Contrary to how most things are done efficiently, with retirement planning you should really start at the end. In order to plan for the future as accurately as possible, you’ll need to envision what you want your retirement lifestyle to look like. How do you want to spend your time? Learning new hobbies? Spending time with loved ones? Traveling the world? The possibilities are endless.
This does not constitute advice and advice should be sought in all instances before acting on it.
With your currently busy lifestyle, it might be hard to find time to sit down and build a retirement plan, but taking time now to help set you up for later is an essential aspect of financial planning.
Now is when you need to take the steps to ensure your pension and overall financial situation will allow you to live the lifestyle you want in your golden years. Those who are passionate about enjoying life during retirement are more likely to develop a robust retirement plan.
Here are a few ways to help you build a retirement plan.
No need to go it alone
Maybe you think you’re financially savvy and can plan for retirement on your own. But do you really know how to avoid running out of money, how to avoid a hefty tax bill, or even how to go about setting up an inheritance? The truth of the matter is that financial planning is intricate and requires a professional to help you achieve your goals.
From pension contributions and investment planning, there are so many facets of planning for retirement, there’s no way a busy dental or medical professional has the time to master them all. Adding a spouse and/or a family to the equation makes things even more complicated. There is certainly room for risk when it comes to financial planning, but doing it yourself isn’t a risk you need to take.
Financial planning assistance at key stages
While you should be regularly reviewing your retirement plan with your financial adviser, there are certain times when working with a financial adviser makes your life easier, such as choosing how to invest a large lump sum, Inheritance Tax planning, pension planning, or even planning your first house purchase.
But one period of time you might not think would require professional advice that you actually do is when you’re nearing retirement. There are lots of decisions to make as you approach the end of your working life that could greatly impact how you spend your retirement.
How you access your funds is one such example. Should you draw down your pension all at once or over a period of time? Should you take your 25% tax-free cash or leave the money in your pension fund to grow? Is an annuity the right way to go to guarantee an income for the rest of your life or should you go for the drawdown option? Of course, the answers to these questions will be unique to your situation, but with the advice of a professional financial adviser, they’ll be easier to answer.
Help with big financial decisions
Even if you feel sufficiently knowledgable about key aspects of building your retirement plan, seeking professional advice ensures you won’t be making your decisions based on emotions or react rashly to environmental factors. A do-it-yourself approach isn’t worth it when you’re dealing with your future.
Work with an adviser who will provide an impartial, logical approach to your finances and get in touch with the experts at Dental & Medical Financial Services today.