As UK inflation rises to 10%, it’s highest rate for 40 years, and interest rates are forecast to rise another 0.5% in September, many households anticipate a difficult winter ahead. Whilst the causes of the current cost-of-living crisis lies with global events, its impact leaves very little headroom for dealing with financial shocks closer to home. If ever there was a time to put in place financial planning for unforeseen events, this has to be it.
Unforeseen Events You Can Plan For
None of us like to think about unexpected illness, accident, or loss of earnings. But we should acknowledge that they’re a possibility – and mitigate against the financial disruption they can cause. Otherwise, being caught out without having protection in place could threaten to topple carefully laid financial plans for the future.
Protection insurance can get you through difficult financial situations, without having to dip you’re your emergency savings:
- Income Protection Insurance. This pays you a proportion of your income if you are unable to work as a result of injury or illness.
- Mortgage Payment Protection. Providing mortgage payments for up to a year if you lose your job or cannot work as a result of illness or injury.
- Critical Illness Insurance. Offering a lump sum if you are diagnosed with a serious illness such as cancer, multiple sclerosis, or heart attack.
- Life Insurance. Your dependents receive financial support if you die. This may come in the form of a lump sum, or regular payments.
Beware Short-Termism
When costs are rising on multiple fronts for your family or business, there’s a danger of submitting to short term thinking, rather than maintaining a long view on your finances. At Harpur Wealth Management we find that having a clear financial plan enables our clients to stay on track with their future financial planning, when the going gets rough.
For example, when funds and investments are clearly demarcated for specific goals such as retirement, or education fees it’s far less of a temptation to dip into them. Long-term financial planning helps you to remember the goals that you are working for, beyond the present moment.
How Can a Financial Advisor Help?
Our financial advisors are trained to offer financial planning for unforeseen events. They offer clients regular reviews, therefore, with the aim of adjusting their financial plan if necessary. It might be the case that funds are made available to help with your current finances, whilst leaving long-term funding doing the work that it was intended for.
Alternatively, your financial advisor can act as a sounding board for decisions taken in response to global financial impacts. Often, having another perspective on your short-term decision making can reveal potential courses of action, or help you to work out the best options.
Working With Harpur Wealth Management
At Harpur Wealth Management we work closely with our clients to ensure that their financial plan reflects the future they want for their family. We take time to get to know the people we work with. Because we do our best work when we know, in detail, what we need to achieve.
We never lose sight of the fact that we’re dealing with people’s lives, and we’re aware, therefore, of the potential for disruption. Our advisors can integrate financial planning for unforeseen events in the form of protection insurance and funds that can be freed up when needed.
If you feel that you would benefit from our financial services, why not book a free consultation today with a Harpur Wealth Advisor? Call us on 01234 924620 or use our online form.
Disclaimer
This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.
The value of your investment can go down as well as up and you may get back less than the amount invested.
‘The Financial Conduct Authority does not regulate taxation advice’
