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Make sure your financial planning is in good shape 

Good financial planning is about identifying  steps you can take to protect and make the most of your income, assets and wealth. You can benefit most from reviewing your savings, investments, other assets, tax planning, pensions and estate planning together.

Protecting your wealth

Today’s economic and political climate presents many challenges to protecting and growing your capital. The prolonged period of low interest rates, for example, has made it harder to achieve decent returns on lower-risk investments, aggravated by creeping inflation. And Brexit uncertainty is likely to continue generating fluctuations in the value of the pound and euro.

At times like this, careful planning plays a particularly important role in securing your financial security over the long term, helping you weigh up which issues affect you most and establish how you can protect against them.

Personalised, expert advice

While some choose a DIY approach, most people will benefit from an independent and expert review of their finances. After all, it is difficult to take a step back and look at your broad financial situation from a truly objective perspective, or fully understand the complex tax implications and changing rules.

For the best results, take professional advice from an experienced financial adviser. They should use the necessary tools to thoroughly understand your unique situation, needs and objectives, including how you want to shape your legacy.

Investment planning

While all investments – even bank accounts – carry risk, a suitably diversified portfolio can help manage risk within your comfort level. It is essential to establish a clear and objective view of your risk tolerance to determine the investment approach that will suit you. Your adviser is best placed to do this objectively through psychometric testing, for example, combined with their knowledge of your family’s situation and your financial goals.

Understanding local taxation

If you live in the Canary Isles, your financial planning need to be set up for Spain, not the UK. Ideally, your adviser should be based locally and have in-depth understanding of the Spanish tax regime and how it interacts with UK rules.

A local adviser can react quickly and help you make adjustments if your personal circumstances change, or if there are Brexit developments or tax reforms that may affect you. If you decide to return to the UK at any point, they can help you navigate the tax regimes and residency rules of both countries.

The importance of regulation

Make sure you only deal with an adviser that has suitable professional qualifications and is authorised by a reputable regulatory body, such as the UK’s Financial Conduct Authority (FCA). They should also be authorised to give advice here in Spain.

Remember: the sooner you review your financial planning and set up a strategic, long-term vision to protect your wealth, the sooner you can relax into a prosperous future in Spain.