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Jun 03 2025

Why defining “financial freedom” could help you achieve it

Achieving “financial freedom” is an aspiration many people have. Yet, it can mean different things to each person and is influenced by other lifestyle goals, so defining how to measure it for you could help you turn it into a reality.

Securing financial freedom so you can retire with confidence is a common goal.

A January 2025 Legal & General survey asked people what their perfect retirement would look like. The top answer was “living stress-free without financial worries”. Correspondingly, the biggest barrier to retirement was financial concerns, which ranked higher than potential health issues and fear of boredom.

Some modern money trends have arisen from the desire to achieve financial freedom too.

For example, FIRE, which stands for “financial independence, retire early”, involves workers devoting large portions of their income to savings and investments. Followers of the movement aim to retire from traditional work as soon as possible and live off the passive income their assets generate.

The common theme among people working towards financial freedom is to live the lifestyle they want, including giving up work if they choose, while maintaining their financial security. However, how much you need to do this can vary enormously.

So, setting out what financial freedom would look like to you could be useful. Answering these two questions may provide a useful starting point.

  1. What do you want the freedom to do?
  2. What do you want to be free from?

Read on to find out what you might consider when reflecting on these questions and how financial planning could help you create an effective road map to financial freedom.

Setting out the lifestyle you want to enjoy

To calculate how much you need to secure financial freedom, you need to understand how much your desired lifestyle will cost. This is where you think about what you want the freedom to do.

Some people would prefer to live more frugally if it meant they could step back from work sooner, while others might be looking forward to a more luxurious lifestyle. From how often you’d like to eat out to what holidays you’d like to take, setting out lifestyle expectations is an essential step.

So, answering questions like those below may help you define what financial freedom means for you.

  • What would your day-to-day lifestyle and spending look like?
  • How could your income needs change during your life?
  • Are there one-off costs you need to consider?

It may be useful to break down your income needs into essential and non-essential spending. This way, you could understand how adjusting your lifestyle might mean you’re able to reach financial freedom sooner – would you choose a lifestyle that involves spending less if you could retire earlier than expected? 

Understanding your worries is important for financial freedom

To fully enjoy the lifestyle you want, you often need to have confidence in your finances. So, when you’re thinking about what you want to be free from, concerns and worries are common.

For example, to make the most of financial freedom, you might benefit from being free from worrying about:

  • The potential long-term effects of inflation
  • How you’d cope if you faced a financial shock
  • How periods of investment volatility could affect your income
  • If your partner would be financially secure if you passed away first.

Addressing these concerns when you’re setting out what financial freedom means to you could help you take steps to protect your long-term financial security and ease your mind.

Modelling your finances could demonstrate how you could achieve financial freedom

Armed with your answers to the above questions, your financial planner can work with you to create a financial plan that focuses on securing financial freedom.

As you’ll typically need to consider the long-term effects of saving, investing, spending, and more, a cashflow model may be a valuable tool. Cashflow modelling could help you visualise how the value of your assets might change over time.

For example, you could see how the value of your investment portfolio might rise over the next decade as you divert more of your income to it. Once you give up work, you might draw an income from your investments. A cashflow model could show how the value would change depending on the withdrawal rate, investment returns, and how long it’ll be used to create an income.

As a result, cashflow modelling could help you calculate how much you need to be financially secure.

You can also model different scenarios on a cashflow model, which may be useful for addressing the concerns you want to be free from. For instance, you might adjust expected investment returns to understand how a period of volatility could affect your long-term finances.

Being aware of the potential risks often gives you an opportunity to create a financial buffer or take other steps to mitigate the effects. So, cashflow modelling could mean you’re able to enjoy your financial freedom, rather than worrying about what’s around the corner.

It’s important to note that the outcomes of a cashflow model cannot be guaranteed, but the information can provide valuable insights and help you make more informed financial decisions.

Get in touch to talk about what financial freedom means for you

If you’d like to talk to one of our team about your financial plan or how we could help you reach your goals, please get in touch.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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 Financial Conduct Authority does not regulate cashflow modelling.

