While it may be true that there’s more to life than money, when thinking about your family’s future it will be one of the first things that comes to mind. The fact of the matter is that money is incredibly important, useful and one of the main things that a lot of people worry about.
Therefore it is important that you plan carefully for your family’s financial future. As well as ensuring you have enough savings put aside for a rainy day, there are various other factors you need to focus on. Check that you have the following covered and even seek professional financial planning advice.
Save for Your Children
Start saving as soon as possible, whether you’ve already got children or are planning to have some in the near future. There are a range of special junior Individual Savings Account (ISA) available which usually offer the best rates around. For example, up to £4,080 could have been saved tax-free (for the 2015-16 tax year), while you still maintained control over the account, usually until your children are 18.
Another popular way to plan for the whole family’s financial future is through a range of other popular investments. Everything from stocks and shares to bonds, commodities and other assets can be good options, but only if they are managed well. This means diversifying your portfolio, managing risk efficiently and keeping your long term goals in mind. You don’t want to lose it all due to a few quick mistakes.
Inheritance Tax Planning
Inheritance tax is something that cannot be avoided, despite the number of companies claiming that it can (and where it can, the legality will probably be called into question). There are a number of ways that you can legally cut down the amount you will be taxed on to avoid leaving your loved ones with less. Make a gift to your partner, put finances into a trust or take out life insurance as ways to prevent the taxman taking it all.
Write a Will
Having a will is incredibly important to avoid all sorts of legal, financial and social problems occurring once you and your partner are gone. You need to have it legally in writing as to where all the money and assets left behind go, otherwise much of it could be spent on legal fees to sort it out. Setting up a will is affordable and not too time consuming.