Castlefield financial planning calendar

Setting financial goals can sometimes feel complicated to figure out for yourself – money is integral to so many things we do in life, but we rarely consider what it really means to us. When setting financial goals, it may help to ask yourself the question, ‘What’s important about money to me?’. The value that we derive from money will be personal to each of us; it’s important that the emphasis is on you. For one person it may be that money provides security and for another it may be freedom.  

Whilst having a better understanding of our relationship with money is an intangible benefit of creating a financial plan; goals are the tangible results. Once you have identified what you want your money to achieve for you, you can then think about what goals you must set. Your goals can be for in the next 1, 5 or even 20 years-time, the only important thing is that they’re tangible, creating targetable milestones.  

For those that complete self-assessment tax returns, be mindful that the deadline for completing an online tax return is midnight on the 31st January.  

Many of our clients at Castlefield share our mission of using assets to do good. We are able to ensure that our clients’ money is invested in line with their personal values, and alongside their investments, our clients often have a desire to share their good fortune by gifting to others. This typically takes on two forms: charitable giving and making financial gifts to family. With both, there are considerations to be made at the tax year end. More information on financial gifts can be found here: Financial Gifts and the Tax Year End (castlefield.com) 

In September 2022, Castlefield launched its new philanthropy service – the Castlefield Individual Philanthropy Account (IPA). Many of us give from our income, direct to charities, and this service isn’t designed to replace that sort of giving. Instead, we see it as the natural next step for clients with surplus assets who may want to give in a simple and tax-efficient way.

Further information on the Castlefield IPA, including the Castlefield IPA brochure, is available here: Castlefield Individual Philanthropy Account (IPA) 

As the end of the tax year (5 April) approaches, March is a time to have a final check that you have maximised your tax allowances in the current tax year, to the extent that you wish to or are able to. You can check the current annual allowances and exemptions in our guide here: Castlefield Personal Taxation 

March is also Free Wills Month, having a Will in place ensures that your estate is distributed in line with your wishes when you die. Having a Will can also save your family and friends time and money, and it can make sure you don’t pay more inheritance tax than you need to – if that’s important to you. 

You can read more about the campaign in our blog: Free Wills Month

As the days get longer and the weather gets brighter, Spring is considered to be the season of new beginnings and can be a good time of year to tidy up your personal finances. 

A good place to start can be by reviewing your savings accounts. A fixed-rate savings account could offer a higher rate of interest than your current account if you are able to set aside your money for a fixed period of time. Alternatively, an instant access account will allow you to earn interest while still having access to the money.  

There are lots of ethical banks and building societies to choose from, where you can make sure your money has no negative impact on the environment or on society. The personal finance website 'Good With Money' has a useful article here (https://good-with-money.com/2022/10/05/top-7-ethical-savings-accounts/) 

It is also important to review your expenditure, looking out for any regular, non-essential payments for services and subscriptions you no longer use or have forgotten about. 

If you’re someone who can quickly put your hands on all of your financial information, consider yourself well organised. If you can’t, now’s a good time to get this in order. A simple way to start can be by gathering each document and putting the most recent in a binder. For example, to establish your income your most recent P60 or pay slip are going to be the most relevant documents.  

Some documents will have a monetary value, such as a savings account or pension, and with this you’re looking for statements that include the current value. Other documents may not have a monetary value but are still important to include as they will help put together an overall picture of your finances. For example, whilst some insurance policies will have a monetary value (such as life insurance) others may not (such as car insurance). The importance of gathering your documents is to help you ascertain where you are today.  

Generally speaking, you only need to keep the original Policy Document or Policy Schedule, and the most recent annual statement and any papers that document changes to your policy. 

The new State Pension will be worth approximately £180,000* throughout your lifetime, for an individual nearing retirement. The State Pension is a regular payment you receive from the government once you reach State Pension age and is guaranteed and rises each year.  You can check your State Pension age using the State Pension age calculator on the government website. 

The amount of State Pension you received depends on your National Insurance record. You need at least 10 qualifying years to get any State Pension and 35 qualifying years to get the full amount. This includes National Insurance contributions that you pay when you are working and contributions that are credited to you when you are unable to work, are a carer or are claiming child benefit. You can check your State Pension forecast here: Check your State Pension forecast - GOV.UK (www.gov.uk). 

