Personal financial planning - an introduction - by independent financial adviser John Bramwell

Who needs it?

Financial planning is important for everyone, whether young or old, rich or poor. Good planning gives you the confidence to know that you will:

Receive the best value for money for your savings and investments.
Avoid paying unnecessary tax.
Have sufficient savings for when you need capital sums, eg. for a new car, university costs or a house deposit.
Have sufficient income in retirement.
Not suffer hardship or a major lifestyle change as a result of unexpected death or illness.
Have plenty of time for those aspects of personal finance that require many years of preparation,
eg. retirement planning or inheritance tax mitigation.

What can I do to improve my situation?

There are many ways that you can help yourself. Some are straightforward and can be done without taking professional advice. Many can be rather complex and/or need professional search capabilities. It is essential that you seek advice in these cases, preferably from an independent financial adviser. See our Money-Saving Suggestions page for a selection of ideas.

What is covered by Personal Financial Planning?

Family protection - The three main areas are: life assurance, critical illness cover and income protection.

Private medical insurance - If illness or accident occurs, then medical insurance may be your best option for obtaining faster treatment.

Savings and investments - There are many ways to save or invest your money, according to your needs and attitude to risk. Savings and Investments.

Children - The financial impact of children on your finances can be unexpectedly large (have a look at our useful links about the cost of living). Some benefits are available but you need to plan for the future. Savings and Investments for Children, Education Funding (school fees planning and paying for a university education).

Life changes - Divorce and redundancy can result in significant changes to your life, and may have many financial repercussions. At these times it is important to review your finances.

Pensions and retirement - Planning and saving for your retirement should start as soon as possible, using pensions and other investments. After retirement you need to ensure your money is suitably invested and you choose the right annuity. Pensions and retirement.

Equity release - After retirement it may become apparent that your income is not sufficient for your needs. Equity release allows you to use part of the value of your home, while you continue to live in it, to supplement your income.

Long term care - The cost of long term care can be quite substantial and the possibility of needing it should be addressed as soon as possible.

Estate planning - Many estates nowadays are liable for inheritance tax, mainly due to the rising value of our homes. Forward planning will help to minimize or even eliminate the amount of tax due. Wills can help too; they also make sure the right people inherit.

House purchase - How to obtain the best and most suitable mortgage available.

General insurance - For buildings and contents, and accident, sickness and unemployment. General insurance.