Category Archives: Financial Planning

This guest blog was written by Chris Budd, who wrote the original Financial Wellbeing Book as well as The Four Cornerstones of Financial Wellbeing. He founded the Institute for Financial Wellbeing and has written more than 130 episodes of the Financial Wellbeing Podcast.

Being happy over a period of time takes work.

Doing something that makes one feel happy is easy, we all know what we enjoy. Some of those things cost money, many do not.

Finding happiness over a longer period of time – we might call this wellbeing – is more than a combination of happy moments. It requires a different approach. Money has a much more significant part to play in achieving this.

A financial plan should help the owner(s) to improve their wellbeing, not just their wealth. Understanding these different types of happiness can make a big difference to that financial plan.

Let’s look at some of these types of happiness, and consider how they might be impacted by a financial plan.

Happiness in the moment

Hedonistic pleasure means living a life moving from one joyful moment to another. Eating a delicious meal. Playing or listening to music. Laughing at a joke. Being with a loved one.

These are things that make us happy in the moment. Once that feeling has gone, however, we tend to revert back to our long-term level of wellbeing¹ until the next thing happens which gives us that joy in the moment.

Long-term wellbeing

Achieving something purposeful creates pride and memories, both of which are much longer lasting. This could be something personal, such as being creative. It could be something that gives a feeling of being part of a community, such as helping at a charity or coaching youth sports teams.

Having something in our lives which is purposeful gives meaning. Eating a delicious meal may make us happy at the moment, but having the skills to be able to create a delicious meal also gives longer-term wellbeing.

Happiness and wellbeing

A fulfilled life is surely one which includes both happiness and wellbeing. Money has an important part to play in helping achieve both of these. It can also, however, get in the way.

Sometimes, when we feel a bit down, we might buy something to give us a short hit of happiness. There is even a name for this: retail therapy.

This type of happiness is usually short-lived. Indeed, if the money used to buy the thing creates debt or makes the achievement of a longer-term goal less likely it can actually reduce our wellbeing.

Having control of our daily finances is one of the five pillars of financial wellbeing². This means spending in a way to maximise short-term happiness, without compromising long-term wellbeing.

The role of money and wellbeing

Money can have a positive effect on wellbeing if it enables one to achieve life objectives which make us happy.

An example of this could be achieving some financial security. This might allow someone to change jobs to one which pays less, but which might provide a greater sense of purpose.

A financial plan with such an objective for the future will provide real meaning to how one saves and spends now.

A financial plan which helps somebody to buy an expensive car or jewellery, the purpose of which is simply to show that one can afford them, is unlikely to create long-term wellbeing. This is especially true if achieving this plan requires sacrifices and long hours at work.

Bringing it all together

The best financial plans, therefore, help the owner(s) to be both happier and to achieve wellbeing. They will:

• allow spending today for happiness, and;
• aim for considered future objectives which will increase wellbeing.

A financial plan (or the lack of a financial plan) may result in high spending now but a failure to achieve long-term objectives. This might bring happiness now, but not achieve wellbeing in the future.

A plan that results in achieving financial security but involves little spending on ourselves now means living a life with the promise of wellbeing in the future but much lower happiness now.

As with most things in life, spending time on your financial plan considering the balance of happiness and wellbeing could help you to get the best out of your money.

¹A theory known as ‘set point theory’, ScienceDirect (2017)

²The Institute for Financial Wellbeing

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

In last month’s article, you read about why it’s often more difficult than you expect to identify scams. With the amount of money lost to fraud rising, being aware of common types of scams could mean you’re in a better position to spot the warning signs.

According to UK Finance (15 June 2026), £1.28 billion was lost to fraud in 2025, an increase of 4% when compared with 2024. There were 4.06 million confirmed cases of fraud in 2025, which fall into two broad categories, both of which may affect individuals.

• Unauthorised fraud: This occurs when the account holder doesn’t provide authorisation for the payment to proceed. Instead, it’s carried out by a third party. For example, this could happen if a criminal accesses your bank details and is able to make fraudulent purchases.
• Authorised fraud: With authorised fraud, the victim is tricked into sending money to the scammer. They might believe they’re sending money to their bank or are investing in a genuine opportunity.

Falling victim to a scam could harm your financial security. The long-term effects often go beyond finances too. Some victims may find the fraud has an emotional impact, such as affecting their confidence or ability to trust people.

Here are five common scams you should be aware of.

1. Phishing and smishing

Every day, you likely receive dozens of emails. You might quickly scan them before clicking on a link or downloading an attachment – something scammers seek to exploit through phishing scams.

