ways to grow wealth

Building Wealth is a Conversation. Protecting It is Another!



Posted on: 4th July 2024

Whenever we meet with new clients around their retirement planning Cheshire, or planning around their estate after passing, the immediate focus is based on ways to grow wealth for later life.

However, whenever anyone talks about protecting wealth, there is slight reluctance in clients to talk about it as much. Maybe from a fear of being sold into something rather than deflecting any talks toward more positive aspects like accumulating wealth, helping children and grandchildren, and having enough money in retirement.

As independent financial advisers Manchester, we offer advice on not putting off talks about the negatives.

Worst Case Scenarios

As humans, we understand the need to insure certain aspects of our lives like our homes, cars, and possessions, but there has been a significant drop in areas like life insurance and others around financial planning. Could it be because it is a dark area to discuss following so much uncertainty in the 2020s so far?

At Haven IFA, our goal is to improve our client’s relationship with their wealth, focusing on what is intrinsically important now and the lifestyle demands they expect from their future. However, we would always advise our clients to consider that life is unpredictable and planning on the worst-case scenario potentially being around any corner.

Life’s Unpredictability

It may not be things you want to spend time thinking about, but what if someone in the family passes away before their time or gets so ill that they cannot work and need around-the-clock care? Many clients may nod their heads that they understand the financial implications of these instances, but many choose not to implement any measures upfront.

Life is unpredictable, and various risks can significantly impact a family’s financial standing. If the primary earner in the household suddenly passes away or contracts a debilitating illness, the rest of the family faces immense challenges to meet the financial requirements. Not only are the immediate plans ground to a halt, but retirement planning Cheshire can be dramatically altered.

Collating all final salary schemes, future state pensions, and income from other pensions and investments may be well enough financial standing to cover your later life expenditure, but what happens if one of you passes away sooner than planned? Do you know how that affects the spousal pension and state pension?

Other Aspects

In the scenario of one person in the household unexpectedly passing, have you considered the additional expenses that come with legal parties around estate planning, will creation, and potential trusts to distribute assets of wealth?

Without proper estate planning early on, legal complexities and disputes among family members may arise, jeopardising the distribution of wealth and putting additional financial strain on the family.

Although they may not feel like urgent conversations, they are ones that you should include to protect your family in case your original retirement planning does not come to pass or is compromised.

Talk with the team at Haven IFA to receive advice from independent financial advisers Cheshire who like to look into all avenues and ways to grow wealth, as well as protect your wealth.