Getting Started.

20s & 30s.

For those that need a push in the right direction.

 

Sounds like you?

The financial planning that is right for you will be different depending on where you are on life's journey. Does the below sound familiar?

Are you unsure where to start?

  • Lifetime ISAs?

  • Pensions?

  • Insurance? 

No one has told you how much you should be saving, or maybe you are just too busy. 

Don't panic, you are in the same boat as everyone else. But, the earlier you start the better. 

Person Using a calculator on a mobile ph

Quick Calculator

Future Value of Money

Have you ever thought about how much a cup of coffee or a loaf of bread might cost in 30 years? Doing so might help you plan for your future retirement.

May have the equivalent "purchasing power" of

A £3.50 coffee could cost you

Years in the future

Money today

We can help you project your savings into the future, to see whether you are likely to have "enough". And if not, then we can tell you how much you need to start saving per month to get there.

In which case, you might need more than you think in retirement, to sustain the lifestyle you are used to. Or in other words, money today is likely to be worth less in future...

Please note: This calculator is intended to provide an insight only. It is not a personalised recommendation, and should not be relied upon to make any financial decisions. It is based on various assumptions, including growth rates which cannot be guaranteed.

We have chosen some key topics for people who are getting started...

 

Savings & ISAs.

Female Student with Laptop

Have you thought about...

WHERE SHOULD YOU PUT YOUR SAVINGS?

3/6

Did you know...

 

Pension contributions receive a tax ‘bonus’...

 

...but you can’t access it until retirement.

 

Investment ISAs grow tax-free, but annual contributions have a limit.

 

Venture Capital Trusts (VCT) investments can receive up to 30% tax relief, but they are high risk.

Deciding where to save is not always straightforward.

 

We can help you make sure your existing and future savings are channelled into the right places.

Image by Kara Eads

WHICH ISA IS RIGHT FOR YOU?

There are different types of ISAs...

 

> Cash ISAs 

> Stocks & Shares ISAs 

> Lifetime ISAs 

> Help-to-Buy ISAs 

> Innovative Finance ISAs 

 

Before you can decide which is right for you, you need to know the pros and cons of each one.

We can help you understand your options, what allowances are available to you and ensure your savings are being channelled into the right places.  

4/6

Thoughtful african guy thinking try solv

HOW DO YOU SAVE FOR YOUR FIRST HOME?

1/6

Did you know…

The UK Government is currently offering up to

 

£32,000 in “free money”

 

...if you start saving towards your first home via a Lifetime ISA.

But it’s not right for everyone and there are many other (potentially better) options to consider.

It’s important that you think about the limitations that are often overlooked, such as contribution limits or penalties for withdrawing early.

HOW MUCH SHOULD YOU BE SAVING?

Ask Yourself...

 

Are your resources being stretched? Do you find it difficult to decide what you could do without?

 

Do you want to know how you can live well today whilst also investing in your future?

Developing a good saving habit is vital for your financial health and budgeting wisely doesn’t have to be difficult.

 

We take the time to understand your priorities and recommend the changes required to achieve the right balance between saving and spending.

2/6

Image by Elena Mozhvilo

CAN YOU GET A BETTER RETURN THAN A CASH ISA?

5/6

Most ISAs commonly available on the high street are cash accounts – and very low risk. 

 

If you are prepared to take more risk, you can increase the chance of making more money.  

 

You can hold investments within an ISA which means you benefit from tax free growth. 

Annual returns have been*: 

 

> 3.5%    Cautious Risk  

> 4.2%    Moderate Risk  

> 5.3%    Adventurous Risk  

 

But past performance is not a guide to future returns.

* Sector average over 20 years to 2019.

Tall pine tree rising above others.jpg

HOW DO YOU KNOW WHAT A GOOD INVESTMENT RETURN IS?

Ask yourself:

 

Which investment is better?

A. 6% Growth

B. 6% Growth

 

Not all investments are the same – even if they look as if they are.  The difference?  It’s all in the ‘risk’.

 

The investment that has taken the least amount of risk is the best.

 

Our concern is when we hear, “I am making money, so I am happy.”

