How much money do you need for the rest of your life?

We all know the adage that ‘failing to plan is planning to fail’, so have you planned out how much money you need for the rest of your life?

If the answer is no, you’re not alone. However, James Mallinson, the Managing Director of Servo Private Wealth, is encouraging people to take this seriously, noting that financial planning ‘has no minimum age limit’.

So, where does someone start with something like this?

We were lucky enough to sit down with James to find out a little more about how and why we should all be thinking about financial planning for the future:

“First off, we hit you with the big questions in life, such as; what would you be doing if you weren’t working? How do you have fun outside of work? What would you be doing if money was no object? We then quantify this and go a level deeper, asking clients questions such as ‘do you want to leave a legacy behind? Or would you instead want to go out penniless?”

All of this information is used to build up a framework by the Servo Private Wealth team, where they conduct a charges, performance and risk analysis of any existing plans and schemes you might be invested in.

“We then use the analysis to understand your aversion to risk and link it back to your goals. By doing this, we’re able to tell you whether you need more, whether you have enough or even if you have too much (this leads to a separate discussion around Wealth Management and potentially discuss methods such as charitable giving). I’ve also sat across from people and told people they can retire five years earlier than they thought they could, providing a massive sense of relief and astonishment.”

However, the team are keen to clarify that this kind of exercise isn’t isolated to just retirement; in fact, far from it:

“Equally, we’ve been able to help young business owners quantify their business and help them get off the treadmill of running a business and move onto something enjoyable. Whether that be investing in another business, consulting, or just having more time for family, however, without being able to quantify their business and make a plan, this wouldn’t have been possible.”

James Mallinson, Managing Director of Servo Private Wealth, concluded:

“Ultimately, this is about understanding the top and bottom of where you want to go in life by asking the big questions. It may seem daunting at first, but this really helps to build a bigger picture. Even if you’re already working with a financial planner, we can still help by looking at your existing investments to see if there are any gaps to help you along your financial journey. Often, people (business owners in particular) aren’t taking full advantage of the tax exemptions available to them because they just aren’t aware. Ultimately the sooner we start working with people, the sooner you know what you’re working towards and the sooner we can achieve it.”

The economic climate is certainly looking interesting for the foreseeable future. Slashed interest rates, coupled with tax changes and government reforms, which are all coming into effect in the not too distant future, means relying on standard cash ISA’s and savings accounts for your future isn’t enough. These changes are likely to hit higher level earners and business owners, so now is the time to plan and look at different income streams and start planning how much you need for the rest of your life.

Servo Private Wealth is an Independent Chartered Wealth Management practice specialising in providing financial advice to entrepreneurs, business owners & high net worth families.

Find out more about Servo Private Wealth here: https://www.servoprivatewealth.com/ You can also follow them on Instagram & Linkedin.

Disclaimer: This article is for general information and is not intended to address your particular requirements. No individual or company should act upon such information without receiving appropriate professional advice.

Servo Private Wealth is an appointed representative of Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority