Lonsdale wealth management independent financial advisers recommend talking to family about finances
Use Talk Money Week to involve your children in financial planning
Thursday 12 November, 2020
Talk Money Week is an annual campaign to get the nation talking about money. This year the campaign runs from November 9th -13th. The Talk Money Week encourages everyone to discuss money openly to improve your financial wellbeing. The goal is to make discussing finances commonplace.
UK Adults often aren’t comfortable talking about money
The Money and Pensions Service released a new study that surveyed 5,200 people across the UK and reviewed their financial behaviours as part of Talk Money Week. Although 48% of UK adults admit to regularly worrying about money, 55% aren’t comfortable talking about money which equates to 29 million adults. Over half (60%) of the UK adults that responded to the survey said the global pandemic had made them more worried about money.
Why we should all talk money?
Research shows that people who talk about money:
- make better and less risky financial decisions
- have stronger personal relationships
- help their children form good lifetime money habits
- feel less stressed or anxious and more in control.
Allan Ross, independent financial adviser Ware, Hertfordshire and SOLLA member said:
‘Building money conversations into our everyday lives also helps us build financial confidence and resilience to face whatever the future throws at us. As a financial adviser I encourage my clients to talk openly about their finances in order to give them the most appropriate financial advice. If we don’t prepare our finances in advance we can struggle if we’re affected by a life event or income shock, such as the pandemic. However, sometimes people find it hard to talk about their finances as they are not used to discussing their financial affairs openly. Talking about money can be very important as it can support our health, relationships and ultimately our wealth. Covid 19 has made it more important than ever to discuss finances as people are losing their jobs or being furloughed and may need to take mortgage holidays or loans to support them through the pandemic.
When to involve your children in financial planning?
Every family is different, and it is a hard to know when it’s the right time to involve your children in your financial planning.
Over the next 30 years the UK will experience a transfer of wealth between generations. As independent financial advisers one of our key roles is to provide inheritance tax planning advice and encourage clients to consider financial planning on a family-wide basis. Our clients’ priority is to plan tax efficiently, so their beneficiaries inherit as much of their estate as possible. We achieve this by working closely with our clients' solicitors and accountants to offer joined up financial, legal and tax planning.
Allan Ross, member of the Ware financial planning team continued:
‘Although our clients want to plan tax efficiently many retired clients might never have discussed their financial affairs with their children or beneficiaries. We encourage them to talk openly to their family or beneficiaries and make them aware of their financial intentions or bring them along to their annual review meeting. We also make sure our clients set up a will and Lasting Power of Attorney. It gives clients’ peace of mind when they discuss the contents of their will with their children or make their children aware who their will executors are and which solicitor acts for them. We provide our clients with a Lonsdale Services Financial Passport where they can keep all their financial information. This document is available to complete and details where all financial information and personal details can be found. The financial passport helps family and friends know what to do and where your assets are kept if anything happens to you. For more information read – Ray McHugh, IFA Barnet recommends clients set up a financial plan. Often when clients take our advice and involve their families in financial planning it helps the family formulate a cohesive financial plan to benefit everyone. When we see our clients’, they often tell us how grateful they are for encouraging them to discuss their finances as there is relief that the family know and understand their financial goals and priorities. Review our brochure If you would like to read more about inheritance tax planning or contact your local Lonsdale Wealth Management independent financial adviser for an initial consultation.
In Summary…
Whatever your financial circumstances talking about money can help you. If you want independent financial advice, please contact your local financial adviser or complete our booking consultation form.
In 2020 Allan Ross achieved the Later Life Adviser Accreditation (LLAA) and became a member of the Society of Later Life Planners (SOLLA) which gives independent recognition of his skills and experience in working with and understanding the needs of older people and their families.
Read more about estate planning and view our estate planning video
Tax, estate planning and wills are not regulated by the Financial Conduct Authority.
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