Making a financial plan: tips from Elfin and Preferred Banking
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You can also make an appointment today to create a financial plan.
What is a financial plan?
Yvonne: “A financial plan is a document, a living document, which sets out your current situation and where you want to be in the future. We’ll look at your income, expenses, any debts and investments, and explore your dreams or wishes for the future. How can you achieve them? What do you need to do that?”
What should I do if I want to retire early?
Yvonne: “A financial plan looks at how much capital you need to retire early from a certain age. And if you want to retire early, will you draw your pension early or use your capital to cover your outgoings? My role as an adviser is to tell you about your options and explore how you can achieve your dream.”
Aside from savings and pensions, what else does a financial plan cover?
Yvonne: “I think it’s important to seek the right balance between putting money aside, investing and tax-efficient saving for your pension. And then there are things like: what happens if you or your partner die? It’s not a pleasant thought, but it’s important to consider. A financial plan covers all those eventualities.”
Is it essential to have a financial plan?
Yvonne: “Not at all, but I do think it’s a way of caring for yourself. That’s because it shows you how you’re doing and where you’re headed. It gives you guidance.”
Say I’ve written this plan. Is that all I need to do?
Yvonne: “I’d suggest you review your financial plan once a year to check your progress. You could decide to update it every three years to reflect changes in your life or in the law. It’s a work in progress.”
How do I start creating a financial plan?
Yvonne: “Very easily: just make an appointment with a Preferred Banking adviser. You log in with DigiD and upload your details into an interactive program. We’ll look at all that information together and discuss the most important points. Please reach out!”
Want more tips or information about receiving an inheritance or other financial topics?
