Goal Mapping in Business

Being able to set a business plan is great. Being able to map out personal goals is also great! How about we combine the two? 

As someone who is self-employed as an independent financial adviser, running my own property business, and Mum to two girls,  the line between business and personal is so frequently blurred. 

Let’s be honest, especially in those first few years, the finances are a heavy weight and a focus. This can take away the passion in what we’re doing. So let’s set those financial foundations so we can focus on the passion points of our day to day, week to week, month to month, etc. 

My name is Indigo Smith. I’m an independent financial adviser. I’ve been in the industry for 15 years so far, working at big corporates, start ups and mutuals. Goal mapping in a structured way came to me about 10 years ago. I had a goal of buying so many investment purchases by the time I turned 40. I’ve still got a little ways to go on that achievement, but the goal mapping session that really holds so firmly in my mind is the one I attended with my daughter. She was 7 years old at the time. I’d always planned that when she was old enough, we’d start going on more cultural holidays. Don’t get me wrong, I’ve loved our trips to West Wales; the gorgeous beaches, food, zoos and friendly people, but I’ve always wanted to explore the world.

Life is a tightrope balancing act of being sensible and planning effectively for the future, and living for the now.

In that goal mapping session, hearing my daughter say that SHE wanted to be an explorer, and try new foods and experiences too... Well, that blew my mind. Our next trips were to Paris and Rome, where we explored the history, the culture, the food. Pizza is still her favourite food, and funnily enough, a pizza restaurant in Paris where they gave us pens to draw on their walls was a trip highlight. We attempted to draw a Welsh dragon. It looked more like a wheelie bin so apologies Pink Flamingo, Paris, for making our mark in such a hilariously bad way! 

Structuring our goals as a team, a partnership, really aligned our thinking, and we were able to stick to and reaffirm our measurables on a regular basis. 
So, let’s do a little exercise.

First of all, on an otherwise blank sheet of paper, please write:

This is Real Life.

Fill this page with writings or drawings of what your day to day looks like right now. What time are you waking up? What are you doing to fill your cup? Is there any self-care in there? What joys and challenges are you facing? Just keep going until the page is full. 

This Really is Real Life.

Goal Setting 

Goal Pursuit

Financial Foundationals

Written by Indigo Smith, signed off by Corbel compliance team. References included in article.

Five Ways to reduce your mortgage payments

Rising energy and food prices are becoming a growing concern for countless households right now, particularly as the tax burden looks set to increase too.

So as the cost of living in the UK continues to head upwards, many of us will be looking at where we can make savings and free up some extra money.

Mortgage payments are a good place to start, as many of us could be on a much better rate or a cheaper deal.

Of course, the mortgage market is complex, with countless different options open to you. So, it’s well worth speaking with a mortgage broker with expertise in this area, who can guide you through this maze and point you in the right direction.

Look for cheaper deals

Even if you’ve managed to avoid being moved onto an SVR, there’s still more you can do to cut your mortgage payments, such as shopping around for cheaper deals.

If you research the market and compare rates, you could find big savings are there to be made, particularly if the value of your house has gone up since you took out your original mortgage. Always speak to your mortgage broker as they will have access to more deals than are available by going direct to lenders and often at preferential rates.

Don’t stay on a standard variable rate when your deal expires

You’ll automatically be moved onto a Standard Variable Rate (SVR) when your mortgage deal comes to an end. This is usually higher than the rate you can get with a new deal, so if you switch to a new fixed rate offer, you could potentially save thousands of pounds on your mortgage payments.

Pay off your mortgage over a longer period

You could reduce your monthly mortgage payments if you increase the term you’ll pay over. But bear in mind that you’ll have to pay more interest overall if you take longer to pay off your mortgage.

If your circumstances change in the future and you’re able to pay more later on, you could possibly reduce your term again, but you’ll need to discuss this option with your
mortgage provider.

Take out an offset mortgage

Offset mortgages allow you to use your
savings to reduce the cost of your mortgage, so instead of earning interest on your savings,
you can cut the amount of interest you pay on your mortgage.

You can still access your savings but be aware that your mortgage payments will increase again if you dip into them at any point. You may also have the option of linking up with friends or family savings, so they can help you while keeping hold of their own savings, depending on which mortgage provider you go with.

Pay more now so you can pay less later on

One way to cut the amount you’ll have to pay in the future is to pay as much as possible up front. This could be a good option if you know that your household earning capability will be reduced in the future, for instance if you plan to take parental leave or want to go part-time at work before you retire.

It’s all about planning ahead and could massively pay off in the long run. But remember that some mortgage providers and products might have a limit on the amount you can overpay. So always speak with your mortgage broker for advice before increasing the amount you’re paying.

