Page 70 • The HERALD • 30th May 2024 v WE’VE BEEN YOUR LOCAL SINCE 1994 v ASK A PROFESSIONAL USING YOUR INHERITANCE EFFECTIVELY by Michael Osman, Oyster Financial Planning Inheriting wealth can be both a blessing and a challenge. It presents an opportunity to improve your nancial security and accomplish your goals, but it also involves managing the funds wisely. Cash ow modelling (we call it a Lifestyle Financial Plan) is a really powerful tool to help you make informed decisions about using your inheritance e ectively. It helps to provide a clear and easily understood picture of your nancial situation as a whole and can help to demonstrate how best to use that inheritance received from a loved one in a way in which they would be proud. Creating a personal Lifestyle Financial Plan (LFP) is straightforward when guided by an experienced professional, here are a few steps that are needed: • Gather information about your current nancial situation (income, expenses, assets, liabilities, property, pensions, investments etc) • Understand your current net worth, and the relationship between income and the cost of your desired lifestyle, now and into the future. • Learn to identify your nancial goals, commitments and objectives. • Create a ‘ rst dra ’ LFP to understand how things look for you right now in a way that you will easily understand. • Learn about your risk tolerances when it comes to investing money (short and long term) • Ensure your family and liabilities are protected in case of illness, disability or worse! • Learn from the ‘dra ’ LFP and then look to see the possible positive impact the inheritance can have on your nancial future. Michael Osman, Oyster Financial Planning • Once amendments are made due to the inheritance coming into your life, commit to that plan and then regularly review it as life moves along. By following these steps, you’ll have a comprehensive Lifestyle Financial Plan that provides a clear picture of your current nancial situation and helps you plan for your future needs and goals. is will enable you to make informed decisions about your nances and ensure you’re on the path to achieving and maintaining nancial independence. Here are some bene ts of creating a Lifestyle Financial Plan when managing inherited money. Clarity On Financial Goals & Objectives Having a LFP helps you identify and prioritise your short and long-term nancial objectives, such as buying a house, starting a business or funding your retirement. Personalised Wealth Management With a clear understanding of your nancial situation, you can make better decisions about investing, saving and spending your inherited wealth, ensuring that it serves your needs and goals over time. Understanding & Protecting Against Risk By analysing di erent scenarios and their potential impact on your nances, a cash ow plan enables you to assess and manage risks associated with investments and other nancial decisions. A High-Level Summary of your Financial Life you can easily understand Once you have your plan in place it can then help you understand tax and how best to manage this, your future retirement plans as well as a strategy to pass on your wealth should tragedy or sudden death strike to ensure your wealth goes to who you want in the most tax e ective way possible. Making Your Loved Ones Proud of the Decisions you make We have seen the positive impact an inheritance can have on a family following the sad loss of a loved one. Making sound and sensible decisions that your loved ones would be proud of are easily made with the help of a personal Lifestyle Financial Plan that you own and truly understand. If you nd yourself or a friend in this position where an inheritance is received and feel professional and friendly guidance is needed at this sad time, please do get in touch with Oyster Financial Planning. michael@oyster nancialplanning.co.uk, 023 8084 8410 or pop in and see us in the centre of Hythe Village.
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