Steps 3 & 4: Time to Take Stock | Your Handy Guide to Planning for the Future

We’ve looked at your spending and what you want to achieve. Now you can assess exactly what wealth you have to work with. First, let’s look at what cash you have at your disposal. Make a list of the balances from all of your bank accounts – you can include money you have in ISAs or Premium Bonds here too. 

Next, you’ll need to pull together details of other assets that you can get your hands on. This is most probably your individual pension pots, along with any Stocks and Shares ISAs. And finally, you’ll need to add in the value of any properties you own, but don’t forget to consider any liabilities too.  

We recommend doing this as a couple or household where possible. Add everything up together and the final total is your ‘net worth’. 

“Fortitude really helped me to gain a sense of clarity. Their structured approach is a massive benefit and it really gave us a good understanding about what we could or couldn’t afford to do next”.

– Phil, Financial Planning Client

STEP 4.  WHAT’S ROLLING IN? 

This one is all about seeing what money you have coming in on a regular basis. Make a note of your salary (if you’re still working), along with interest from your savings accounts and any investment income (also known as dividends). 

Once you’ve dealt with the here and now, you can then think about what income you might have in the future. 

Obviously, there will be your pensions. Your state pension will be available when you’re 66 or 67 (depending on when you were born) but you’ll be able to access your private pension pots much earlier normally from aged 55. Benefits can be taken as income only, either as a guaranteed lifetime annuity (regular payment) or as flexible income through Flexi-Access Drawdown. Alternatively, you can take part of your pension as a tax free lump sum (normally up to 25% of your fund) and the ability to take the rest as flexible income now or in the future, which is generally more popular.

Before making any decisions about when to start taking money out of your private pensions, it’s worth taking advice as there will be tax implications that need careful handling. 

Finally, you might also receive other sources of income such as financial gifts from family, or possible inheritances.  

“Financial Planning has given me the freedom to make choices. That’s why I find it such a powerful discipline.” 

– Yvonne, Financial Planning Client

Next week we’ll be bringing you ‘Step 5: Many Happy Returns’.

If you can’t wait that long and would like to read the series in full right now, you can download the entire guide here.

We’re raring to go, so why not give us a call today? We’d love to hear what the future looks like to you and find out whether we’re the right fit to help you get there. 

Contact us at theteam@fortitudefp.co.uk or call us on 01327 354321 to start the conversation.