This content is for information purposes only. It should not be taken as financial or investment advice. To receive personalised, regulated financial advice regarding your affairs please consult your Financial Planner here at Vesta Wealth in Cumbria, Teesside and across the North of England.
How do you know it’s time to talk to a financial planner? After all, managing your money might feel straightforward, for a time. Those just starting a career after university may be primarily concerned with day-to-day expenses, trying to save a bit each month and possibly paying off some small debts.
However, life is rarely this simple, especially as you progress through key stages such as buying a first home, starting a family or approaching retirement. As your financial needs become more complex, the need for financial advice grows.
Below, we outline four tell-tale signs that it may be time to stop delaying the decision and talk to a financial planner. Doing so costs nothing. Here at Vesta Wealth, our Carlisle financial planners offer a free, no-commitment consultation if you are ready to have a conversation.
Otherwise, let’s dive into the four signs.
#1 More Money Than Knowledge
Some people find themselves in the fortunate position of earning more money, but not knowing what to do with it. Perhaps you’ve had a recent windfall or promotion. Maybe you’ve started a business that has taken off.
What often happens here is “footballer syndrome” – i.e. lifestyle inflation without long-term benefit. You buy a nicer car or house, perhaps without really needing (or even wanting) to. The extra money is simply spent. Or, it sits idly in low-interest savings.
There is so much potential here for you to transform your future. With some careful planning, you could put these additional earnings to work, boosting your financial freedom – e.g. opening up the chance for early retirement later.
#2 Negative Mindset & Emotions
One study found that 45% of UK adults do not feel in control of their finances. Over a third feel worried about their money situation. Many people do not know what is going in and out of their accounts each month.
Savings and assets are scattered about, and debts hang over their minds. Uncertainties plague them about taxes, financial statements and benefit entitlements. It’s a lot for anyone to manage, and it’s little wonder people feel overwhelmed.
This can take a serious toll over time. Speaking with a financial planner can bring a lot of clarity and peace of mind as you start to regain control and perspective. They bring experience, skill and structure to the table, identifying gaps and offering actionable steps to close them.
#3 Major Life Events
Life is full of transitions. Some are planned, but others are unexpected. These include:
- Getting married
- Going through a divorce
- Having a baby
- Buying a home
- Receiving an inheritance
- Changing jobs
All of these can significantly alter your financial landscape, each bringing a unique blend of emotional weight, financial complexity and decisions.
For instance, getting married not only involves gathering a large sum to pay for your wedding day. It also means exploring the subject of joint finances, reviewing insurance policies, making updates to wills or beneficiaries, and more.
Divorce can be even more complex. Here, protection policies need reviewing (again), assets get divided, pensions are rearranged, budgets are renegotiated, and plans must be reassessed for living arrangements and future retirement.
These sorts of events don’t just change your daily life. They impact your financial risk profile, cash flow, insurance requirements and tax obligations. This is where a financial planner can be your trusted guide.
Firstly, a professional can help you preempt the possible financial implications of a future event before it arrives (e.g. having a first child). This helps you avoid getting caught off guard.
Secondly, a financial planner can ensure a high degree of in-built flexibility when designing your financial plan, ensuring it can adapt as your circumstances change.
There is also the added benefit of tax-efficient structuring – e.g. getting a better deal out of IHT (inheritance tax) and capital gains rules.
For instance, if you get married or enter a civil partnership, a financial planner can help you maximise your combined tax allowances, helping your household keep more of its combined income and wealth.
#4 Neglected Retirement Planning
Retirement can feel like a far-off, abstract concept – especially if you are younger. Suddenly, it can creep up on you. At which point, a lot of opportunities have been missed.
Time is your biggest ally when preparing for retirement. It allows compound interest to work greater power, taking pressure off your own income when saving (e.g. into a pension). Here are some tell-tale signs that it may be time to speak with a financial planner:
- You’re contributing to a pension, but you are inconsistent. Or, you do not understand how much is really needed.
- You don’t know how your pensions and other savings are performing (or where they’re even held).
- You’ve never calculated how much income you’ll need in retirement.
- You feel unsure about when you can realistically stop working.
A qualified financial planner can cut through the uncertainty and create a roadmap that’s clear, achievable and tailored to your life goals.
Invitation
We hope this content gave you more clarity. To discuss your own financial plan, please get in touch to arrange a free, no-commitment consultation with an adviser here in Cumbria.
Your capital is at risk. Investments can go down as well as up. Past performance is not indicative of future results. Tax treatment depends on individual circumstances and may change. Content is for information only and not investment advice. Any decision to invest is the reader’s own. Diversification is key to managing risk. Market volatility affects investment values. Inflation erodes savings. Liquidity risks may prevent quick access to funds.