😉🎂 Are You Missing Out?

🌅 Hello and welcome! 

In this week’s Financial Stuff:

• 🎂Birthday thoughts.

• 🎯Pensions. Pensions. Pensions.

• 🤔 Choose your own investment journey.

👇 Let’s get started…

It’s my birthday soon.

I’m not a fan of my birthday (other peoples I love).

But I do like to use it as a marker, the start of my unique new year.

A time to review, reflect and reset.

And, in the month leading up to my birthday, I often set myself a health goal.

I have a list of carefully considered guidelines that I will remind myself to follow.

I want to start my new year feeling leaner, fitter and more energised.

Each point on the plan is minor taken on its own.

I’m not going to see results from just drinking more water every day.

But put together, they add up to a proper thought through plan.

That I know, from past experience, will get me where I want to be by my birthday.

As long as I follow the plan, of course.

And that’s where people come unstuck when it comes to financial planning.

Not having any sort of plan in the first place.

Or, if they have a plan, forgetting they have a plan and not following it.

I’d say it’s a strong reason for employing someone else who isn’t emotionally involved.

A coach or personal trainer to tell you what exercises to do, how to do them and when.

Or a financial planner or adviser to show you where you are financially, where you need to get to, and how to do it.

And unlike a personal trainer, the financial planner can actually do some of the leg work for you 😉 🏋️‍♀️

🎯BUSINESS OWNERS STRATEGIES
Pensions. Pensions. Pensions.

We have very little opportunities to save tax or gain tax breaks in the UK.

Yet still people are not properly taking advantage of the ones we do have.

A recent report by Scottish Widows reveals that 38% of people are now on track for living standards in retirement below the minimum level set by the Pensions and Lifetime Savings Association (PLSA).

That’s only £14,400 per year for a single person, £22,400 per year for a couple.

This level covers basic needs, including essentials like food, utilities, transport, and some leisure activities. For instance, it includes a weekly grocery budget of around £54, one UK holiday per year, and occasional social outings. It does not account for owning a car.

It’s an increase from 35% in 2023, meaning an additional 1.2 million individuals at risk of facing poverty in retirement.

This trend underscores the importance of mindful retirement planning, especially for business owners who often face unique financial challenges.

Business owners often rely heavily on the ongoing profitability of their business for future income. But this can be unpredictable.

To mitigate this risk, it's essential to diversify and build financial security outside of your business.

Start making significant company pension contributions. Increase them regularly.

If another family member, a spouse or child, is employed by the business you can also make significant company pension contributions for them.

Don’t just use the bog standard company workplace pension. Choose the right pension plan for you, such as a Self-Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS).

Ensure your pension fund invests in a diversified investment portfolio.

Regularly assess and rebalance it to maintain the best balance of risk and return.

Get help from an experienced financial adviser if it’s not your area of expertise or you don’t have time to give it proper attention.

Many business owners have substantial wealth tied up in their business but don’t have a well defined exit strategy for unlocking this value.

Whether through a gradual sale, passing the business to a family member, or something else, it needs to align with your retirement goals.

This strategy helps ensure financial security and a smooth transition into retirement, whatever you want that to look like.

🤔 MARKET INSIGHTS
Choose your own investment journey.

😎AND FINALLY
This week on Youtube…

This week’s video is all about SSAS - small self administered pension schemes - perfect for family businesses that want their own unique pension fund for Mum, Dad and the kids.

Also works well for business owners and entrepreneurs who fancy owning commercial property in their pension.

Check it out here 👇👇👇

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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