Importance of an IFA

Posted on November 15, 2022

The value of saving in times of economic distress

Some might think it an odd concept, to consider saving or financial future planning in these economically straightened times. Yet this may well be one of the critical considerations for the inevitable time when inflation comes down and disposable income increases. Now is the time to be planning for your financial future. Identifying support is vital in navigating the options that are relevant and affordable to you.

Times of uncertainty

From television to your Smartphone, everything appears to be in crisis, a regrettable reality for some. Shifts in interest rates and accelerating prices can easily move a family, couple or individual from affordable outgoings to the anxiety of unpayable bills. In Jersey, we are far from immune to these and perhaps, thanks to the water that surrounds us, subject to greater uncertainty.

Considering the future, now

We will all get through this crisis as we did the repercussions of the global financial crash of 2008 and appeared to be doing post Covid-19. Now is the time to get informed about your options. To understand the reality of your financial position, which may well not be as bleak as it currently looks, but more importantly to be advised about the myriad of ways of making and saving money.

The sums need not be large

A savings plan can start from £50 per month saving or investing over any period. Your money will be accessible to you and your monthly premiums can also be as flexible as you need. In fact Plans offer the kind of flexibility that are ideally suited to the economic turmoil we face now. A lift in mortgage rates and you can flex your plan down; a lift in income and you can flex it up. You will also be able to make lump sum payments into your savings plan, such as a work bonus. Not only is this an ideal way of saving for a holiday, a computer or a car, but it is also an ideal way of saving for life objectives such as educational fees; a deposit on a house and a financially secure future for you and your loved ones.

A financial security cushion

It is not always easy to put money aside for an unexpected financial demand, but when there is little certainty about anything, a financial cushion is that cash reserve available when needed. A bank or building society deposit may raise little interest but crucially it ensures you do not spend all your incomings each month. Going longer, we recommend you deposit 5% to 10% of your earnings. For example pension provision; a savings plan; family protection or life and critical illness cover which starts from as little as £10 to £20 per month.

Knowing what you don’t know

It’s all about sitting down and having a chat, sharing ideas and implementing a Financial Wellbeing plan to ensure that whatever happens in the future, you and your family are well protected in all eventualities.

Michael Barney
Managing Director and Partner of HBFS

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