THE SCENARIO
Planning in your twenties
Jennifer is in her mid-twenties having graduated from university and is now working for a large investment bank in the City. Jennifer is single and is looking forward to advancing her career. She enjoys living in London and spending time with her friends.
The goal:
Although Jennifer is earning a good salary she is often surprised how little is left at the end of the month. Jennifer would like to begin saving for the future and is a member of her workplace pension but doesn’t really know much about it. Jennifer would like to buy a flat in London in the next seven years but knows that she will need to save for a big deposit although her parents have agreed to help.
How can we help?
We were able to provide Jennifer with some cashflow analysis which looked at her income and expenditure. We were also able to help Jennifer set a budget which involved setting up a few more bank accounts and, without curtailing her lifestyle too much, Jennifer was able to identify a small surplus each month. We helped her to invest this tax efficiently. We also reviewed Jennifer’s workplace pension and identified that she had opted for a cautious investment strategy which may not have been appropriate given the long time period until retirement.
Ongoing support
We continue to review Jennifer’s financial planning position every year to make sure she is on track to achieve her goals and make any changes should her circumstances change.
Disclaimer – this is a hypothetical client example and does not constitute a formal recommendation.