With this type of scam, fraudsters send messages that appear to be from genuine organisations, such as a bank or retailer, to obtain your personal details or download a virus onto your computer.

Smishing works in a similar way but happens via a text message.

Before you click a link or download an attachment, consider whether it’s a communication you were expecting and check who has sent it. If you’ve accidentally clicked on a phishing or smishing link, changing your login details or freezing your accounts as soon as you realise could prevent criminals from accessing your assets.

2. Investment scams

Investment scams can take many forms, from fake social media adverts to a phone call that appears to relate to a genuine investment opportunity.

According to figures from the City of London Police (7 April 2026), victims of investment fraud collectively lost £879.8 million in 2025 – the equivalent of £2.4 million a day. Criminals reportedly exploited economic uncertainty, unstable markets, and highly convincing online platforms to dupe their victims.

Sometimes fraudsters will deliver a return on your initial “investment” to tempt you to hand over larger sums.

If you’re contacted out of the blue about an investment, this should act as a warning bell. In addition, remember that it’s impossible to guarantee returns, and if the opportunity seems too good to be true, it probably is.

3. Pension scams

Pensions are often among the largest assets people own, and the rules around them can be confusing. Indeed, a survey carried out by the Money and Pensions Service (5 November 2025) found that 22.5 million UK adults do not understand enough about their pensions to make decisions about retirement.

As a result, pensions are attractive to fraudsters. By posing as a financial professional, they may convince people to hand over significant amounts that they’ve set aside for their retirement.

Pension scammers might offer a free pension review, claim they could help you secure higher investment returns, or suggest they could help you access your pension sooner to fund an early retirement.

Again, you should be cautious if you’re contacted out of the blue. Your adviser could help you better understand your pension, making it easier to recognise bogus opportunities.

4. Romance fraud

The number of reported romance fraud cases has risen sharply. More than 10,700 cases were reported to Report Fraud (5 May 2026) in 2025, a rise of 29% when compared to the previous year. The average victim lost £9,500. In severe cases, individuals reported losing up to £1 million.

Often using online platforms to make initial contact, fraudsters will build a fake relationship before asking for money. As this type of scam often lasts months or years, victims may come to trust the fraudster and develop a genuine emotional connection with them. The scammer may further manipulate emotions by claiming the money is needed to cover medical expenses, support their family, or pay for plane tickets so they can meet in person.

The nature of this type of fraud often means it has devastating emotional consequences for victims as well as a financial impact.

5. Vishing

Finally, vishing is when a scammer phones you and pretends to be from your bank, building society, or government organisation. By gaining your trust, they may convince you to share personal details or transfer money.

Technology is making it easier for criminals to carry out convincing vishing scams. For example, number spoofing could make the caller ID appear genuine.

If you weren’t expecting a call or something sets your alarm bells ringing, hang up. Use official websites to verify the contact details, then get in touch directly. A genuine professional will understand why you’re being cautious.

The Financial Conduct Authority maintains the Financial Services Register, which includes the contact details of authorised firms that you can use.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Psychology could be one reason why some people are reluctant to invest, even when it fits into their wider financial plan.

Managing risk is an important part of life. You check the road before you cross the street, and you might be encouraged to take out home insurance just in case something happens. So, it’s not surprising that people often seek to minimise financial risk.

Yet, data suggests that Brits are more risk-averse when considering investing than other nations, including the US. According to Manchester Metropolitan University (21 July 2025), excluding workplace pensions, only 23% of people in the UK invest in the stock market, compared with nearly two-thirds in the US.

The difference in the number of people investing indicates that it’s possible to shift away from a mindset that views investing purely as a risk and instead considers the potential benefits.

3 psychological reasons you might prefer cash to investments

1. Market movements can make investing feel uncertain

The value of investments moves up and down as they’re affected by numerous factors. While this is a normal part of investing, it can feel unsettling.

Manchester Metropolitan University suggests that UK media coverage can heighten the feeling of unpredictability. It notes that there’s an imbalance in coverage, with a sharp drop being more likely to feature in headlines than a steady recovery that follows in subsequent weeks. As a result, readers might have a bleaker view of how markets are performing than the reality.

2. The fear of losing money could mean you favour cash

The fear of potentially losing money could lead some people to avoid investing.

The theory of loss aversion suggests that people feel more strongly about losses than they do about similar gains. Some people may shy away from investing without fully considering the risks and opportunities.

An Aviva survey (8 July 2026) found that 46% of people believe that investing is too risky.

