Sector Focus: Finance
Preparing for the future
The pandemic has thrown up a host of issues for individuals, families and small to medium-sized business owners, leaving many experiencing uncertainty and even trauma. Sheena Doherty (pictured), a Halifax-based Senior Wealth Management Consultant with Sovereign Wealth,looks at the necessity to safeguard yourself, your family and business in the event of death or serious illness. This applies during the current public health crisis but also going forward.
How would you cope if you lost a key team member? If you’ve taken out loans to tide you
I
over the current crisis, do you have appropriate life assurance and income protection to cover death, serious illness or injury? This will ensure debts are covered, avoiding further financial burden on your business. Also ensure that you
have applied for Government support and grants where appropriate.
f you run an SME consider the impact on your business’s resilience and the impact on its mid and long term future.
It’s also vital that any surviving
shareholders can continue to run the business, with adequate finances in place to support a settlement to your estate - while retaining operational control.
‘How would you cope if
SMEs and legalities In my professional experience, an extremely high number of businesses have no protection - or at best have inadequate legalities in place to protect shareholders. Many business owners incorrectly
assume that their Articles of Association automatically provide this. Instead, it’s vital you have legal
documentation and appropriate protection measures in place. Key points of note are ensuring that
your dependants receive the cash from your business easily.
Planning ahead It’s always a good idea to run a personal risk audit. Consider the financial implications for your family if you suddenly experience serious health issues and/or die. Surveys carried out
you lost a key team member?’
(most notably by Swiss Re) to measure the existence and size of protection gaps in the UK have established that the shortfall is real and
material. Too many are
relying on company schemes - and often there is no provision for income to increase in real terms,
over time. Ask yourself the hard questions - do you
have cover? How much? Is it enough? Have robust conversations with your
adviser founded on carefully and knowledgeably constructed audits. Remember it’s not an opportunity - it’s a responsibility.
For more information about this and other protection matters email Sheena at
sheena.doherty@
sjpp.co.uk
Sovereign Wealth Ltd is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purposes of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at
www.sjp.co.uk/products.
Winter 2021 CHAMBERconnect 69
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84
