Covid 19 has had a huge impact across the globe and it has affected lots of people in many different ways. Because of this many of our client’s circumstances have changed and we have had to adapt accordingly.
With that in mind, we have put together some key factors that we believe are the most important first steps towards ensuring your desired financial future.
Adequate Key Protection
Firstly and the most important aspect of a solid financial plan is to ensure that you have adequate key protection policies in place. These consist of some crucial things like having an up to date and adequate will in place to ensure your wishes are met when it comes to distributing your estate when you die. Making sure you have an international life insurance policy, as this will provide those who depend on you with a cash lump sum when you die. Life insurance is especially important if you are the main breadwinner. Also setting up an international health insurance policy which will provide you with coverage should the unexpected happen. Ensure that your provider covers infectious diseases such as Covid -19 when you sign up to a policy. This can be crucial as a lot of policies don’t or won’t cover you for this.
Secondly, Pensions. This is a vital area that is often overlooked. This is because people generally don’t like to think that far ahead, or they assume that they have adequate provisions in place from their company or state benefits from their home country. It is really important to review your retirement plans at regular intervals as personal circumstances often change and need addressing.
Thirdly, Savings. Without proper planning many people find it difficult to fund future costly events such as kids’ education fees, or a future house purchase. The earlier you start, the easier it will be to achieve these goals. Through compound interest your money will accumulate and work harder for you over the years. For example, if you started saving $750 per month for 40 years from the age of 25 until 65 then you’d have a total pot of $1,111,893 (with a growth rate of 5%). The total input for this would be $360,000 over the term. If you started at 45 until 65 and contributed the same input of $360,00 then you’d need to save $1,500 per month for 20 years. However, the total pot at age 65 would only be $608,707. This just goes to show that the earlier you start the better off you’ll be.
These are some of the most important aspects of financial planning, these will be covered in greater detail in future blogs. So, if you don’t want to miss them, please give our page a follow.
There is no one size fits all and each individual will have different needs, which is why we provide bespoke advice based on your personal objectives. If you would like a free no obligation review on how we can help you then please get in touch. Thank you.