There is a risk that investment values will fall and you may not get back all the money you invested. However, when you consider your wider financial plan, you may find that investing is right for you. You can work with your adviser to assess what level of investment risk is appropriate for your goals and circumstances.

3. Cash is tangible, which may make it feel safer

One reason holding cash might feel comfortable is that it’s more tangible than investments.

People often have a better understanding of cash than investments. If you hold it in a current account or easy access savings account, you can withdraw it from an ATM. Being able to access your money easily can provide a sense of security, even if cash isn’t an appropriate option for your financial goals.

The pitfalls of cash when working towards long-term goals

If you’re saving for short-term goals, such as a holiday or kitchen renovation, cash could be the right choice. However, when it comes to long-term goals, the impact of inflation could mean cash doesn’t retain its value as well as it first seems.

Inflation refers to the cost of goods and services rising. The Bank of England (BoE) aims to keep inflation at around 2%, though it has been above this target since mid-2021. Data from the Office for National Statistics (19 August 2026) shows inflation was 2.9% in the 12 months to July 2026.

Rising costs could erode the value of your savings in real terms if the interest earned doesn’t keep up with inflation. The BoE (19 August 2026) calculates that if you placed £10,000 in a savings account in 2020 until July 2026, you would have needed to earn £3,125 in interest to maintain its spending power.

When you’re saving for long-term goals, the impact of inflation could become more pronounced.

While investing does involve taking risks, it may provide an opportunity for your money to grow faster than inflation and support long-term goals.

If you’d like to review how you approach investing and whether the amount of cash you hold is appropriate, don’t hesitate to get in touch with your adviser.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The amount HMRC is forecast to collect through Capital Gains Tax (CGT) is set to more than double between 2024/25 and 2030/31, according to the Office for Budget Responsibility (OBR, 9 February 2026). The good news is that there might be steps you could take to reduce a potential bill.

CGT is a tax you might pay on gains you make when you dispose of certain assets, including:

• Shares that aren’t held in a tax-efficient wrapper, like an ISA
• Property that’s not your main home
• Some business assets
• Personal possessions worth more than £6,000 (excluding your car).

Policy changes have led to rising Capital Gains Tax bills

Over the last few years, there have been several changes to the CGT exemption and tax rates, which have led to more people becoming liable for the tax.

In the 2022/23 tax year, the Annual Exempt Amount (the amount of gains you could make before CGT may be due) was £12,300. In 2026/27, it now stands at just £3,000.

In addition, when you pay CGT, the tax rates have increased. The basic rate of CGT increased from 10% to 18% while the upper rate increased from 20% to 24%.

A combination of these factors means CGT receipts are predicted to double. The OBR data suggests HMRC will collect £13.7 billion from CGT in 2024/25. By 2030/31, the figure is forecast to reach £29.8 billion.

If you’ll be disposing of assets in the future, considering how to manage a potential CGT bill could be valuable.

5 ways you might reduce a Capital Gains Tax bill

1. Use your Annual Exempt Amount

As mentioned above, your Annual Exempt Amount is £3,000 for each tax year. Any unused allowance doesn’t carry forward to the next year. So, if reducing a CGT bill is a priority, you could make full use of the allowance.

To do this, you might need to spread the disposal of assets across several tax years. A long-term tax strategy could help you assess when to dispose of each asset to maximise tax efficiency while supporting your other financial goals.

2. Pass assets to your spouse or civil partner

You can usually pass on assets to your spouse or civil partner without CGT being due. As the Annual Exempt Amount is per individual, this could effectively double the gains you can make before CGT is applied.

You might also transfer assets to benefit from a lower tax rate if you’d pay the upper CGT rate. Depending on your partner’s other taxable income, they might pay CGT at the lower basic rate and reduce the tax bill.

3. Offset allowable losses

You don’t always make a profit when selling assets. While this may be disappointing, you may carry forward losses you’ve reported to HMRC to offset gains and potentially reduce your CGT liability.

4. Deduct your costs

Certain costs associated with buying, improving or selling an asset may be deductible when calculating your CGT liability.

Imagine you have a buy-to-let property, which you now plan to sell. You might have spent money on Stamp Duty and legal fees, which may be deductible when calculating your taxable gain. If you’ve carried out home improvements, these may also be used to reduce a CGT bill.

The same strategy could also apply to other assets. For example, if you sold artwork at an auction, certain associated costs could potentially be deducted when calculating your gain.

5. Move assets into tax-efficient wrappers

If you hold investments outside tax-efficient wrappers, you may want to consider moving them.

