Meghan and Harry’s financial plan
Most people seek out financial advice at a time of big change in their lives.
If you’re having a baby, for example, or moving to a new country, or even getting cut off from the family finances. Or, you know, all three at once, and under the prying eyes of the papers and the public.
Whatever you think of Meghan and Harry’s decision to take a step back from royal life, it’s fair to say their finances are going to look very different now that they’re not going to be taxpayer-funded.
So, what recommendations does our financial advice team have to offer the Sussex Royals, after #Megxit?
Pay off debt
They now owe the Queen an eye-watering £2.4 million for the recent revamp to their UK home, Frogmore Cottage. It’s always a good idea to try and clear any high-interest debt as a priority, although as this is a loan from friends and (royal) family, the interest might not be racking up too quickly.
Build an emergency fund
You could argue that the couple have already had their fair share of emergencies. But they’ve said publicly that their goal is to be financially independent, and that means having some spare cash in the bank for curveball costs or rainy days.
Given that, along with his brother, Harry inherited the bulk of the £13m fortune left by their mother Princess Diana, and Meghan reportedly earned $50,000 (£38,300) per episode of Suits, they’re probably covered on this front.
Still, if they don’t already have a piggy bank, they should get on that as a priority. And when we say piggy bank, we mean an easy-access savings account. Our top picks? The Cynergy Bank Online Easy Access, Marcus by Goldman Sachs, or Saga Easy Access.
Get life insurance
Meghan and Harry are new parents, and they need to consider what will happen to little Archie if they’re not around. Life insurance would pay out to Archie, plus any other dependents, if they were to die within the insurance term, which would ideally be until he turns 21.
We’d recommend Family Income Benefit (FIB) which pays out in regular instalments, meaning Archie wouldn’t have to pay tax on the income or worry about managing a lump sum. A £60,000 FIB policy to cover Archie until adulthood would set the Sussex Royals back £58.61 per month.
Goal: career change
Meghan already has a profession, but Harry’s going to need to look into a career change. Changing jobs often involves retraining to equip yourself with new skills, and that can be expensive. Some people also need extra savings to tide them over between jobs.
We’d recommend that Harry adds a savings goal to work towards a career change. Whether that’s saving up to take an acting course so he can join his wife, or getting the money together to launch the family business of selling Sussex Royal-branded merch, we wish him well.
Goal: buy a home
They may already have a UK home at Frogmore Cottage, but real estate in Canada isn’t cheap. The royals might need a bit of help working out how much they need to put aside to get themselves onto the property ladder over there.
They should also check out their credit score in case they need to take out a mortgage. Some people turn to parents for help with getting a deposit together, but was that agreed as part of the Megxit deal? We’re not privy to that information. Whatever their specific circumstances, we’d recommend they add a property goal to start saving up for that special somewhere.
*This is not actual financial advice, and makes several assumptions about Meghan and Harry’s circumstances, including their tax status. If you’d like a financial plan of your own, get yourself onto the Multiply app.