For better returns, proper insurance protection, and tax-saving, the new tax year is the right time to take such important financial decisions relating to savings and investments. It is time to take a step back and conduct a few checks to ensure that you are on the right track with your financial goals. To do so, experts say, you need to first understand your current financial situation, and then take any corrective action, if necessary:

1) Reviewing goals – Set goals, you haven’t already. See to that your risk profile, financial goals, and investment time-frame, are all in line. Checking the overall portfolio is the right time to take the help of a financial advisor and find out how you are doing in terms of your financial goals.
2) The right time for Tax Saving – A lot of taxpayers wait to do their tax planning and then panic at the last minute. Industry experts say the starting of the financial year is the best time to start tax planning and saving for tax with the help of the right tax-saving products.
3) Evaluating Insurance – With the pandemic, now most people have been opting for insurance, however, are you adequately covered? One can find that out based on their income and dependencies one has. For a life insurance policy, one needs to make sure the dependencies or the family are properly covered, so that the family’s ongoing expenses, liabilities (if any) are covered and also fund major life goals, in case of an unforeseen event.
4) Understand your debt situation – This includes your money outflow towards your credit card payments, personal loans, car loans, etc. You need to keep a check on your ongoing debts and understand how much debt will be comfortable for you to take on, on a monthly basis, without any stress on your cash flows
5) Emergency corpus – A number of people have exhausted their emergency fund, in the past year, during COVID-19. However, experts say, one should continue investing towards creating an emergency fund and keep maintaining it. If you are just starting, start with trying to accumulate 3 to 6 months of your/family’s living expenses.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of April 2021 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.