Today to support Financial Planning Week are some top tips from our paraplanner Danielle Knowles for young families saving for their future whilst looking after their loved ones…
I am Danielle, a 37-year-old mum of two to Charlie 5 and Daisy 3.
Working in financial services makes you aware of the importance of saving for your future and ensuring you have protection in place for your family.
My top tips are:
- Set up a Stocks and Shares ISA
- This is a good tax-free savings vehicle. We use ours to save for our children’s future such as buying their first car, university fees or deposits for their first home. Although these things seem far away, you do not miss a little amount per month, which over time will make a nice lump sum.
- Join your company’s pension scheme
- Getting a monthly contribution from your employer is such a valuable benefit. If you match this with your own contribution, even a small percentage will build up over time and make a significant difference to your retirement. The tax benefits of pensions are fantastic, as you get tax relief on the contributions and when you take the retirement benefits, 25% is tax free. Your pension can also be passed on to your beneficiaries without being included in your estate, if you die before your 75th birthday your pension can be passed on tax-free.
- Set up protection policies
- By doing this you can be confident that your family will be looked after in the awful (and hopefully unlikely) event, that something happens to you or your partner. We personally, have protection to pay off the mortgage in the event of death. We also have family income benefit with critical illness cover, which pays out in the event of illness or death. Although it might seem an expense you do not want to pay out now, it may prove invaluable in the future, and will give you peace of mind.
Don’t miss the opportunity to book a free 1-hour online chat with one of our qualified financial planners. Email Neil Cowie for a time slot here: firstname.lastname@example.org