A Stocks and Shares ISA offers a tax-efficient way to invest as gains aren’t liable for CGT. In the 2026/27 tax year, you can invest up to £20,000 in ISAs.

If you already hold investments outside of an ISA, you could sell them and immediately rebuy the same investments within your ISA. This strategy is known as “Bed and ISA”. If your taxable gains exceed the Annual Exempt Amount, you could be liable for CGT, so you may benefit from taking this approach over several tax years.

In addition to ISAs, pensions also offer a tax-efficient way to invest, as gains on investments held within a pension are generally not subject to CGT. However, there are some important considerations to weigh up before you increase your pension contributions.

First, you cannot usually access the money held in your pension until you turn 55 (rising to 57 in 2028), which might not suit your investment time frame.

Second, if your total pension contributions exceed the pension Annual Allowance, you could face a tax charge. In 2026/27, the Annual Allowance is £60,000, but if you’re a high earner or have already taken an income from your pension, it may be lower. If you have any questions about your Annual Allowance or making pension contributions, please get in touch.

Talk to us about your tax liability

As part of your financial plan, we could review your current tax liability and assess how you may reduce the overall bill. Please get in touch to arrange a meeting.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

The Financial Conduct Authority does not regulate tax planning.

In just a few years, AI has transformed how we approach tasks both at work and in our personal lives.

While using AI could save you valuable time in some areas, it could pose risks in others, including when you’re writing or updating your will.

Your will sets out who you want to inherit your assets when you die. You may also use it to appoint a guardian for your children, name executors to administer your estate, and note other information, such as your funeral preferences.

While it is possible to write a will yourself, it is a legal document and seeking professional support could be valuable.

Yet, a survey reported by Today’s Wills & Probate (2 May 2025) suggests a growing number of people would rely on technology. Almost half of those surveyed in the UK and US said they would even trust AI to help write their will.

While using AI to write your will might seem like a simple solution at first, it could create long-term issues. Here are some of the risks you could expose your estate to.

AI cannot guarantee that your will is valid

To be valid, a will must meet certain criteria, such as being signed in the presence of witnesses. Relying on AI could mean that legal requirements are overlooked, potentially rendering your will invalid.

If your will is invalid, your estate might be distributed according to a previous will. If there isn’t a previous will, your estate could be distributed according to intestacy rules, which determine who inherits your estate according to legally defined laws.

In both these cases, it could mean your assets are not distributed in line with your wishes and that some of your intended beneficiaries are disinherited.

AI may use ambiguous or confusing language

AI writes confidently, but language errors could cause issues when your will is being interpreted.

Even seemingly small mistakes could have an impact. For example, ambiguous language or contradictory clauses might mean it’s unclear how you want your assets to be distributed. Even a minor error could lead to disputes.

A legal professional understands the importance of precise terminology and language so that your wishes aren’t misinterpreted.

AI cannot offer personalised advice when writing your will

AI may generate a basic will, but every family and estate is unique. Your will should be written to reflect your circumstances, family dynamics, and personal wishes.

Speaking to a legal professional gives you a chance to discuss what’s important to you and they may ask follow-up questions to address areas you have not considered.

An AI-written will might also overlook how your wishes interact with other legal documents and estate planning strategies. For example, you might be considering how to reduce a potential Inheritance Tax bill or have already established a trust to pass on some assets. A legal professional could offer advice on how these areas might affect the contents of your will.

An AI-written will could increase the risk of disputes

While will disputes are rare, the number of cases reaching the High Court is rising. According to Today’s Wills and Probate (31 March 2026), more than 1,200 disputed cases were filed in 2025, an increase of 13% compared with 2024.

While choosing to work with a legal professional can’t eliminate the risk of disputes arising, doing so could reduce the chances as poorly drafted or unclear wills are more likely to be challenged.

Disputes can lead to stress, delays, and legal costs for your loved ones. In the worst-case scenario, a dispute could mean your estate isn’t distributed in accordance with your wishes.

Reviewing your financial plan when writing or amending your will could be valuable

When you’re writing your will, you’re thinking about what you’d like to happen when you pass away. However, it’s often not an isolated consideration, and reviewing your wishes alongside your wider financial plan could be useful.

The value of your assets now and how you intend to use them during your lifetime might affect who you want to inherit your estate.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate will writing, tax planning, estate planning or trusts.

After months of volatility, markets were relatively calm in August, though economic data was mixed. Discover what factors may have affected your investment portfolio throughout August 2026.

