Mastering Financial Planning for Small and Medium-Sized Enterprises

Tim Mossholder Sxb8stmtfaw Unsplash

 

If you are the owner or director of a Small or Medium-Sized Enterprise (SME), you understand that your business and personal finances are closely interconnected. The financial health of your business directly impacts your financial security and future. With the assistance of our Mogers Drewett Financial Planning team, we offer a comprehensive range of business finance services to help you protect your business and ensure your financial well-being. Our experienced financial planners and legal advisors work alongside your trusted advisors, such as accountants, to provide expert guidance tailored to your specific needs.

Introduction

Running an SME is no small feat. It’s a constant balancing act, and your personal and professional worlds are deeply intertwined. The financial well-being of your business is inseparable from your own financial stability and future. In collaboration with our Mogers Drewett Financial Planning team, we are committed to providing you with a comprehensive set of financial planning services to secure both your business and personal financial success.

Business Financial Services

Key Person Protection

Every business has its indispensable team members – those individuals who are vital to its effectiveness and profitability. The loss of such a key person, whether due to death or illness, can have far-reaching financial consequences. This is where Key Person Insurance comes into play, designed to safeguard your business in such challenging times. These key individuals may not necessarily be top executives; they can be anyone whose absence could significantly impact the business’s financial stability.

Our team of experts will work closely with you to identify these key individuals within your organisation, explore the available options, and assist you in implementing the protection measures your business needs.

Succession and Business Exit Planning

Whether you’re contemplating an exit from your business or planning for retirement, it’s crucial to have a clear plan in place. You need to understand what must happen for you to hand over the reins and what financial resources you’ll need to fund the next stage of your life.

Our team of financial and legal experts is here to help you prepare your business for sale and, based on your future plans, determine when it’s feasible for you to make that exit with confidence.

Divorce & Separation Financial Planning

Divorce and separation can have profound implications on your future, particularly on your financial well-being. Early agreement on financial arrangements can significantly reduce the emotional toll on everyone involved and provide you with long-term financial security. Our Mogers Drewett Financial Planning team, in collaboration with our family law experts, offers seamless services that consider both your current needs and future objectives.

Our Financial Planning Services

Gathering Information for Financial Disclosure: The first step in any divorce or separation process is to assemble all the necessary financial information, a process known as “financial disclosure.” Both parties must engage in this, and it can be quite challenging to decide where to begin and what to include. Our team of experts is there to guide you, helping you focus on what’s essential for effective financial disclosure and to pave the way for constructive discussions.

Evaluation of Settlement Proposal: Many individuals turn to a financial planner once their divorce settlement is already in place. However, involving a financial planner early on can help shape the settlement in your favour. While a solicitor primarily focuses on the legal process of divorce, a financial planner looks at the long-term financial consequences of the decisions made and how they will play out in the real world. The Mogers Drewett financial planning team is here to work alongside you, ensuring you fully understand how your current financial situation will be impacted post-divorce and evaluating potential settlement proposals based on their long-term implications.

Pension Sharing Order: Pensions are often overlooked during divorce, but they are significant assets that can greatly affect your future financial security. Our team can discuss whether pension sharing is the right choice for you and guide you through the process of obtaining a Pension Sharing Order.

Planning Your Financial Future: Untangling finances during a divorce is a complex and emotionally charged task. Many decisions made during this time may not reveal their consequences until much later. Our team of experts can work with you both during and after your divorce to ensure you regain financial control and establish a solid foundation for your future.

Our specialist team is here to help you:

  • Gain a deep understanding of how your current financial situation will be impacted after divorce.
  • Evaluate possible settlement proposals and their long-term impact on your financial future.
  • Build a solid foundation for your future financial stability using cash flow modelling.
  • Determine your eligibility for State Benefits after divorce or separation.

Retirement Financial Planning

Planning for retirement is a critical aspect of financial security, yet it often takes a back seat. When you’re younger, retirement may seem far away, and it can be tempting to delay planning. The thought of whether you’re saving enough for the retirement you desire can be overwhelming. But early planning can make a massive difference in when you can retire and the quality of life you can enjoy during your retirement years.

