The two most common financial planning questions we’re asked are…

As you can imagine, we’re asked a lot of questions by clients. We are, of course, here to answer them, but it pays to be prepared! Here then are the two questions we’re asked most often, so that, if you haven’t answered them already, you can start to think about how the answer might work for you.

When can I stop work?

Deciding on a retirement date can, initially, be mainly an emotional choice. You might just feel ready to stop working, or always have had an age in mind where you no longer wanted to have to go into the office every day.

When we get asked this question however, the financial planning approach is to match your emotional targets with your financial ones.

Retiring from work means that you will be financially independent. You will no longer exchange your time for money. Instead, your lifestyle will be funded by your existing finances, likely to be a mixture of the state pension, your private pensions and savings and any other funds you have or are likely to create (by selling your house, for example).

By looking at what you want to do in retirement, and how much those things cost, we can arrive at a figure and match that figure to a timescale. It’s the perfect blend of delivering the emotionally chosen retirement date that you want and ensuring that you can continue to live your ideal lifestyle!

Can I help the children out and stay on track with my own financial plan?

Questions around passing money on from generation to generation are common, so if you, a friend or a family member are wondering the same then don’t worry: it’s the second most common question we’re asked!

The solution is very similar to the above; planning out your own plan first and then assessing how different things (such as giving a large gift to a child) might impact that plan.

There are several common moments when you might want to transfer wealth, which are all worth considering;

  • for the purpose of education
  • at the point your children become financially independent from you (for a house purchase, for example)
  • on the event of your death

These common instances can all be planned for, to ensure that wealth passes to your children in the proper, efficient manner, rather than leaving you to answer each question as it arises, uncertain how it could impact your own finances. For those with younger children, we can’t promise to answer the eternal question about how much pocket money you should give… but we can help in other ways!