New Year’s resolutions are as easy to break as they are to make.
But when it comes to financial management, staying disciplined with a few simple steps can ensure your pecuniary prowess is primed for profit.
So while that Christmas gas-powered pogo stick gathers dust, these five financial resolutions for 2019 are gifts that just keep giving.
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Making the most of tax-efficient allowances is the mood music for 2019, so capitalise on Lifetime ISAs for under 40s, the Cash, Stocks and Shares and possibly the Innovative Finance varieties.
But don’t forget that pension contributions remain one of the most tax efficient ways to save.
Investment markets have recently been more volatile than UK politics, so it’s more important than ever to revisit your approach to risk and assess your capacity for loss.
Reassessing your risk appetite helps you put your best foot forward.
Either making or updating wills or powers of attorney ensures that in the event that you pass away or become incapable of making decisions for yourself, the proper legal provisions are in place for your family.
And the cost doesn’t need to be prohibitive — for instance there are several ways to secure cheap or free wills.
Too many families in the UK don’t have life insurance to pay off the mortgage should the main breadwinner pass away — so if you’re unsure where you stand, 2019’s the year to ensure you’ve got the requisite life cover.
If you’re an employee, it’s also crucial you’ve got adequate income protection cover in place to take care of outgoings in the event illness means you can’t continue working.
And if your estate will be liable to Inheritance Tax when you die, it’s wise to review the amount of cover you have — having sufficient cover is a no-brainer, but the Government’s phasing in of the residential nil rate band to full implementation in 2020/21 means you might actually be over-insured.
Last but not least, if your financial adviser has provided exceptionally good service, please refer a workmate, friend or family member to them in 2019.
Great clients are the lifeblood of the financial advice sector and helping those you care about manage their money effectively never goes amiss — it’s nice to be nice.
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