We’re all used to taking our cars for their MOT, aren’t we? The test includes checks on the lights, bodywork, brakes, suspension and much more. It’s designed to make sure that your car is roadworthy and safe to drive, to prevent any accidents or breakdowns.
This got us thinking that in some ways, our finances are no different to a car. They too could benefit from a bit of fine-tuning every so often to ensure they’re running at optimum performance.
Obviously, it’s a legal requirement to make sure our cars are roadworthy but there’s no such law for our finances—it’s up to you to ensure your wealth is working efficiently and as hard as it might. This is why it can be worth asking a financial adviser for a financial MOT or health check. It’s a chance to not only check what you already have in place but to also consider ‘new parts’ you may want to install.
It’s all too easy, for instance, to think your pension will just grow at its own rate and not pay it much attention. By enlisting the help of a financial planner, though, you can check your pension fund is invested in a way that is getting the best return for you. In 2018, Investment group, Bestinvest, stated that 26 of the top funds in the UK, containing £6.4 billion, were badly underperforming, and had been doing so for three years. What’s more, at times, they had failed to meet their targets by over 5 per cent. An adviser will be able to monitor the situation and, if needed, move your savings into alternate funds.
Another ‘new part’ you may decide to investigate is insurance. Ideally, you should have sufficient insurance cover in place to provide for your dependants in the event of your death and for yourself and your family in the event of either long term ill-health or the onset of a ‘critical illness’. Or you could review your savings and realise you’re not making the most of your potential tax-free returns through the various ISA products available.
Whatever your circumstances, it may be worth you booking yourself in for a financial MOT to ensure your financial affairs are fit for your current situation.
If you have any questions around this topic, please feel free to get in touch with us directly on 01789 263888 or email firstname.lastname@example.org.