Are you living in the whirlwind of family life, with young children and a blossoming career? It can be hard to juggle family finances AND set aside funds for the future. Take a look at how we helped Mr and Mrs M do just that.
Mr and Mrs M are busy juggling a young family. Mr M, aged 44, has a good job that supports day- to – day family living and Mrs M, aged 37, has taken a career break to focus on bringing up the little ones.
Whilst managing their short-term financial needs, Mr and Mrs M were conscious that they should also be thinking ahead to the future and growing needs of their family. They were also concerned about their reliance on a single income and what would happen if Mr M faced redundancy or illness.
Our main concern for this young family was to protect them against the loss of income. Mr M had no benefits of this kind through his employer, so the first thing we did was implement Life Assurance and Income Protection for him. This gave the couple peace of mind that, should something unthinkable happen, they would have the funds available to continue looking after their family.
Like many other young families, Mr & Mrs M spend the majority of their monthly income without any backup for the future. Our cash-flow modelling showed that this wouldn’t leave them enough to fund their future retirement. So, we worked with the couple to help them re-organise their day-to-day finances, freeing up extra cash to put into a long-term savings plan. We made use of all their available allowances, such as ISA and pension contributions, to minimise the tax that would be payable and create a much healthier looking financial position for the couple’ s retirement.
Creating a long-term savings plan also helped solve the issue of how Mr & Mrs M would eventually repay their interest-only mortgage. The couple plans to downsize from their family home in the future, so we showed them how to release the equity when needed.
Family life is something that is very important to us at Mulberry Chartered, so we take great satisfaction from continuing to help this young family protect themselves and their future.