I Wish I Had...

The top 5 financial wishes

For many of us, the start of a new year invariably signifies thoughts of change and resolutions that often encompass health, wealth, family and/or career success.

Here are 5 things people often wish they had financially done differently, but didn’t. Do they sound familiar?

Wish 1: I wish I had…not got stuck in a mortgage deal with no way out

Let’s be honest, mortgage lenders are looking to make a profit by tying in customers to deals that seem OK at the time but, with arrangements that are often found wanting by the end of the term.

A great percentage of mortgage holders also don’t shop around and instead end up accepting deals from their existing lender.

Once in a deal, it is the redemption penalty that can hinder a customer looking to better their mortgage rate elsewhere - an all too familiar scenario in the current climate.

With today’s historically low interest rates, many mortgage holders have been caught out with much higher fixed rates and face large penalties should they wish to change.

The message here is to pay attention to redemption penalties when deciding the best way forward with your mortgage.

Whether you opt for a tracker, fixed or variable rate, the redemption penalty is the single issue that can stop flexibility and your ability to change course when necessary.

Don’t leave yourself in a tight squeeze when others are benefitting!

Wish 2: I wish I had…planned for school fees or university

Having children has never been a cheap hobby and this is certainly the case when it comes to educating them.

Time is key. Funding your children’s education may come from a source of investment, retirement income, monthly earned income or a mixture of any or all of these.

If the ‘where is the money going to come from’ question is addressed early on, the scope for investing and saving becomes much greater.

It allows for possible better returns and avoids a scramble for cash from a monthly budget that is perhaps already straining to meet existing commitments.

Wish 3: I wish I had…started retirement planning earlier

You’d think twice about going on holiday if you only had access to half the amount of spending money required. Why put yourself in that position at retirement.

With pension benefits for those in the NHS becoming more expensive and less beneficial in the long term, how many of you wish you had started providing additional funds years ago?

Think about it. If you are 40 wanting to retire at 60, you have 240 pay days left to change the outcome. If you are 50 with no retirement plan in place, it comes down to damage limitation.

Starting to climb Ben Nevis tomorrow could stop you from having to go up Everest later.

Wish 4: I wish I had…invested in myself

Whilst the NHS ill health benefits are great, they do have their limitations. If you become ill in the first 25 years of service, you’ll certainly receive some income. It’s unlikely though to be anywhere near enough and certainly won’t take into account any private income lost.

‘If I didn’t have a bad back, poor knee through football, depression x years ago or it wasn’t so expensive with the exclusions, I would take out income protection tomorrow.’ Now where have I heard that before?

Hindsight is great but so is foresight.

Income protection underwrites your biggest financial asset – your ability to earn. We all get ailments such as those mentioned above but income protection cover is cheapest when it’s taken out at the earliest moment possible with no exclusions.

You’re essentially investing in yourself by protecting your hard earned lifetime savings.

Wish 5: I wish I had…passed or received an estate intact not less 40%

Whether you’re the recipient of inheritance or you’re wanting to pass on your estate to your loved ones, a lot of inheritance tax (IHT) planning is unfortunately often left to the deathbed.

40% tax is paid on assets passed on by an individual where they are in excess of £325,000. Nobody wants that, especially as income tax and capital gains tax has probably already been paid on this accumulated wealth.

Gifting, transferring assets, arranging trusts or arranging life assurance when individuals are healthy are just some of the simple ways you can mitigate inheritance tax.

Once again time is key for IHT planning to be successful and the most effective. It often requires plans or arrangements to be put in place many years before a person’s death for several thousands of pounds to be saved at a later date.

What do you wish you had done differently?

Why not let us know on Twitter, Facebook or by emailing us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . We’d love to hear your thoughts.

“Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did do.” Mark Twain

Article by Mike Rawson
IFA to Doctors and Dentists
January 2012