When did you last estimate your personal wealth?

When did you last estimate your personal wealth?

During the pandemic, businesses affected by COVID-19 disruption will have had their attention firmly focussed on survival. Certain sectors have suffered more than others with the hospitality, entertainment and leisure industries bearing the brunt of lockdown measures.

But what impact has this unprecedented period had on the value of your personal assets?

One thing we cannot change is the passage of time, and if not already retired, we are all heading in that direction.

The funds we are building to finance retirement need to be reviewed in much the same way that we examine the changes in our business balance sheets.

And are we aware that many of our decisions, unrelated to finances, may have an impact on our personal wealth?

For example, increasing the size of our family, or changing our marital or civil partnership status.

An annual review

We would recommend a focussed fact-find session to determine the assets and liabilities that make up your personal wealth balance sheet. Reviewed annually, or bi-annually, this will keep you up-to-date with your personal net worth. And will help to answer questions such as:

  • Are your existing Wills and inheritance tax planning fit for purpose? Do they need changing?
  • Is your wealth increasing or decreasing?
  • What plans do you have that will impact your wealth creation strategies?
  • What are the contingent risks arising from the sale of assets in future years – capital gains tax for example?
  • Do you need to consider business exit planning?
  • Are you on track to meet funding of retirement?

Planning note

If you do have contingent risks to consider – future tax payments for example – it is always better to plan a minimisation strategy before the events occur. And a key indicator to pin down these risks is to focus on creating wealth in tax-free zones and take advantage of all the available tax allowances and reliefs to which you may be eligible.

If you are inspired to take a look at these issues, please call so that we can consider your options.