Holistic financial planning is a long-term prospect. It is based on an understanding of a client’s financial position and their goals and aspirations, as well as the building of long-term relationships.
A financial planner can be there, by your clients’ side, during many key life events, adding value both financially and emotionally.
Marriages, deaths, home moves, new business opportunities and sudden windfalls could leave your clients in need of financial expertise, and vulnerable to the ramifications of not getting the advice they need.
Here’s a look at some key life events your clients could experience and how Boolers can add value at these points, and beyond.
1. Helping to manage a sudden inheritance
Receiving a large sum of money in one go has its challenges. Whether the money has come from an inheritance or elsewhere – such as a property or business disposal – your clients will have tax implications to consider, as well as thinking about the best way to manage their windfall.
Recent figures published in the Independent suggest that only around half (52%) of people are confident they would know what to do with an investment if they inherited one. The survey found that 8% of respondents would leave an inheritance in their current account, with 38% confirming they would put it in a savings account.
With interest rates at historic lows and inflation on the rise, these tactics could lead to substantial losses in potential growth and see the money lose value in real terms.
Seeking professional advice will allow your clients to make the most of their inheritance. This might mean using it to pay off high-interest debt or investing it in a bid to beat inflation, as well as managing the inheritance tax-efficiently.
2. Helping to protect new homeowners and their families
Buying a home and starting a family are key life milestones for many of us. As huge financial decisions, the need to protect these assets can’t be overlooked either.
Figures published in FTAdviser in June 2021 suggest that nearly 6 million UK adults have bought – or considered buying – life insurance, as a result of the coronavirus pandemic.
Life insurance becomes increasingly important once your clients have a mortgage. A payout could cover existing debt and ensure your clients’ families still have a roof over their heads if the worst happened and the main breadwinner was no longer around.
Accident or illness – serious enough to prevent your client from working – could also leave your clients unable to keep up mortgage payments and risk losing the family home.
Expert advice can help to work out where gaps in cover exist and the best products to fill those gaps.
3. Helping to protect your clients’ business
The coronavirus pandemic has made abundantly clear the need for Business Protection Insurance. Whether your clients have a new business or one they have navigated through the pandemic so far, professional advice can make a real difference.
We can help to ensure that cover is appropriate and adequate, providing stability and reassurance should the worst happen.
Your clients might choose from several different options.
Business Loan Protection can be used to cover the cost of debt – such as a commercial mortgage, a business overdraft or an individual’s personal investment in a company. This should help your client to pay off company debt if a business partner died.
Your client’s business will likely be built around just a handful of key personnel with the key skills and knowledge needed to successfully run the business. The loss of any one of these people could have a devastating impact on your client’s business and their ability to keep it running.
Key Person Protection is life insurance designed to pay out if a key member of a business dies. Having it in place could give your clients peace of mind that they would be able to keep their company running should the worst happen.
Share Protection, meanwhile, allows your client to buy back a deceased colleague’s shares, helping surviving shareholders to retain control of the business.
4. Helping a client manage their estate planning
In the 12 months to June 2021, the Treasury’s Inheritance Tax (IHT) receipts totalled nearly £5.7 billion. This is the largest amount ever for a 12-month period (the Office for Budget Responsibility confirms that in 2019/20 IHT raised £5.1 billion).
Helping clients to manage wealth in retirement, while helping them to pass money to the next generation tax-efficiently, has always been a challenge. The government’s freezing of the IHT nil-rate band in the March Budget has made the task that much harder.
As house and share prices continue to rise, more people than ever will exceed the threshold over the next five years.
At Boolers, our vast experience and expertise can help your clients to manage their wealth, providing them with their dream retirement as well as allowing them to help the next generation.
Get in touch
There are many life milestones and unexpected events that could see your clients become vulnerable to money mismanagement.
Sudden windfalls can have serious tax ramifications if handled badly. As clients begin to build a family or a business, they will find themselves needing to protect those financially dependent on them.
If you have clients who would benefit from expert financial advice, please get in touch. Email enquiries@boolers.co.uk or call 0116 240 7070.
Please note
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.
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