Written by SteveB · Categorized: News

Jun 03 2025

Investment market update: May 2025

Uncertainty continued to lead to market volatility in May 2025. However, there was some good news for investors as some markets recovered the losses they experienced in April 2025. Read on to find out more and what factors may have influenced your portfolio’s performance recently.

While market movements may be worrisome, remember, it’s a normal part of investing. Keep your long-term goals and strategy in mind when you review how the value of your investments has changed.

Tariff announcements continued to affect markets towards the end of May 2025

The month got off to a good start for investors – the FTSE 100, an index of the largest 100 companies listed on the London Stock Exchange, recorded its longest-ever winning streak. On 3 May, the index had made gains for 15 consecutive days and almost recovered all the losses that followed tariff announcements in April.

The European markets experienced some volatility at the start of the month as Friedrich Merz lost the vote to become Germany’s chancellor. It led to some calling for a fresh election, and also uncertainty – on 6 May, the German index DAX fell 1.9%.

After a tit-for-tat trade war sparked investor fear in April, many were optimistic when trade discussions between the US and China began on 7 May. Combined with the People’s Bank of China cutting interest rates by half a percentage point, this led to Asian stocks lifting. Indeed, the Shanghai Composite rose by almost 0.5%. 

This was followed by Donald Trump, president of the US, announcing a “full and comprehensive” trade deal with the UK. When markets opened on 8 May, Wall Street was up 0.6%.

Hope that other countries will also reach agreements with the US lifted European markets. The DAX in Germany increased by 0.6% to reach a record high, while France’s CAC was up 0.5% on 9 May.

Wall Street surged on 12 May when it was revealed the US and China had agreed to a 90-day pause on tariffs. The Dow Jones Industrial Average (2.3%), S&P 500 (2.6%), and Nasdaq (3.6%) all rallied.

Similarly, when markets opened in Asia, Chinese indices jumped, particularly technology and financial stocks.

However, the positive news didn’t last throughout the month.

On 19 May, credit ratings firm Moody’s downgraded the US’s rating from triple-A to Aa1. The decision was linked to the growing US national debt, which is around $36 trillion (£26.6 trillion) and rising interest costs. The announcement led to global volatility.

What’s more, on 23 May, Trump threatened further tariffs, which led to markets falling.

In a bid to encourage technology giant Apple to make its iPhone in the US, Trump suggested the company could face a 25% tariff. Apple’s shares fell by around 3% before markets opened after the comments were made.

Trump also said EU imports would face a 50% tariff from the start of June. He added he wasn’t looking to make a deal with the bloc, but instead wanted EU businesses to build plants in the US. The news led to falls across European markets, including the DAX (-1.9%), FTSE 100 (-1.1%) and Italy’s FTSE MIB (-2%).

However, just a few days later, on 28 May, Trump agreed to delay EU tariffs and suggested meetings would be arranged to discuss a trade deal.

UK

The Bank of England (BoE) decided to cut its base interest rate by a quarter of a percentage point to 4.25% – the lowest rate in two years – at the start of the month.

However, inflation data may raise concerns for the BoE. While inflation was expected to rise, it was higher than predicted. In the 12 months to April 2025, inflation was 3.5%, with increasing energy costs playing a key role in the rise.

GDP data was positive. The UK grew by 0.7% in the first quarter of 2025, making it the fastest-growing G7 economy. Yet, the think tank Resolution Foundation warned a rebound is unlikely, and it expected April data to be weaker.

The UK unveiled a trade deal with India, covering a range of products from cosmetics to food. The agreement represents the biggest trade deal since Brexit in 2020 and is expected to increase bilateral trade by more than £25 billion over the long term.

While many businesses are worried about the potential effects of trade tariffs, aerospace and defence firm Rolls-Royce said it could offset the impact. CEO Tufan Erginbilgic said the company expected to deliver an underlying operating profit of between £2.7 billion and £2.9 billion in 2025 on 1 May, which led to share prices increasing by 2.7%.

The firm benefited from a further boost of 4% on 8 May when the UK-US trade deal was announced.

However, other firms aren’t expected to fare as well.

Drinks company Diageo, which produces around 40% of all Scotch whisky, predicts it will lose around £150 million due to tariffs.

Europe

Inflation in the eurozone continued to hover above the 2% target at 2.2% for the 12 months to April 2025.

