How to take care of your wealth as it grows

Building and maximising wealth often involves a lot of moving parts.

From progressing in your career to growing your family, increasing your income, taking on new responsibilities or thinking more seriously about the future, your 30s-50s can be a financially busy stage of life. It’s often a time when the habits you built earlier begin to matter more – and when careful planning can help you make the most of what you have.

This article is the next in our series exploring how to take care of your finances through life’s various stages. Here, we’ll look at growing and protecting your wealth, and how reviewing your tax position and making informed decisions can support you as you work towards your longer-term goals.

Here’s how to take care of your wealth as it grows:

1. Review your tax position

As your wealth increases, you’ll be more likely to run into tax complexities, such as increased income tax, Capital Gains Tax, and – later down the line – Inheritance Tax (IHT). Strategic thinking is key here, as it can help you to keep more of what you earn, and even continue building your wealth over the long term.

2. Understand your cash flow

As your income grows, your outgoings often do too. Mortgage payments, childcare or school fees, household costs, holidays, family commitments and lifestyle choices can all compete for attention – which can sometimes make it harder to see where your money is really going.

Cash flow planning can help you understand the money you have coming in and going out, both now and in the future. It can show whether your current habits are supporting your longer-term goals, highlight where adjustments could be made and help you make more confident decisions about spending, saving and planning ahead.

This can be particularly helpful if you’re balancing several priorities at once, such as supporting your family, building financial security, preparing for future costs or simply wanting to enjoy life today without losing sight of tomorrow.

3. Ensure your finances are protected

Protecting your finances is perhaps just as important as building them. Options that you could consider include:

• Income protection: This provides a regular income if you become unable to work due to an illness or injury. Typically, this covers around 50-65% of your salary until you have recovered, retired, or the policy ends. It can work alongside sick pay from your employer and other benefits.
• Life and critical illness cover: This provides a lump sum or ongoing income for your family if you die, or a payout if you’re diagnosed with a specified, serious illness.

These options provide a helpful financial buffer to reduce the need to use the savings you’ve been building should the worst or unexpected happen.

Taking care of your wealth as it grows doesn’t mean having every answer now.

It’s about reviewing where you are, understanding your options and making considered choices that could help protect and grow what you’ve built.

We’re here to help

If you’d like support shaping a plan around your goals, a free, no-obligation consultation is a great place to start. At a time that suits you, you can meet with a member of the Attivo team either virtually or in person to talk through your current financial situation, what matters most to you and where you’d like your finances to take you next.

We’ll also explain how financial planning could support you across areas such as pensions, protection, tax planning and estate planning, and discuss costs openly so you can decide whether we’re the right fit for each other before making any decisions.

Important information:

We offer a free initial consultation to discuss your goals and next steps. If you decide to go ahead with advice, charges may apply – these will be explained before you commit.

This article is for general information purposes only and does not constitute financial advice, a personal recommendation, or a guarantee of outcomes.

Financial regulations and rules can be complex and challenging to navigate without expert guidance. If you are unsure whether an investment is right for you, or before making any changes to your financial plan, please seek independent financial advice.

The value of investments and any income from them can fall as well as rise, and you may get back less than you invest. Past performance is not a reliable indicator of future performance.

Cashflow forecasting is an illustrative planning tool only. It is based on assumptions about future income, expenditure, inflation, taxation and investment returns, which may change and are not guaranteed. Actual outcomes may differ.

Protection policies may not be suitable for all individuals and depend on personal circumstances. Terms, conditions and exclusions apply, and cover may cease if premiums are not maintained.

Tax planning is not an activity regulated by the Financial Conduct Authority. Tax treatment depends on individual circumstances and may change in the future.