Start the new year on the right foot by reviewing and revamping your financial plan.
Instead of the usual resolutions about joining the gym or drinking more water, why not focus on your financial wellbeing? Here are some practical steps to help ensure your long-term financial confidence.
Update your beneficiaries
If your beneficiary details aren’t up to date, who inherits what could be determined by UK intestacy laws rather than your wishes. When did you last review your designations? Have there been major life changes, such as divorce, remarriage, births or bereavements since then?
Consider checking your beneficiary listings on wills, insurance policies, pension and any other accounts that affect your estate. If you’ve listed a trust, have any relevant tax rules changed? Have you accounted for scenarios like your primary beneficiary passing away before you? An experienced solicitor can guide you through these considerations.
Create flexible liquidity
Holding too much cash can mean losing out to inflation, but not having enough accessible funds can cause bigger problems if you need quick access. Striking the right balance is key to avoiding disruption to your long-term plans. Your ideal level of liquidity will depend on your personal circumstances, goals and comfort with risk – so it’s worth reviewing this regularly.
Evaluate your retirement plan
Are you on track for the lifestyle you want in retirement? Don’t just focus on the size of your pension pot – look at the mix of investments, expected income streams, contingency plans, inflation and longevity. Retirement planning is complex and needs regular review.
Review account ownership
Poor account structuring can create complications, e.g. if one partner dies and an account is solely in their name, the survivor may face delays accessing funds. Joint accounts can help, but titling decisions also affect inheritance tax planning and other financial considerations. Seek professional advice before making changes.
Develop a charitable strategy
Giving is rewarding, but it can also be tax efficient. Consider donating shares instead of cash or explore setting up a charitable trust or donor-advised fund to maximise Gift Aid benefits. An experienced professional adviser can assist in structuring your charitable donations efficiently.
Spark a family conversation
Sustaining the benefits of wealth for generations is nearly impossible without a mutual understanding among family members. Consider creating a family mission statement that outlines the shared vision for your wealth and legacy. This should include shared values, expectations and lessons, not just financial goals. This helps to ensure clarity and unity.
Digitise your records
With multiple accounts and providers, paperwork can pile up. Go paperless and centralise key documents in a secure digital location for easy access
Invest with your values
Aligning your wealth and values is a deeply personal journey, and your portfolio can be tailored to reflect your beliefs, preferences and goals. Through a deeper understanding of what matters to you, a trusted wealth manager can help you identify your priorities.
Check in with your wealth manager
A trusted wealth manager brings experiences, impartiality and tools to help you navigate market changes. Share updates about your life and plans – overcommunicating is better than under communicating. Schedule regular reviews throughout the year.
These ideas are a helpful starting point, but no two long-term plans are identical – so reach out to your wealth manager for more specific guidance about progressing toward your goals in 2026.
Note: Raymond James does not provide tax or legal advice – please consult a qualified professional.
Sources: Which.co.uk; Gov.uk
Nothing on this website should be construed as personal advice based on your circumstances. No news or research item is a personal recommendation to deal.