Eurostat lowered its estimate for economic growth in the eurozone in the first three months of the year to 0.3%. In the first quarter of 2025, Ireland boasts the fastest-rising GDP (3.2%), while contractions were measured in Slovenia, Portugal, and Hungary.

Unsurprisingly, the European Commission also cut its growth forecast for the eurozone in 2025 from 1.3% to 0.9%. It said this was “largely due to the increased tariffs and the heightened uncertainty caused by recent abrupt changes in US trade policy”.

HCOB’s PMI output index for the eurozone fell from 50.9 to 50.4 in April – a reading above 50 indicates growth. While still growing overall, it’s notable that France’s private sector contracted for the eighth consecutive month and Germany’s output barely rose. However, there was a strong increase in Ireland, and Spain and Italy also expanded.

There is potentially good news on the horizon. Germany’s factory orders jumped by 3.6% in March as companies tried to get ahead of tariffs.

US

Trump’s tariffs, which aim to reduce the trade deficit, have initially, at least, had the opposite effect.

As businesses tried to stock up before new tariffs were imposed on goods from abroad, the US trade deficit reached a record high in April. The deficit increased by $17.3 billion (£12.8 billion) to $140.5 billion (£104 billion).

GDP data also suggests Trump’s policies are having a negative effect on the economy. In the first three months of 2025, GDP fell by 0.3%; this is in stark contrast to the 2.4% rate of growth recorded in the final quarter of 2024. It marks the first time the US economy has shrunk in three years.

The University of Michigan’s index of consumer sentiment indicates households are worried about their finances. Americans are concerned about potentially weakening incomes, with the index falling 26% year-on-year.

Tariffs are expected to affect a range of businesses, including the car manufacturing sector.

The three big US car manufacturers – General Motors, Ford, and Stellantis – all have some manufacturing facilities in Mexico or Canada that serve the US market and are likely to be affected by trade tariffs.

General Motors expects tariffs to cost the company as much as $5 billion (£3.7 billion) this year. Similarly, Ford has said tariffs will cost around $1.5 billion (£1.1 billion) in profits this financial year and has suspended its guidance while it seeks to understand the full impact of consumer reaction and competitive response. 

Asia

At the start of the month, the Bank of Japan cut its economic growth forecast for the fiscal year ending March 2026 from 1.1% to 0.5%. The bank cited trade policies as the reason for the fall.

Indeed, GDP for the first quarter shows Japan’s economy contracted by 0.7% due to a decline in exports and private consumption as households cut back their spending.

Trade between China and the US fell sharply in April. Shipments to the US fell 21% year-on-year, and imports declined by 14%. However, the data suggests that Chinese manufacturers have found alternative markets. Overall exports jumped by 8.1% compared to the forecast rise of 1.9%.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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.

Written by SteveB · Categorized: News

Jun 03 2025

How to improve your financial resilience

This guest blog was written by Chris Budd, who wrote the original Financial Wellbeing Book, and also the Four Cornerstones of Financial Wellbeing. He founded the Institute for Financial Wellbeing and has written more than 100 episodes of the Financial Wellbeing Podcast.

Financial wellbeing is a broad term that encompasses all aspects of the relationship between money and happiness.

Some of these aspects are things that we can do to improve that relationship and thereby enable better financial decisions. In particular, there are many things that we can do to change how we deal with money daily. We might call this “financial resilience”.

How can we improve our financial resilience?

There are five parts to improving our financial wellbeing:

  • Creating a clear path to identifiable objectives
  • Having financial options
  • The ability to cope with a financial shock
  • Gaining control over daily finances
  • Having clarity and security for those we leave behind.

The first of these describes having a financial plan. In particular, the importance of taking time to think about those objectives from a wellbeing standpoint.

This is a longer-term view. But to achieve that plan, we also need to think about our relationship with money over the short term to ensure that we have control over our daily finances.

Engaging with your finances

There is one overarching principle to having a better relationship with money: engagement.

Too often, we ignore money, hoping that things will “sort themselves out”. This is the enemy of wellbeing. Engaging with money means understanding its importance in our lives (hint: it’s a lot less important than we often think!).

