Blog

With the growing concern for financial security recently, many British families have begun looking into private wealth management. Simply put, it’s a move involving proper investment management today, to have economic stability for the rest of one’s life.

Getting into personal financial planning processes in Cardiff and other neighbouring British cities has not only become a trend but a necessity—especially given the recent economy destabilizing events, such as the Coronavirus pandemic and Brexit. 

The Importance of Private Wealth Management

The rising public discussion on private wealth management, which will be discussed in this article, aims to contextualise the financial opportunities and roadblocks with the age of the individual.

The goal is to prime every individual to prepare future generations for resilience against personal tragedy and more widespread crises and not just for the event of an economic recession. Savings and investing are now crucial, as bankable income is only a temporary resource—mostly to finance daily living costs.

Another key component to private wealth management is also living financially stable lives, yet fulfilling ones, at that. This is to strike a balance between being fiscally responsible yet also being able to enjoy the benefits of your savings. 

Basic Private Wealth Management In Accordance with Age

There are typically three stages for the financial planning process that is relevant to the age of an individual. While this plan usually starts from the age of 20, there have been recent discussions to extend this from birth—as now many families and wealth management services alike are aiming for a more holistic approach to financial planning. These are the following age stages: 

1. Childhood (under 20)

At this stage, it is mostly the parents of the child who are put in charge of personal finances, however, they can be taught about it as soon as they are old enough to go to school. Having a personal piggy bank in their room or looking into child bank accounts are just a few examples of child-friendly private wealth management practices. Additionally, wealth management services can also set up trust funds for university or housing to prepare the individual for these upcoming financial hurdles. 

2. Age 20–30

Developing a strong foundation for financial stability is crucial during this age. Aside from taking advantage of Individual Savings Accounts (ISAs), you want to invest in more long-term needs, such as family housing and health insurance. Additionally, having a strong personal accident fund will safeguard you from incurring debt due to personal injury or crisis. 

3. Age 40–50

At this stage, you want to finance life upgrades or developing what you already have, like major home renovations or adding to investments. These years are your last glory hurdles into retirement, while also attempting to get your kids into financing their own futures! 

4. Age 60 and Beyond

These golden years mean living within your means but also enjoying your retirement savings. Remember, there are pensions or other investments that you can also pull funds from. Additionally, take note of inheritance tax and other elderly-related accountabilities that may need liquid funds. 

How to Enjoy Finances Even On Budget

Now that you have a baseline understanding of private wealth management, you may be thinking that your options are limited in enjoying the money that you earned. However, that is far from the case! 

In fact, these are the foundational plans you need to better expand your capacity for enjoyment and self-actualisation. Take note of these two tips:

Reward yourself if you can

Being methodical and responsible about your money and savings allows you to reward yourself from time to time. Take that vacation or dine at a fancy restaurant if you feel you deserve it—after all, saving all that money for nothing would most definitely be pointless. This is called reaping and enjoying the fruits of your labour. 

Maximise your enjoyment with every purchase

Aside from asking yourself if you need to buy something, ask if you will enjoy it even in the long run. Whether it’s in buying a new toy or spending on a new car, you need to make sure that you are able to enjoy every purchase to the fullest.

Conclusion

Private wealth management is about setting financial goals and meeting stability at every stage in life. If you want to be prepared for anything while still enjoying the things you deserve and love, then it’s best to start as early as you can. 

In need of fulfilling the personal or family financial planning process in Cardiff? We are your dedicated team of wealth management services equipped to help you get started. Get in touch today and secure your finances for the future with us! 

*Will writing and Powers of Attorney involve the referral to a service that is separate and distinct to those offered by St. James's Place and along with Trusts are not regulated by the Financial Conduct Authority.