Planning in Lockdown

Lockdown is likely to have either left you with a lot, or very little, time on your hands.

 

If you’re in the former group, you may want to use the time to tick off some of the boxes on your financial health check list.

 

Here are some things that we’d encourage you to consider. Let us know if you’d like to discuss any of these in more detail.

 

 

Make or update your will and Lasting Power of Attorney

 

The current times only highlight further the need to have an up to date will and LPA in place in case the worst should happen. Most of us know how important it is to have a will and keep it up to date but still many of us don’t get round to it.

It’s especially important if you live with someone and aren’t married to them as you won’t automatically inherit from each other if you don’t make a will.


We often send clients to TVEdwards (www.tvedwards.com) for will writing – they offer a great quality service at reasonable cost. Let us know if you’d like and introduction, or you can email their will specialist, Patrice Lawrence, directly at patrice.lawrence@tvedwards.com.

 

Check that your pensions are in trust, with a named beneficiary

 

It’s important to make sure that your pension policies are written into trust, so they don’t pass back into your (inheritance taxable) estate on your death.

It’s also vital to make sure that you’ve named a beneficiary on your pension, so that the trustees know where you’d like your pension to be paid upon death. Let us know if you’d like our help with this.

 

Review your old policies

 

With markets as volatile as they are, it’s more important than ever to make sure that all of your pensions and investments are in the right place and invested in line with your risk tolerance. Getting them invested in the right way now will be important to help manage market volatility, and make sure you’re able to take advantage of the market recovery when it comes. We can help you look into your old policies and make sure they’re in the best shape for you. 

 

Check that you’ve got protection in place

 

It’s a good time to check that you’ve got sufficient life cover, critical illness cover, and income protection in place. You might want to see how much your employer offers, and consider whether you should have some private protection in place as well. We can help you look into whether your old policies are still appropriate for your needs, and we can help you set up new policies if you think you’ve got a gap.

 

Consider making contributions

 

If you’ve got a long time horizon then now might be a good time to add some funds to your portfolio. We’d be happy to explain to you the merits of “pound cost averaging”.  Furthermore, the pension allowance has been increased for earners over £150,000 (who previously had their annual allowance reduced), so you might want to add some more money to your pension to take advantage of the change. Let us know if you’d like our recommendations.

 

Do get in touch if you’d like to discuss your financial planning, and we hope that you are keeping safe and well.