By engaging with our money, we start to understand what it enables us to do – and what we don’t need it for. For example, why not take some time to look at your bank statement and do some quick sums on how you are spending your money? Just this small act can be revelatory!

It’s also a good idea to make sure that your dependents also know some details of your financial affairs. Get control of the finances, and this act alone will increase your resilience.

A few practical steps

Once you have begun to engage, there are a few specific actions you might take. Some are obvious, such as getting your will up to date (tip: if appointing a third party as executor, be wary of using an institution such as a bank. Clarify future fees beforehand, or you might leave an unpleasant problem behind).

It’s always best to use a solicitor to draw up a will, and it’s a good idea to make sure your financial adviser has a copy.

Gaining a better understanding of what brings joy into our lives helps us reduce the time that we spend comparing ourselves with others. We rarely compare down and feel good – it’s far more common to compare up and feel bad. Taking time to understand what brings joy to our lives reduces the negative impact of those comparisons.

Just getting things in order can be of great help. Make sure all your loved ones have been introduced to your financial adviser. Even just compiling a list of policies, savings and pension plans can help reduce worries and thereby increase resilience.

Experiences over stuff

If we spend our money on buying stuff, the wellbeing we get tends to be relatively short-lived. Once we have worn, read, listened to, looked at, and eaten the thing that we have bought, the wellbeing we get from it diminishes rapidly.

In contrast, if we spend money on an experience, the wellbeing we get comes in the form of memories, which are much longer-lasting.

Consequently, we can increase our financial wellbeing by spending money on experiences – and if those experiences are with our loved ones, or perhaps even a trip to see someone you haven’t seen for a long time, then the wellbeing increase is even greater.

Buying tickets for future events as presents is a great way to increase wellbeing. There is the wellbeing of giving the present, the anticipation of the event, and then the memories from it.

Increasing financial resilience

Financial resilience comes from having control. By engaging with our finances, we can develop a better relationship with money. In this way, we can develop a better understanding of how money can improve our wellbeing, and reduce how it inhibits our wellbeing.

By engaging with our finances, we can improve our financial resilience and thereby ensure that money acts as our servant, rather than our master.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

Written by SteveB · Categorized: News

May 06 2025

Guide: The compounding effect: How it could boost or harm your finances

When a 1920s ad referred to compound interest as “the eighth wonder of the world”, the quote was left unattributed. But that didn’t stop it from becoming synonymous with the celebrated physicist, Albert Einstein.

The link was likely intended to lend credibility to a statement that at first glance seems bold. And yet, compounding could be key to the success of your long-term financial plans.

As Einstein did or didn’t say, “He who understands it, earns it, he who doesn’t, pays it.” Whoever did say this, knew what they were talking about.

The compounding effect – essentially growth on growth that snowballs over time – can have an enormous impact on your finances. It can significantly increase the size of your savings and investments in the long term but, if not carefully managed and understood, it can also work against you.

This handy guide clearly explains how compounding works, and provides examples of how it might boost or harm your financial circumstances.

Download your copy here: “The compounding effect: How it could boost or harm your finances” to find out why compounding may be an essential part of your long-term financial plan.

Please get in touch if you’d like to speak to one of our team about how we could work with you.

Please note: This guide is for general information only and does not constitute advice. The information is aimed at retail clients only.

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 Financial Conduct Authority does not regulate cashflow planning.

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. Past performance is not a reliable indicator of future performance.

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. 

Written by SteveB · Categorized: Guide

May 02 2025

Investment market update: April 2025

Once again, US president Donald Trump’s trade tariffs have affected investment markets throughout April 2025 and could have far-reaching implications over the coming months.

Indeed, UN Trade and Development now predicts that global growth will slow to 2.3% in 2025, compared to 2.8% last year.

While experiencing volatility can be daunting as an investor, remember to take a long-term view. Historically, markets have recovered from periods of downturn. However, it’s important to note that investment returns cannot be guaranteed.

Trade tariffs and their effect on the market in April 2025

Since Trump took office in January, uncertainty around trade policies has affected global markets, and these announcements continued to have an effect in April. 

On 2 April, markets prepared for key tariff announcements from the US, dubbed “Liberation Day” by the White House.

