SOLID FOUNDATIONS?

All this talk of economic doom and gloom has brought into focus the need to start from solid foundations when managing wealth; those who have the basics right will be best placed to weather the storms.

Getting the basics right means different things to different people. Everyone has their own unique set of circumstances as well as their own personal aspirations.

A good place to start is to ask the following questions:

• What do I want?
  
• What do I need?

Once those goals have been ascertained, you need to think about where you are on your path to success. This process can often highlight gaps in your chosen strategy or other areas that require attention.

It is worth mentioning that you shouldn't just let tax considerations drive your strategy; there is little point in having a highly tax efficient approach if all it manages to do is to lose you money.

You should, however, be aware of any tax benefits available to you - after all, it is not often that you get money back from H M Revenue & Customs.

For example, there are still a number of investments available that can produce tax free returns, such as National Savings products and Individual Savings Accounts (ISAs). These can be particularly appropriate if other aspects of your financial affairs are already exposed to risks outside your control.

Whatever approach you decide, you will also need to regularly monitor performance and then take appropriate action. A bank account that is a top performer one week can quickly disappear off the best buy tables.

It is important to remember that as your life changes, your needs will change too. You should revisit your plan regularly and make sure that it still fits your goals.

The final stage in the process is monitoring progress; making sure that the actions identified actually happen. When you are busy it is all too easy to move personal matters onto the back burner and, as this latest downturn has shown, this can be a costly mistake in the longer term.

If you would welcome the opportunity to explore your options, please contact Tim Davies on 01242 252555 or e-mail This e-mail address is being protected from spambots, you need JavaScript enabled to view it