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BlogAligning your investments with your financial goals

Aligning your investments with your financial goals

There is a wide range of financial goals you could have as an investor, whether they be centred around your retirement, navigating a divorce, leaving an inheritance, or supporting your family.

Regardless of what your goals are, one of the most important aspects involved in reaching them is how you structure your investments.

Read on, to learn some of the ways you can align your investments with your future goals more effectively – ranging from things like tax-efficient strategies to the benefits of a retirement planning tool and financial advice.

Establishing your financial goals

Before we explore just some of the ways you can align your investments with your goals, it’s important to know how to establish the right goals as the foundation of your approach.

Each investor will likely have their own unique goals stemming from their specific financial situation. For example:

  • You might be approaching retirement and want to grow a sufficient amount in your pension pot to fund your entire retirement, allowing you to retire early and support any dependants.
  • You may be going through a divorce and want to protect your wealth as you navigate the process.
  • You might be looking at how you can leave an inheritance to pass your wealth on tax-efficiently to your loved ones.

We recommend obtaining a financial adviser to help you refine your goals. They can help you choose goals that are not only beneficial to building your wealth but also realistic in terms of your current financial situation.

By having these clear goals in place, you can more effectively implement achievable steps for your investments, to increase your chances of a successful outcome for each future target.

Aligning your investments with your goals

There are many ways you can align your investments more accurately with your financial goals, including:

Seeking a modern wealth management service

This can be one of the most effective ways to make sure your investments are aligned with your financial goals.

A financial professional can offer tailored recommendations that are designed for your finances and specific goals.

For instance, with goals surrounding retirement, they can help you plan out the right contributions to ensure you build your wealth effectively for when you retire. They can also do this in a way that protects your finances during your current circumstance.

This unique advice can hugely increase your chances of reaching each target in a way that’s suited to your situation.

Maximising tax efficiency

For many of your future goals, a key aspect might be growing your savings as much as possible. Therefore, tax-efficient investments can be a good way to help you reach your targets.

You can explore the different tax rules that apply to each of your accounts, and structure your investments accordingly.

For example, you can make the most of your Individual Savings Accounts (ISA) allowance – £20,000 for the 2023/2024 tax year – each year, so you have a significant sum of tax-free savings to withdraw for your financial targets.

Improved control over your accounts

Monitoring your investments effectively can be highly beneficial for aligning them with your goals.

A modern wealth manager can offer you access to a variety of wealth-building tools to help you accurately plan your investments with your goals in mind.

One example is a retirement planning tool, which lets you plan your future contributions and adjust certain variables to see how this impacts your wealth. Variables can include risk level as well as the times and amounts you contribute.

This can help you find the most suitable investment approach that creates the highest chance of reaching your financial goals.

Do you have some financial goals which require the right investment approach to achieve them? If so, we highly recommend speaking to a modern wealth management service to receive the right recommendations when investing.

Please note, the value of your investments can go down as well as up.

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