Risk appraisal is a complex area, but we have the tools and expertise to identify whether your investments are producing a ‘good’ return.

6/6

Not your life stage?

 

Pensions.

Image by LAUREN GRAY

More things to think about...

ARE YOU MAKING USE OF ALL YOUR TAX ALLOWANCES?

Did you know...

 

"Tax relief = free money"

 

Someone earning £90k could contribute £32k to a pension and be £16k better off the next day.

 

Regularly using your ISA allowances can result in having your life savings in a completely tax-free account.

 

“ISA millionaires” are becoming more common. No tax on growth or income.

Tax incentives change every year. Current opportunities may not be available next year, so don’t miss out.

 

Call us now to discuss how investing tax efficiently could mean you gain thousands of pounds of ‘free’ money, you wouldn’t have had otherwise.

2/4

HOW CAN YOU STAY ON TOP OF YOUR MONEY?

3/4

Ask yourself...

 

Do you have the time or energy and skills to manage your money all by yourself?

 

Are you confident you are making the right decisions?

 

Chances are, like most people, you would prefer to spend your time and effort on other more enjoyable things. 

Get in touch to free up more of your time and ensure you make smart decisions with your money.

HOW CAN YOU TELL WHETHER YOU ARE ON TRACK?

Ask Yourself:

 

Are you worried about whether you will have enough money to live the life you want now and in future?

 

Would you like to see how much money you need at each stage of your life?

 

Would you like to know what steps you can take to ensure a comfortable future?

For most people, planning for the future is daunting – but it needn’t be.

 

Schofield’s ‘Cashflow’ gives you clarity of your current position and an insight into your future.

 

Talk to us today about how we can transform the way you spend, save and plan your life.

4/4

CAN YOU CONTRIBUTE TO A PENSION?

1/4

You can contribute up to £40,000 per annum (pa) into a pension.

 

You get tax-relief on the way, tax-free gains and income. Pensions are even more tax efficient than ISAs.

Unused allowances may be available to be carried forward for future years.  

 

However, pension contributions can be limited to earnings, and for higher earners limits can be reduced to as little as £4,000 pa. 

These rules are always changing and are not widely understood. It’s no surprise that many people end up with a surprise tax bill.  

 

If you are thinking of topping up your pension, get in touch with us for help with navigating these complex rules. 

 

Insurance.

Mountain Biking by the Lake

Other things to consider...

WHAT LIFE INSURANCE CAN YOU GET ON A BUDGET?

1/3

Did you know...

 

Paying £25 per month could cover a 30-year-old for:

 

  • £1,000,000 on death until age 60, or

 

  • £100,000 per year on death until age 48, or

 

  • £2,100 per month to age 65, if unable to work.

 

It is not always as expensive as you think. Afterall - £25 per month is probably less than your phone bill.

 

We work out what policy is right for you and do all the paperwork and admin.

 

Call us now to find out just how little life insurance can cost you whilst protecting you and your loved ones.

*assumes male, non-smoker.

Image by Alex Presa

YOUNG FAMILY - WHAT HAVE YOU NOT THOUGHT OF?

Did you know...

 

Filling out just 1 form now could ensure your family gets ALL your pension when you die.

 

Your children have their own ISA allowances. They can also get a £720 per year bonus from the government with a pension.

 

A 30-year-old could pay £7 per month to insure a £20,000 family income for 20 years.*

 

These are just a few of the things to think about.

 

Have you crossed all the t’s and dotted all the i’s to make sure you and your family are secure?

 

To find out how much your peace of mind costs, please get in touch today.

*assumes male, non-smoker

2/3

WHY DO YOU NEED TO INSURE YOURSELF?

3/3

Ask yourself:

 

Would your family be able to pay the bills if you weren’t around?

 

How different would your life be with no money coming in, if you were unable to work?

 

Statutory sick pay is less than £100 per week and is payable for a maximum of 28 weeks. Is this enough for you?

Don’t leave your family’s future to chance. How much is peace of mind worth to you and your family?

 

Get in touch to find out what life insurance is right for you.

Young Family

HAPPY MONEY HAPPY ME