Our financial experts at Mogers Drewett are authorised and regulated by the Financial Conduct Authority, and they can help you start planning now, so you can enjoy the lifestyle you want in the future.

Our Retirement Planning Services

Developing a Retirement Strategy: Simply contributing to a pension is just the beginning. You must also understand how much your pension is likely to provide at retirement. Our team of experts can help you determine the size of the retirement fund you require and then create a plan to help you achieve it. This plan includes details about the contributions and investments you need to make to meet your retirement goals.

Maximising Pension Contributions: The earlier you begin contributing to a pension, the better your chances of building a fund sufficient to meet your retirement needs. Even if retirement isn’t far away, there are still ways to increase your retirement income. Our team can help you understand the options available and ensure you are using any tax relief available to maximise your pension contributions.

Accessing Pension Income: Under new rules, anyone aged 55 (age 57 from April 2028) with a defined contribution pension can access their pension. Our team can review your existing pensions to help you understand when and how to access your pension.

Optimising Tax Efficiency: A well-structured pension arrangement can be a very tax and cost-efficient way to build up a retirement fund. However, pension legislation is complex, and it’s essential to understand all your options and the rules surrounding pensions to avoid potentially costly mistakes.

Investments & Savings

Managing your finances can be challenging, but the responsibility of looking after someone else’s finances as an Attorney, Deputy, or Trustee can be even more overwhelming. At Mogers Drewett,  we’re authorised and regulated by the Financial Conduct Authority and work alongside our legal teams to provide a seamless service that considers your current needs and future goals.

Our Investment & Savings Services

Trust & Trustee Investments: As a trustee, you may represent companies or organisations, including charities, as well as beneficiaries. You are responsible for the funds held within a trust and must comply with the regulations outlined in the Trustee Act 2000. Each trust has its unique set of rules, various tax implications, and beneficiaries with varying needs. It is, therefore, crucial that trustees have an effective trust investment strategy to meet the requirements of all those involved and conduct regular reviews to ensure that trusts remain suitable. Our team of financial planners at MDFP holds specialist qualifications, including Membership of the Society of Trust & Estate Practitioners, and they have extensive experience in advising trustees.

Financial Advice for Attorneys & Deputies: The Court of Protection supervises the financial affairs of individuals who, for various reasons and at different stages of life, have lost the mental capacity to manage their matters. Being appointed as an attorney or deputy is a significant responsibility. You may be investigated by the Office of Public Guardian or the Court of Protection to ensure you are meeting your legal obligations and acting in the best interests of the individual concerned. 

Our team of financial planners at Mogers Drewett fully understands the duties and responsibilities placed upon deputies and attorneys, and they have a wealth of expertise in this area. Working alongside our legal team and other external professional advisers, such as accountants, we are well-placed to provide any financial advice required and help demonstrate that you have met your legal obligations and responsibilities.

Investment after Inheritance: Inheritances often come with a significant financial responsibility. Our team of financial planners offers a free financial review to all beneficiaries. The aim is to help you make an informed decision about what to do with your inheritance. After reviewing your financial situation, our team can guide you on the next steps, whether that involves paying off expensive debt, advising on the best savings accounts depending on your access needs, topping up your pension, or investing the money for your future. Inheritances generally do not incur tax, but other inherited assets, such as securities, retirement accounts, or real estate, can have tax implications. Our team can also advise you on the best tax-efficient strategy moving forward.

Conclusion

In the intricate world of running an SME, balancing personal and business finances can be a daunting task. However, with the support of our Mogers Drewett Financial Planning team, you can navigate this complex landscape with confidence. From safeguarding your business through key person protection to planning for a secure and prosperous retirement, we have you covered. If you’re facing the challenging circumstances of divorce or separation, our financial planners and legal experts will guide you through the financial aspects of this journey. Additionally, as an Attorney, Deputy, Trustee, or Beneficiary, our team will help you manage your financial responsibilities effectively. In each of these areas, we provide comprehensive services to secure your financial well-being.

Remember, your financial health is a critical aspect of your overall well-being. It’s never too early to start planning for a secure and prosperous future. Contact our Mogers Drewett Financial Planning team at 01225 308333 or email financialplanning@mogersdrewett.com to get started on the path to financial success.

Mogers Drewett

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