I’ve made a New Year’s resolution to get my financial affairs in better order, but I'm a little stuck as to where to start. I'm putting money into my employer’s pension scheme and I have an ISA into which I’m putting about £200 per month, but that’s as far as it goes. What else should I be doing?

North Norfolk News: Phil Beck, independent financial adviser with Smith & Pinching Phil Beck, independent financial adviser with Smith & Pinching (Image: Smith & Pinching)

Phil Beck of Smith & Pinching responds:

Congratulations on coming up with a really good New Year’s resolution! However, I understand how difficult it can be to find a starting point for making changes to your finances. What is right for you will depend on a range of factors about you, your lifestyle and your future needs. You need a plan…

Building a financial plan is not something that can be done quickly. An independent financial adviser will take you through an advice process that will look at every aspect of your financial position, including your lifetime targets and your attitude to investment risk. The adviser can help you balance your goals with your current and future resources and will map a course of action to help you achieve what you need in the longer term.

Investing should always be a long-term process, allowing you to make potential gains over a five to ten-year period (although gains can never be guaranteed, of course). An independent adviser will help you select suitable investments that will aim to reach your targets both inside and outside your pensions.

This is the perfect time to get down to serious financial planning. These early months of the year can be used to maximise the opportunities for tax-efficient savings and investments that are available to you in the current tax year. These might include pension contributions, which attract tax relief, and either Cash or Stocks & Shares ISAs, for example. There are also gift allowances tied to the tax year if you are looking to manage a future liability for Inheritance Tax.

Financial planning should be an ongoing process: things can and do change so regular reviews and adjustments to your plans are essential. Having a relationship with a trusted independent financial adviser is essential to ensure that you keep on track as your life changes.

Any opinions expressed in this article do not constitute advice. The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

For more information, please visit www.smith-pinching.co.uk