When markets opened on 3 August, it was a good start to the month. Falling oil prices led to the Stoxx Europe 600 index, which provides a broad measure of the European market, being up 0.5%. Similarly, US markets rose when they opened, with the S&P 500 index up 0.5%.

However, the FTSE 100 remained flat, with oil giants BP and Shell dropping 2.8% and 2% respectively on the back of falling oil prices.

The positive performance in Europe continued on 4 August, when the Stoxx Europe 600 was up 0.62% thanks to rising corporate earnings, led by the industrial sector. London’s mid-cap index, the FTSE 250, also reached a record high.

Throughout June and July, technology stocks experienced sharp falls amid concerns that AI companies were overvalued. On 5 August, technology stocks boomed, which could suggest some of the fears have eased.

Asian markets in particular benefited from a jump in technology stocks, with Japan’s main index, the Nikkei, up 3.6% and South Korea’s Kospi rising 4.1%.

UK pharmaceutical company AstraZeneca saw shares rise 4% on 5 August after the company reported there were no discussions about a tie-up with US rival Bristol Myers Squibb (BMS). In contrast, SpaceX, which completed its initial public offering (IPO) in June, saw shares fall by around 12% after it revealed higher-than-expected capital expenditure.

Despite the US posting poor jobs data on 7 August, New York markets opened higher due to an interest rate hike now being less likely. The S&P 500 index was up 0.33%, while the technology-focused index, the Nasdaq, increased by 0.7%.

The middle of August was relatively calm, with markets remaining largely flat. On 24 August, ahead of sanctions being placed on Iran, Wall Street opened lower, including the Nasdaq declining 0.4%.

After years of speculation, Shein’s IPO announcement was made on 24 August and was underwhelming. The company will list in Hong Kong with a valuation of $27 billion (£19.8 billion), almost half the amount that was speculated.

Once again, technology stocks lifted markets on 25 August. The Nasdaq index was up 0.7% thanks to US inflation data and AI giant Nvidia.

In Europe, markets were mixed. The FTSE 100 was down 0.15%, and Germany’s DAX increased by 0.65%. However, the main indices in Spain dropped and France remained flat.

UK

The UK government will deliver the Budget in October. It will be John Healey’s first Budget as chancellor and economic data could affect his decisions.

Figures from the Office for National Statistics (ONS) show GDP grew by 0.4% in the second quarter of 2026 thanks to the World Cup and good weather encouraging people to spend more. It follows growth of 0.6% in the first quarter of the year and represents a strong first half of 2026.

However, professional services firm EY warned that the UK economy could fall into a recession if the Strait of Hormuz remains closed. The firm suggests GDP could fall to 0.5% in 2026 before contracting by 0.2% in 2027.

Further data from the ONS also wasn’t positive. First, inflation was 2.9% in the 12 months to July 2026, compared to 2.6% in June, and above the Bank of England’s 2% target.

In addition, the UK had a larger-than-expected deficit of £1.8 billion in July, which could signal some difficult decisions for the chancellor.

That being said, S&P Global’s Purchasing Managers’ Indices (PMI), which measure economic health, could suggest the economy is strengthening. In July, the readings revealed that:

• Business activity increased for the first time in three months, suggesting firms are more optimistic.
• The construction sector stabilised, with the PMI going from 34.4 in June to 44.7 in July. While the reading is still below the 50 mark that represents growth, it indicates a strong improvement.
• The UK service sector grew by more than expected, with a reading of 52.8 that was linked to sunny weather and technology investment.

Europe

There was positive news for the eurozone economy. In the second quarter of 2026, GDP grew by 0.4%.

Germany’s statistics office revealed that factory orders rose faster than expected. Economists had anticipated a rise of 0.3%, but orders were up 3.1% in June when compared to the previous month.

The Sentix sentiment index, which measures eurozone investor sentiment, unexpectedly moved into positive territory in August.

The latest PMI readings could provide an insight into what’s boosting investor outlook.

Eurozone activity hit an eight-month high with a reading of 52 in July. While the construction sector is still contracting, with a reading of 44.3, it is moving in the right direction.

US

US inflation increased in line with estimates at 3.4% in the 12 months to July 2026, though it remains above the 2% target.

Other economic indicators could also signal challenges ahead. Retail spending fell by 0.6% month-on-month in July, which could indicate that consumers aren’t feeling optimistic.

In addition, economists had predicted that 80,000 new jobs would be created in July. But official data show the economy lost 23,000 roles. The dip could suggest that businesses aren’t feeling confident about the future and it means the Federal Reserve is less likely to raise its base interest rate to try and reduce inflation.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.