The beginning of the tax year is the perfect time for doctors and dentists — anyone really — to get their finances together and start on the right foot. However, financial planning can be daunting, especially with the busy schedule of a healthcare professional. If you’ve never worked with a financial adviser, you might not even know where to begin, but we have a few tips to help you get going on your journey. Read on to learn how to start the tax year right.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
Starting the tax year right
There are many strategies you can employ in your financial plan, such as maximising your tax relief, building a diverse investment portfolio, and crafting a solid estate plan. And the beginning of the tax year is the perfect time to reflect on your current financial situation, put plans in place to work toward your goals, and review any plans you currently have.
Here are a few ways doctors and dentists can help keep their financial house in order at the beginning of the tax year and all year round:
Maximise your annual government allowances
One of the first steps to take to ensure your financial plan is the best it can be is to maximise your annual allowances provided by the government.
These government allowances include:
- ISAs
- Pensions
- VCTs (venture capital trusts)
- Capital gains tax
- Inheritance tax.
Stay positive but remain practical
Some positivity goes a long way when it comes to financial planning. It’s great to look on the bright side when things might not be going your way in the market, but it’s important to remember that not everything will work in your favour sometimes. Be smart with your investments and always invest with your personal attitude toward risk in mind.
A few positive yet practical moves when it comes to financial planning could be making conservative assumptions, tempering your expectations, and identifying/assessing potential risks.
In this same vein, you should consider setting up robust wealth protection so you’re prepared for any scenario that may come your way.
Keep taking steps toward the life you want
Stay focused on your financial goals and the steps you need to take to achieve them by building and reviewing your financial plan regularly. Revisiting the reasons why you are on a particular financial path will help keep your mind in the right place. Whether your priority is taking more holidays, purchasing a home, or saving for retirement, checking in will help you keep your eye on the prize — no matter what it is.
Work with a financial adviser you can trust
Dental & Medical Financial Services specialises in helping doctors and dentists with financial and mortgage advice. We offer advice on mortgages, wealth protection, investments, SIPPS, ISAs, NHS pension planning, business financial protection, estate planning, and of course, tax planning. We’ve been offering our expertise to the community for 30 years and would be happy to help you build or revise your financial plan. Get in contact with us to get started today.