If you do not have enough qualifying years, you may be able to pay additional voluntary National Insurance contributions to make up any gaps in your record. You can find out more information here: Voluntary National Insurance: Gaps in your National Insurance record - GOV.UK (www.gov.uk) 

*Source:https://www.citizensadvice.org.uk/debt-and-money/pensions/types-of-pension/state-pension/ 

* Based on current life expectancy forecasts for a 65 year old due to retire at age 66 receiving the full new state pension for 19 years. Please note these figures are for illustrative purposes only 

Summer, for a lot of us, is a quieter period of the year whilst we enjoy some R&R. For those that aren’t self-employed there are no major financial deadlines to keep in mind during this season. This makes Summer the perfect opportunity to use your available allowances in good time. As outlined in March, there are tax allowances available to use each year – some of which cannot be carried over year after year. By utilising these tax allowances early into the tax-year you remove the risk (and the stress) of rushing to get these used at the tax-year end.

For those that are self-employed and make payments on account, remember that the deadline for the second payment is midnight on the 31st of July.

It’s likely that you’ll have some insurance policies that you review on a regular basis, such as car insurance, however, it’s equally important to review your personal protection plans with a similar regularity. Changes to circumstances may affect both your needs and the suitability of your existing policies. A few examples of life events you may experience which alter your protection requirements include: when your family grows, purchasing a new property and changes to your job or health. 

By not reviewing your protection needs and existing cover on a regular basis you may end up paying too much for a policy that is no longer fit for your requirements. Alternatively, you could be paying too little and not have sufficient cover in place for your current circumstances. 

When analysing your own protection requirements, it can be helpful to consider the main areas of need for protection: 

• Health, incapacity or accident; 
• Income, mortgage and other debt; 
• Death; 

• Asset protection; and 
• Business protection 

It can be overwhelming to make an assessment of whether your existing cover is still right for you. It is important that if you are unsure of anything that you seek advice. 

An Expression of Wish (commonly abbreviated to EOW) or Death Benefit nomination form is a statement that informs your pension provider who you would like to receive your pension benefits in the event of your death. These people are known as beneficiaries, and do not have to be family members.  

A beneficiary usually won’t pay inheritance tax on the proceeds as pensions sit outside your estate, meaning it is not covered by your Will.  

Most modern personal pension funds can be left within the pension wrapper indefinitely following your death to be drawn on by subsequent generations of beneficiaries. It is therefore very important that your nomination form accurately reflects your wishes and is kept up to date. Equally, if you are a member of an occupational workplace pension, it’s important to nominate your preferred beneficary(ies), although the choices available to you may be more restrictive.  

October once again welcomes Free Wills Month. You can read more about the campaign in our blog at: Free Wills Month. 

Additionally, the 31st October is the deadline for Paper Self Assessment tax returns. If you wish to complete your tax return online, the deadline is extended to January the following year. You can read more about Self Assessment tax returns here:Self Assessment tax returns: Deadlines - GOV.UK (www.gov.uk) 

We are now bombarded with the Black Friday deadlines and then Cyber Monday and it can be hard to navigate green and sustainable businesses within this time. We have previously provided tips on having a green Christmas, including our green gift guide which can be found here: How To Gift Green This Christmas (castlefield.com)  

Ethical Consumer can be a fantastic guide where you can explore ethical ratings of 40,000+ brands and products. For more in-depth information you need to register for its subscription service, however, you can still find lots of information for free on its website. (https://www.ethicalconsumer.org/) 

It is important to keep your financial goals under review and the end of the year brings with it a time for recollection. Whilst throughout the year we have made suggestions to review various parts of your personal finances, it is also essential to regularly monitor the goals behind them.  

Reviewing your goals can allow you to appreciate the successes you have made in the year, and how your views and experiences have matured and developed. It is unlikely that year on year your circumstances will remain constant, and changes can have a profound impact on the goals we set.

As part of the evaluation process you might find that some of the goals you set at the start of the year no longer fit with where you are now, or that the timeframe which you set to achieve a certain goal has moved. Managing your financial goals is an ongoing and evolving process and it’s worth being mindful that as your life changes your goals will often change with it.