Just like a car needs an annual MOT check to ensure it is roadworthy, your finances could benefit from a winter financial planning MOT to make sure they are in good shape for the season and year ahead. Here is our WKM checklist for your winter financial planning MOT:

Financial Goals Review

Revisit your short-term and long-term financial goals. Assess your progress and make any necessary adjustments. This might include updating goals, setting new targets, or modifying your financial plan based on changing circumstances.

Budget Review

Assess your budget to ensure it reflects any changes in your income, expenses, or financial goals. Account for any additional winter-related costs such as heating, winter clothing, or holiday expenses.

Emergency Fund Checkup

Confirm that your emergency fund is sufficient to cover unexpected winter-related expenses or any unforeseen financial setbacks. It is a good plan to have three to six months’ worth of living expenses set aside in your emergency fund.

Insurance Coverage

Review your insurance policies, including home, motor, and health insurance. Ensure your coverage is up to date and adequate for potential winter-related risks, such as damage from storms or accidents on icy roads.

Tax Planning

The winter break offers a good time to consider any tax planning opportunities before the end of the tax year. This might include maximising contributions to tax-advantaged investment or taking advantage of available tax allowances.

Retirement Savings Check

Evaluate your retirement savings contributions. If you can contribute more to your pension scheme, consider doing so. Take advantage of any employer matches and explore options like catch-up contributions if applicable.

Investment Portfolio Review

Assess your investment portfolio to ensure it aligns with your financial goals and risk tolerance. Consider rebalancing if necessary and be mindful of any tax implications associated with selling investments.

Remember, a winter financial planning MOT is about ensuring your financial well-being during the colder months and preparing for the upcoming year ahead. Regularly reviewing and adjusting your financial plan can contribute to a more secure and resilient financial future.

Financial planning is a core part of what we do to help you enjoy the journey….