Family Financial Planning during Covid-19
Around the world we find ourselves adjusting to life during these stressful times. Life is always uncertain but human ingenuity is strong. We don’t know when some degree of normality will return, but it will. During this event some of us may find that we have extra time on our hands. Creating a plan of action might be a good use of that time.
Long Term Thinking
At times like these, Financial Planning comes into its own. Uncertainty around income and employment security is a big worry for many people in Ireland today. Tapping into rainy day funds and cutting expenditure may be more in focus than saving or investing. We can only hope that this will be short lived.
Irrespective of what’s happening around us, families still need to plan for the long term; for when we get through this event – resumption of saving, investing and trying to stick to financial plans.
What is Financial Planning?
Financial planning is an ongoing process which outlines your financial goals and objectives, and a roadmap for how to achieve those goals. The plan starts by analysing your current situation: income & spending, assets & liabilities, life & income insurance. The plan is updated on a continual basis as your personal and financial circumstances evolve.
Financial Plans deal with issues important to you and your family. For young families that might start with goals to build an education fund, move to a bigger house or start a pension plan. As time goes by the goals might develop into more detailed investment and retirement planning and eventually estate planning. For everyone it will include having the appropriate amount of life, disability and income insurance.
The current environment might be a good time to assess family financial plans, to talk with your adviser, or consider engaging the services of an adviser to build a plan.
Financial Advice is about MUCH more than just investing
Financial advice sometimes gets a bad rap because people associate it with product selling. Thankfully in Ireland there is a growing understanding that families can get high quality professional advice for a pre-agreed fee without old-style product selling.
I believe all Financial advice should start with a plan designed specifically for each individual family. This would involve a full analysis of your current situation and a lifetime cashflow projection. A good Financial Planner will also offer advice on saving and investing. But he or she can only do that with a plan in hand first. Each family situation is unique, with its own individual set of financial goals & objectives.
As we go through life those goals and objectives often change. This may be driven by changing family dynamics, career progression, our age and numerous other factors. When this happens it’s important to ensure that what we’re invested in remains appropriate for those changing goals.
Conclusion
This is a time to look after ourselves and our families. I believe that should include a plan to help secure their financial future.
I look forward to being able to meet current and prospective clients in person before too long at my office or their homes. Until then I am fully operational from my home office and will continue to rely on Skype, Zoom and telephone conversations.
John McWey,
Financial Planner,
Ardbrack Financial Limited.
021-4773833 / 083-4115277 jmcwey@ardbrack.com
Disclaimer: The content of this article is for general information purposes only. It does not constitute tax or investment advice as it does not take into account the investment objectives, knowledge and experience or financial situation of any particular person or persons. You are advised to obtain professional tax and investment advice suitable to your own individual circumstances. Ardbrack Financial Limited makes no representations as to the accuracy; validity or completeness of the information contained herein and will not be held liable for any errors or omissions.
