Securing your family’s financial future is at the forefront of many investors’ financial goals. That being said, it can also be a complex process with many things to consider.
With this in mind, we wanted to share our top ways to help build your family’s wealth in the most resilient and effective way possible for the future.
Read on to find out more.
- Obtain a modern wealth manager
Our first, and potentially most important tip for securing your family’s financial future, is to obtain a modern wealth manager.
Whenever you’re striving to achieve any financial goal efficiently, a modern wealth management service is great for helping you develop the right approach – particularly when it comes to building your family’s wealth.
The core aspect of wealth management is that they can offer tailored advice on how to approach your unique financial situation.
Your adviser will take the time to learn about your finances, as well as those of your family, dependents, etc.
They can then establish what you wish to achieve for your family. For example, do you want to save for your children’s education, allow your loved ones to buy a property, or simply set them up financially with investments?
Your adviser will tailor their recommendations to your situation, to give you the best chance of a successful outcome for your family’s wealth.
- Consider your inheritance
Another important way of securing your family’s future is to consider leaving an inheritance. This involves leaving your estate to your loved ones when you pass away.
Your estate can refer to several aspects of your wealth, including various assets such as investments, cash, personal belongings, property, and much more.
This can help you ensure your family will be financially supported when you pass away, and that they’ll be able to receive your estate in a way that best suits their financial situations.
Inheritance Tax could potentially impact your family’s wealth when inheriting your estate, so once again, a financial adviser can be key in this instance.
Your expert will ensure you have a full understanding of how your estate might be taxed, and how you can leave it in a way that shelters as much of it from tax as possible – e.g., leaving assets to a spouse or civil partner who is exempt from Inheritance Tax.
- Invest in Junior accounts early
We also recommend investing in Junior accounts for your children, which can help you start building their wealth from early on.
Two key Junior accounts to consider are Junior Individual Savings Accounts (JISAs) and Junior General Investment Accounts (Junior GIAs).
If you’re investing in a JISA account, you can grow your child’s savings every year whilst sheltering the money from tax.
JISAs have an annual allowance of £9,000 – as of the tax year 2023/2024 – and you can save up to this amount each year for your child. When they turn 18, they can access the funds tax-free.
Junior GIAs also allow you to grow your child’s savings, except unlike JISAs, they are taxable for any returns. That being said, if you utilise your child’s personal income and capital gains allowance, this can also be sheltered from as much tax as possible.
These accounts are beneficial for your child’s future, since with regular contributions each year, they can end up with a significant sum of money when they become adults.
This can go towards a range of goals, such as education or property, thanks to the long-term investment strategy of Junior accounts.
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Speak to your modern wealth manager to discuss your plans for your family’s wealth, and begin devising the right approach to building and securing it for the future.
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Please note, the value of your investments can go down as well as up.
