Financial Planning Our Clients The Bigger Picture Our Commitment Mortgage Consultancy

Home
News

December 2003

PLANNING FOR 2004 AND BEYOND

Question
Now that we are at the end of 2003, the markets seem to have picked up and I would like to review my finances. Over the years I have accumulated various policies more by accident than design – how can I tell whether what I have is sufficient for my needs now and in the future? Do you have any tips on how I can plan for 2004 and beyond?

Answer
Tis the season to be jolly, to spend money like it’s going out of fashion and think long and hard about next year’s personal finances. Acumen Financial Planning Limited in Aberdeen suggests four golden rules to help pave the way for a very prosperous New Year.

Are you an ostrich, an owl or a turkey? When it comes to personal finances, have you a clear idea of what you already have or do you bury your head in the sand?

Rule Number 1 – find out what you’ve got already – dig out that old box at the back of the cupboard and find out what it is you actually have already. You could save yourself a fortune by replacing old, out of date policies. Life assurance rates have dropped over the past few years and pension policy charges have been slashed.

Armed with the knowledge of what you’ve got, you can then plan with confidence for the future. If you need help in this area, fix a time with a qualified financial planner who will help you plan for your future.

Rule Number 2 – work out what you are trying to achieve. One day you will want the option of giving up work and enjoying a comfortable retirement. How much will you need to live on? With lots of press comment concerning pensions you may be wondering how you should plan for your retirement. Pensions should be seen as only one part of your overall planning. Spread the risk by using ISAs and consider purchasing a rental property.

Rule Number 3 – give yourself a break. There are still some great tax breaks available and you should make sure you get your fair share. For example, even if your spouse does not earn an income, for every £78 you invest in a personal pension in their name, the government will top this up with another £22.

Rule Number 4 – get rid of expensive debt. OK, you’ve shopped till you’ve dropped and the plastic is melting. With interest rates on unpaid balances approaching 20% in some cases, get that card paid off as fast as you can. Or find a credit card that will charge you a low interest rate on a transferred balance for six months until you find your feet.
Companies in the Acumen Group include Acumen Accountants and Advisors Limited, Acumen Financial Planning Limited and Acumen IT Consultancy Limited. Acumen Financial Planning Limited are authorised and regulated by the Financial Services Authority. Acumen Accountants and Advisors Limited are registered to carry out audit work and are regulated for a range of investment business activities by the Association of Chartered Certified Accountants but are not authorised and regulated by the Financial Services Authority. Acumen Financial Planning Limited, Registered in Scotland number 215343, VAT Number 894 6221 94. Acumen Accountants and Advisors Limited, Registered in Scotland number 153885, VAT Number 894 6221 94. Acumen IT Consultancy Limited, Registered in Scotland number 284749, VAT Number 859 474862. Acumen Holdings (Aberdeen) Limited, Registered in Scotland number 215503, VAT Number 894 6221 94. Registered office, Commercial House, 2 Rubislaw Terrace, Aberdeen, AB10 1XE.