The speculation led to a European stock sell-off gathering pace, with pharmaceutical shares being particularly affected. The Stoxx 600 healthcare index, which is composed of European businesses in the healthcare sector, fell by around 2.5%.

On “Liberation Day”, Trump announced sweeping two-tier tariffs. A baseline 10% tariff was applied universally to imports from all countries (except Mexico and Canada) and then additional country-specific “reciprocal” tariffs were also applied.

As a result, on 3 April, markets around the world plummeted when they opened – from Tokyo’s Nikkei (-3.4%) to London’s FTSE 100 (-1.4%). In fact, Wall Street recorded its worst day since 2020 as the S&P 500, which tracks 500 leading companies in the US, closed 4.9% lower.

On 4 April, Beijing retaliated and announced 34% tariffs on the US.

As the market continued to fall, it didn’t stop there, with both the US and China increasing their tariffs several times. By 11 April, China’s tariff had reached 125% and the US’s was 145%.

Amid this tit-for-tat trade war, Trump announced a 90-day pause on reciprocal tariffs for most countries, which led to markets rallying.

Despite the uncertainty experienced throughout April, the market began to settle towards the end of the month. On 24 April, the FTSE 100 closed 0.65% higher than it opened and was back to the level it was on 3 April before the tariff volatility. It was a similarly positive day for the main indices in Germany and France.

UK

Headline data was mixed for the UK in April.

Figures from the Office for National Statistics show the economy unexpectedly grew by 0.5% in February. While this will certainly be welcome news for chancellor Rachel Reeves, experts predict a downturn in March due to the tariffs. 

Inflation also fell in line with expectations to 2.6% in the 12 months to March 2025, compared to 2.8% a month earlier. The Bank of England hinted it could cut the base interest rate at the next Monetary Policy Committee meeting in May.

However, readings from S&P Global’s Purchasing Managers Index (PMI), which provides an insight into the health of businesses, aren’t optimistic. 

The PMI indicated manufacturing production fell at a faster pace in March as new orders declined at the sharpest rate in 19 months.

In addition, the private sector went into decline for the first time since October 2023 due to exports falling at the fastest pace in almost five years.

Europe

Eurostat data shows inflation was down across the eurozone to 2.2% in the 12 months to March. There was a significant variance between countries, from France (0.9%) to Romania (5.1%).

The figures paved the way for the European Central Bank to make its seventh cut to interest rates in the last 12 months. The main interest rate fell from 2.5% to 2.25%.

PMI data was more positive for the eurozone than the UK.

Factory output increased for the third consecutive month and crossed the threshold that indicates growth for the first time in two years. This boost is linked to orders rising as businesses tried to beat incoming tariffs.

Perhaps unsurprisingly given market volatility, a survey from the ZEW Economic Research Institute found German investor morale plunged to the lowest level since the start of the war in Ukraine. The president of the institute pointed to the “erratic change in US trade policy” as a reason.  

US

There could be difficult months ahead for the US. The International Monetary Fund increased the probability of a US recession occurring in 2025 from 25% to 37%.

Tariffs affected more than the markets too. Uncertainty around trade policy led to factory production stalling, according to S&P Global’s PMI. However, at 50.2, the reading remained just above the 50 mark that indicates growth.

Similarly, the PMI showed US business activity fell to a 16-month low.

Some of the largest businesses in the US have suffered a setback due to the tariffs.

On 3 April, Apple shares were down by 9%, wiping $300 billion (£225 billion) from the company’s value. The business relies on imports from Asia and is likely to face higher costs as a result.

Tesla’s quarterly sales also indicated challenges as they slumped 13% in the first three months of the year. The fall was linked to strong competition from rivals and owner Elon Musk’s involvement with Trump’s presidential campaign.

Asia

Exports from China climbed by 12.4% year-on-year in March – a five-month high. The jump was caused by factories rushing to get shipments out before tariffs took effect.

There was a blow to China when Fitch downgraded its credit rating from A+ to A. The organisation said the decision was made before tariffs were considered and is due to China’s rising debt and deteriorating public finances.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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.