If you would like some help in finding out how you can save money on your mortgage then please get in touch with us here or call us on 01702 746811

Picture courtesy of Canva March 2022

What is the Gender Pension Gap?

The average woman has less retirement savings than the average man1. The difference between these two amounts is called the GENDER PENSION GAP. Wow! I have 3 children – 2 of them are girls. So my first thoughts on the gender pension gap is whether this means that my daughters are likely to end up with less money than their brother to see them through their retirement. And given that, statistically, women live longer than men,2 is this an even greater disadvantage to all of us females?

Will we basically have less money to see us through a longer retirement than men?

How big is the Gender Pension Gap?

There is a lot of research out there about this gap, and it looks very different depending on who and how it is measured. In 2021, Legal and General analysed their 4 million pension scheme holders and found that, by retirement, the Gender Pension Gap reaches 56% - that means the average size of a woman’s pension pot at retirement is 56% less than the average for a man

Why is there a Gender Pension Gap?

The first thing to understand is why there is this gap to start with. There is a Gender Pay Gap. Whilst a lot of work is being done to reduce this gap, if women are earning less than men, they will be contributing less to their pensions. Hence a big reason for this gap.

Women are also more likely to take career breaks to look after children and/or family members. There are also more female carers, so even those that do work are more likely to work fewer hours or progress through their careers due to their caring responsibilities. Lesser known reasons why there is this gaping hole between retirement pots of different genders include 

• Women tend to be less likely to live with parents vs young men 
• Women can spend a larger percentage of their salary on rent vs men, as well as the belief that a first home is likely to be a greater percentage of a woman’s salary than for men
• Average care costs for women are generally thought to be higher
• Costs of childcare tend to fall more on women’s shoulders and therefore reduces their ability to contribute into their pensions - Menopause struggles can lead to women giving up work, and I have met quite a few women that really relate to this point
• Divorce tends to have a greater impact on women’s pensions than men
• And women tend to take out less protection against themselves and their income, meaning that if something should happen to them and they are too sick to work, they could find it harder to contribute into their pensions than someone who has protected themselves (via income protection or critical illness cover)

Why is it so important to close this gap?

Having enough money to see you through retirement is really important. There is a tendency for us to prefer to reward ourselves immediately rather than save for our future, but as the costs of living rise and we are living longer, we need to make sure we do not run out of money in the later years.

We all work really hard to earn our money, and therefore making sure we get a well-deserved and well-rewarded rest when it comes time to retire is something that everyone needs to prepare for. In the 2021/2022 tax year, the full state pension pays out £9,339.20 per year. Ask yourself whether that would be enough to allow you to enjoy the standard of living you are hoping to achieve. In fact, when in comes to the state pension, not everyone will receive the full amount and many people will receive a significant amount less.

Another reason it is so important to close the gender pension gap is when it comes to later life care and medical bills. Men spend an average of 62.9 years in good health and 16.5 years in poor health, according to official figures from the Office for National Statistics

2. By contrast, women spend an average of 63.3 years in good health and 19.8 in poor health.

This data was compiled for the period 2017-2019 and so pre-dates the COVID-19 pandemic, so there is a chance we will see the differences increase once data comes out to include Covid. Since women have less pension funds to see them through retirement, the news that they are likely going to have greater medical bills than men gives greater reason for this gap to be closed. How can we close the gap?

But please do not despair!

Yes, there is a gap, and yes, it feels like there is a lot against us women to close the gap, but there are many ways we can work towards a more even balance. Here is my checklist to help you work towards closing the gap:

• Check your State Pension Entitlement via this link - https://www.gov.uk/check-state-pension
• Keep track of your National Insurance Contributions
• Do you have a child under 12? If so, your national insurance credits may be able to be paid for you (whether or not you receive child benefit)
• Track down all your previous pensions – know what you have, how much it is worth, and whether it is invested appropriately for you
• Review your protection insurance and make sure it is suitable for you, your family and your future
• You can contribute into your pension, even if you are not earning (and you can still receive tax relief) – your partner or spouse can contribute into your own pension as well - Include pensions in divorce discussions
• Look after the next generation – start a children’s pension
• Know your number – how much do you have in retirement savings and what type of lifestyle do you want to lead in the future?
• Speak to a professional, like myself, to put together an achievable and understandable plan that makes sense for you

I am passionate about closing the gender pension gap, and with the work I do, I aim to help reduce the gaping hole even if it is one woman at a time.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

1 Legal & General Investment Management analysis of approximately 4 million pension scheme members, July 2021

2 Health state life expectancies, UK: 2017 to 2019, Office for National Statistics, 25 January 2021

www.naomihaynes.co.uk

Photocredit: Canva Feb 2022