🟣🟢The Art of Consistency

🌅 Hello there…

One of the good things about these gloomy, (very) rainy days we’ve been having this week is that it feels quite cosy to sit at my desk and spend more time on research and writing.

This week I’ve been reflecting on consistency…

The art of consistency in financial planning is a bit like sticking to a fitness routine.

You won’t see results after one workout, but over time, those regular, small efforts lead to a stronger, healthier financial future.

In financial planning, staying focused is key—especially when headlines are full of scare stories about the upcoming budget and potential tax changes.

It’s easy to get caught up in the noise, but making emotional decisions based on fear rarely leads to good outcomes.

The real art is keeping your long-term goals in sight and remembering that steady, well-thought-out actions will always outshine knee-jerk reactions to temporary uncertainties.

🎯BUSINESS OWNERS STRATEGIES
Missed Out on Pension Planning? Here’s How to Catch Up Fast

Lately, I’ve been speaking with several business owners who’ve spent years growing their companies but haven’t made enough time to focus on their pensions.

It’s easy to assume the business will fund your retirement or to plan on sorting it out “later.”

But here’s the good news: it’s not too late to take control of your retirement, even if you’re in your 50s.

Let’s take John, a 55-year-old business owner who’s been so busy growing his company that he’s neglected his pension.

Now, with retirement around the corner, he’s looking to catch up.

The good news?

He can take action today to make up for lost time. John has built a successful business and wants to retire by 65.

Although his pension contributions have been minimal, he has substantial cash reserves in his company, and his wife, Sarah, also works for the business.

These factors open up some fantastic opportunities for pension planning.

Maximise the Carry Forward Allowance

The annual pension allowance for this tax year is £60,000. However, John can take advantage of the carry forward rule, which allows him to use any unused allowance from the past three years.

This means he could potentially contribute up to £200,000 in his first year, giving his pension a significant boost right away.

Make Employer Contributions

As a business owner, John can contribute to his pension through his company.

Employer contributions are tax-efficient, treated as an allowable business expense, which reduces the company’s corporation tax bill.

This is a smart way to use the business’s cash reserves to fund his personal retirement.

Boost Sarah’s Pension

Since Sarah works for the business, she can also receive pension contributions.

By maximising her allowance, the couple effectively doubles their savings, significantly enhancing their future retirement prospects.

The 10-Year Plan

Here’s how John and Sarah’s pension strategy could unfold over the next decade:

Year 1: John could contribute up to £200,000 using the carry forward allowance.

Years 2-10: John and Sarah could each continue to contribute £60,000 annually, maximising their annual allowances.

By following this plan, John could potentially accumulate over £1 million in his pension pot by retirement.

Combined with Sarah’s pension and any other assets, this strategy gives them the foundation for a comfortable future.

Key Considerations…

Investment Strategy: With a 10-year horizon, John should balance growth and risk in his investments.

Business Succession: His exit strategy from the business could also add extra retirement income.

The bottom line? It’s never too late to get your pension on track. With the right plan, you can secure the future you deserve.

Ready to explore your options? Let’s chat about how we can help you take the next step.

🤔 MARKET INSIGHTS
The Art of Consistency…

😎AND FINALLY
This week on Youtube…

This week’s video follows the theme of retirement planning strategies for business owners.

Check it out here (and don’t forget to subscribe if you haven’t already!)
👇👇👇

That’s all for this week!

Hope you enjoyed reading and if you have any questions at all, drop me a note.

Hilary 😎

P.S. GET SMARTER IN LESS THAN 5 MINUTES!
I upload a super short helpful financial video on YouTube every week -

you can check out my channel here!

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