Written by SteveB · Categorized: News

May 02 2025

How to use an unexpected windfall to create long-term prosperity

If an unexpected lump sum lands in your bank account, you might be tempted to splash out and treat yourself. However, using a windfall effectively could create long-term prosperity.

There are plenty of reasons why you might suddenly receive a cash injection. Perhaps you’ve received a bonus from work or inherited assets. Whatever the reason, before you start making plans, read on to find out how you might use it to improve your long-term financial security.

Favouring savings could mean UK adults miss out on long-term growth

A February 2025 study from Aegon asked UK adults how they’d use an unexpected £5,000 bonus. Encouragingly, 70% would prefer to save for the future or pay off existing debt than spend it on themselves.

However, many would miss out on long-term growth opportunities as they favoured holding the money in cash – 27% would deposit it in a savings account and 16% would use a Cash ISA. In contrast, just 9% would invest in stocks and shares and 5% would invest through their pension.

While cash can seem like the “safe” option, the interest rate is likely to be lower than potential investment returns. So, while intentions might be good, they could be missing out on an opportunity for long-term growth.

Investing isn’t always the right option if you’ve received a windfall but it’s important to weigh up the pros and cons. Here are six useful steps that could help you identify how to use an unexpected cash injection in a way that reflects your goals.

1. Set out your financial goals

You can’t make a decision that reflects your goals if you haven’t defined what they are.

So, before you start thinking about how to use the money, answer these questions: What are your main financial goals, and when do you want to achieve them?

Your answer can provide direction for the decisions you make next. For example, if you said you wanted “to create a nest egg to give my child in five years”, the most effective way to use the money would be different than if your answer was “to retire in 20 years”.

2. Assess your current finances

A windfall might seem separate from your day-to-day finances. Yet, taking the time to understand your current financial position and how the additional money could be used to support your existing financial plan is likely to be valuable.

For instance, the Aegon research found 12% of people would opt to pay off debt.

Paying off debt may make financial sense and have a positive effect on your overall wellbeing – many people feel relief and a sense of achievement when their mortgage is paid off.

In addition, lowering your regular outgoings might provide you with greater freedom. Perhaps you could reduce your working hours or change your role as a result.

3. Review your financial safety net

While part of your wider financial plan, it’s worth paying particular attention to your financial safety net when reviewing your current position.

You may hope to never need your emergency fund, but, should something unexpected happen, a financial safety net is invaluable.

A common rule of thumb is to have six months of expenses in an easily accessible account that you could use in an emergency, from a roof repair to needing to take time off work due to an illness. Going through your financial commitments could help you set an emergency fund target that’s right for you.

You may also want to consider financial protection. Several types of protection would pay out either a lump sum or regular income when the conditions are met. For example, income protection would normally provide you with a portion of your salary if you need to take time off work because you’re ill or injured.

4. Consider if investing is right for your goals

When you’ve received a windfall, one important decision is whether to save or invest the money.

Usually, a savings account makes sense if you’re goal is within the next five years or you might need access to the money at short notice, such as your emergency fund.

On the other hand, if you want to build long-term prosperity, investing might be the right option for you.

It’s not possible to guarantee investment returns. However, markets have, historically, delivered returns over a long-term time frame. So, if you aim to turn a windfall into wealth that could support long-term goals, investing may help you get more out of your money.

5. Add money to your pension

If you decide investing is right for you, don’t overlook your pension.

A pension provides a tax-efficient way to invest for your retirement. Tax relief provides an instant boost to your contributions, and the potential to benefit from decades of compound returns might turn an initial lump sum into a way to create a comfortable retirement.

However, you can’t usually access the money in your pension until you turn 55 (rising to 57 in 2028). So, it’s important to understand your goals and time frame before you boost your retirement pot.

6. Seek professional advice

Working with a regulated financial planner gives you a chance to really consider what you want to get out of the windfall, and how you might achieve that. As well as creating an initial blueprint, ongoing financial advice could help ensure you remain on track and that your plan is updated to reflect changes in your goals or circumstances.

Please get in touch to arrange a meeting with one of our team.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

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 Financial Conduct Authority does not regulate NS&I products.

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. Past performance is not a reliable indicator of future performance.

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. 

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

Written by SteveB · Categorized: News

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