Killik & Co specialise in investment advice and helping people achieve their financial ambitions, alongside Killik Explains, where they host seminars, how-to guides and explanations for those wanting to learn more about how to control and work their finances. Tim Bennett, Head of Education at Killik & Co, shared his top tips with Express.co.uk on improving financial fitness throughout one’s’ life.
At any age
“There are certain things that everyone should be doing to improve their financial health, regardless of age, or stage in life,” Mr Bennett said.
“My top three are;
• Creating a financial plan that factors in ‘rainy day’ emergency funds, recognises large future cash drawdowns and maximises long-term wealth building
• Being aware of worst-case scenarios and putting the relevant protection in place to mitigate them
• Topping up tax-efficient savings (such as annual contributions to an ISA or pension) on a regular and timely basis.”
These are the essential basics that should be a part of anyone’s financial plans regardless of whether they’re in retirement or paying off student debt.
However, as one journeys through life their financial outlook and general expectations change, and so too should their financial plans.
The Youngsters (18-30)
Mr Bennett commented: “At this age, financial priorities should be built around stabilising their overall financial position and putting a financial plan in place for the future.
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“Specific goals ought to include;
• Paying down expensive debt, especially personal loans or amounts outstanding on credit cards
• Budgeting on a regular basis to maximise the amount they save
• Saving tax-efficiently and the long-term by, for example, making use of an employer pension and building up an ISA fund in stocks and shares.”
The Sandwich Generation (30s-50s)
“Often caught between the demands of growing children on the one side and ageing parents on the other, their focus should be on;
• Sorting out key documentation for themselves and their parents, such as wills and powers of attorney
• Thinking about life after work and putting the appropriate plan in place to fund it
• Discussing with older family members both their priorities and how they may be able to support younger generations affordable and tax-efficiently,” Mr Bennett continued.
The Older Crowd (60+)
“At this stage, planning is about striking the right balance between someone’s own needs and ambitions and potentially those of younger family generations.
“As such, a ‘to-do’ list should start with;
• Maximising sources of income to fund a fulfilling life after work
• Planning for the later years both in terms of lifestyle preferences and costs
• Gifting to younger generations of the family in a tax-efficient manner,” he concluded.