Five steps to building a successful investment plan.

Five steps to building a successful investment plan.

Whether you’re saving for your future retirement or building a university fund for your teenager, a smart, diversified investment strategy is essential. Get educated and get ready for hard – but rewarding – work, with these key investment management steps.

How often should review your financial plan?

Financial planning is an ongoing process that needs to shift and change in line with your life circumstances and decisions. In the same vein, a financial plan is not a once-off project – it is a road map for how you manage your wealth today and in the future. And that means it needs to be monitored and reviewed on a regular basis.

In general terms, you should review your financial plan once a year, preferably with the help of a trusted independent financial adviser (if you don’t have one already, read this). Unless an unexpected and life-changing shift occurs, this will allow you to take into account the common changes that happen as you grow older, move on in your career and acquire more wealth or responsibilities, and tailor your plan accordingly.

What to take into account when it comes to a review:

1. Events that might trigger a review sooner than expected. These include life changes like getting married (or divorced), having a child, inheriting an unexpected sum of money, moving to a new country or into a new role at work, and achieving a financial goals (such as debt settlement) sooner than planned.

2. Changes in income and expenses. Your budget has a large role to play in your financial plan. And this goes beyond your household budget to how you allocate funds in your savings and investment portfolios. As you go through changes in income and cash flow, adjustments might have to be made to your standard of living and financial commitments.

3. Defining long- and short-term goals. A solid financial plan takes into account your financial goals in both the short and long term. It’s important to review your goals regularly and monitor their progress, noting what obstacles are preventing you from reaching them within allocated timelines. Be flexible and don’t forget to factor in inflation as this will have a significant impact on income and expenses.

4. The state of your investment portfolio. Your investment portfolio should be reviewed more than once a year. Learn how it works and keep tabs on what is going on in the markets. Speak to your financial adviser about what you are investing in and why so that you can ensure you are getting the best possible returns. Take time to learn about the importance of investing, review the fees, performance and suitability of your investments in relation to your goals.

A review of your financial plan acts as a financial health check and can help ensure you are growing and protecting your wealth in the best possible ways. So it’s important to keep it up to date and to make changes as required. Need expert advice on how to best implement and manage a financial plan? The team at TRG can help! As independent advisers with expertise in insurance and investment, we are perfectly positioned to partner with you on your wealth journey.

Want to know how investing can change your financial plan for the better? Download our Investment Guide and learn more.

Five life events that will change your financial plan.

It is often said that nothing is certain in life except death and taxes. We’d like to add ‘change’ to that list. Whatever happens in your life, it is sure to change over time, especially as you make choices that affect your financial future, causing a shift in your plans for how you are managing your wealth.

When it comes to key financial moves like saving or investing, a change in your life circumstances can have a major impact on your financial plan. While certain changes, such as a sudden death or illness, are unpredictable, there are other life events we can prepare ourselves for so that we are better equipped to deal with our new situation. Below, we’ve outlined five major life events that could alter your financial plans, meaning it might be time to review them with the help of a trusted financial adviser.

Life events that could alter your financial plans for good:

1. Buying a property. Renting is all good and well but the time will probably come when you want to buy your own home, add to your property portfolio or invest in a business premises. Any property you own needs to play a vital role in your investment and estate plan. Not only might you have increased bond payments to add to your budget, you will need to consider costs like insurance fees. You will also need to clearly title each property and review your beneficiaries in the case of your death.

2. Tying the knot. Getting married is a major life shift on many fronts. Financially, there are a number of implications and this is a good time to update and consolidate your financial plans so that you can prepare for the future as a couple. Consider how you will manage financial accounts, expenses and assets like property. And don’t forget to revise your estate and health care plans, as well as update your investment strategies to hit joint long-term goals.

3. Starting a business. Have you decided it’s time to go out on your own? Starting a new business can be an exciting but daunting prospect. To protect your financial future and get your new venture off the ground, you will need to review your investment and saving strategies to make sure you create the money you need to reach your goals. You will need to choose the appropriate business structure, account management system, and insurances, as well as consider an exit and succession plan.

4. Receiving a large windfall. Whether it’s an inheritance, winnings, or a pay-out, receiving a large amount of cash can be a welcome injection into your financial plan. It can also be too easily squandered. Consult a trusted financial adviser to ensure you understand the tax implications of your windfall and how you will handle it after that part has been settled. Will it be best used to settle debts, make a large purchase or to grow your investments?   

5. Time to retire. Leaving behind your work to enjoy your golden years can be an exciting but also stressful experience, especially as in today’s day and age, many people spend up to 30 years or more in retirement. While you’ve probably already started to plan for your retirement, you will need to take into account how best to shift your savings and investment plans to accommodate changes in your circumstances and risk tolerance, as well as health care and relocation costs.

Investing strategically is an important part of solid financial planning, whatever stage of life you’re in or changes you’re facing. Need help putting in place the best investment strategy for your needs? Talk to us. As independent advisers, we can help you make the most of your wealth journey.

Want to start investing in your financial future? Download our Investment Guide to learn more.

Three important reasons to start investing now.

Three important reasons to start investing now.

Financial saving is an uncontested necessity. How much – and how early – one begins saving, however, is less concrete. One thing is still certain though: the sooner you start saving, the better. Which means it’s time to stop procrastinating. Whatever your deterrent (perhaps the market seems unreliable, or you feel you need more expertise to invest wisely), it’s costing you. Experts estimate up to 40% of individuals experience a financial loss due to delayed investment.

How to find the right independent financial adviser for you.

How to find the right independent financial adviser for you.

Congratulations – you’ve decided that you need an independent financial adviser (IFA). An IFA can help you manage your wealth journey, from the time you start putting in place a financial plan until you enjoy your well-earned retirement.

Do you really need an independent financial adviser?

Do you really need an independent financial adviser?

If you want to be not just financially stable but prosperous (to be able to use your money to achieve your dreams and aspirations for your family) then you need the help of an expert. You need an independent financial adviser (IFA). Many people think that they need to have complicated finances, great wealth, or special circumstances to enlist the help of this kind of professional but that is simply not the case.

Playing retirement catch-up? Start here.

Playing retirement catch-up? Start here.

Planning and saving for retirement is essential if you want to enjoy a stable and prosperous financial life into your later years. And, with more people living longer than ever before, you will most likely enjoy a much longer retirement than previous generations – a retirement in which you will not be working and generating an income. Hence, the need for retirement planning and the wisdom behind the advice that it is never too early to start planning for retirement.

FYI – Top investment management tips for five major life stages

FYI – Top investment management tips for five major life stages

Investing wisely and in line with your financial needs is an essential task for those who want to enjoy financial stability and prosperity at every stage of their wealth journey – essentially from the time you start earning and managing your own money and into your retirement.

20, 30, 40, 50 – Here’s some wealth management tips per decade.

20, 30, 40, 50 – Here’s some wealth management tips per decade.

Money will be an essential part of your daily life for your whole life, and as an adult, how you manage your money will have an impact on your security, health, and happiness. That being said, research shows that only 60% of home-owning adults take an active interest in managing their finances or even have a monthly budget.