Our ‘darling’ chancellor says he’s optimistic when viewing the economy of the UK.
Presumably he doesn’t have to look at an increased council tax bill, an increased gas bill, an increased electric bill and an increased fixed rate mortgage deal. I’ll try not to mention petrol or food!
He did admit the ‘unprecedented shock to the economy’. He didn’t admit that it was his government that was largely at fault for the state of the UK economy: it’s currently trendy to blame sub-prime mortgage in the US to pass off the issue. Mr Chancellor; that’s passing the blame.
Have you noticed how they don’t blame the Tories anymore?
So meanwhile, how does this affect your long term financial planning? It would appear that you home has probably gone down in value recently and might not go up for a little while, but how long is that little while? Over the longer term property has increased much quicker and more extensively than inflation, the IHT nil rate band and plain bank and building society savings (can you remember building societies – they do still exist; just?)
You will almost certainly be worse off in your monthly pay packet despite whatever slant the government puts on tax changes (failing to grasp why so many poorly paid people need the 10% rate to stay).
You salary may not increase at the rate of the tax increases.
However, whichever way you look at it Mr & Mrs average UK person is going to find themselves with a growing asset backed estate. We’re living longer and building up far greater sums of money, mostly through property purchases.
Planning is key to keeping those long term finances up to date, because despite everything, your long term future may get cut short. I know it’ll never happen to me, but it might happen to someone else. Is that you?
Your should check your will at least annually to see if your estate assets have altered sufficiently to need to make an appointment with your estate planning consultant to see if you’re up to date, to see if changes need to be made soon or if you can leave it another year. Don’t leave your planning behind otherwise your planning will become poor and out of focus.
Filed under: Wills
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