to maximise your savings and minimise your tax liabilities.
9) LIFE / WORK BALANCE Make sure you have a good balance between work, rest and enjoyment. No amount of money is going to help if you do not have the health to enjoy it.
Kiran Shah is the Director of Lotus Benefit Consultants Ltd |
