The Power of Investing Correctly and Receiving Advice
The Power of Investing Correctly and Receiving Advice
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Everyone knows that is important to save for retirement. Retiring and enjoying life is discussed in 99% of meetings with my clients. This article looks to demonstrate the power of financial planning and the difference this could make to an individual’s objectives and more importantly results. Let’s take the example of two individuals Richard & Dean.
Richard and Dean earn the same, £70,000 each but after 25 years one ends up with £860,924 more without earning a single pound more. Now that’s grabbed your attention let’s take a look at the numbers and how this can be achieved…..
Richard’s Strategy
- He contributes 3% of his salary to his pension (With employer matching contributions)
- He saves £450pm into a standard savings account (earning average 2% interest)
- Richards projected total after 25yrs is £566,535
Dean’s Strategy
- He contributes 8% of his salary to his pension (With employer paying 3%)
- Invests £400pm into a stocks and shares ISA (8% Average Return)
- Deans projected total after 25yrs is £1,427,459
Dean has an extra £860,924 to enjoy in retirement.
How much was the difference in take home pay between these two scenarios? Roughly £110per month. (I’m sure Deans going to be happy with that)
So, what made the difference?
- Higher Pension contributions = More Tax Relief
- Investing via a stock and shares ISA = Long-term Tax-free growth
- Dean has less money sitting in Cash where its losing value in Real Terms
This isn’t about Saving more….. this is about Saving Smarter!!
Conclusion
The exact numbers in this scenario will shift as your income, cost of living, goals and tax rules change. Working as a partnership with a company individual you trust will ensure your objectives are met in an ever-changing world.
This isn’t a fixed formula, the objective here is to suggest that receiving and implementing the right financial advice through life can make huge differences to your end results.
We’re Here to Support You
At Pure Wealth Management, our goal is to provide clear, tailored advice that helps you invest with confidence. Whether you’re just starting out or reviewing an existing portfolio, we’re here to support you every step of the way.
If you’d like to discuss your investment options or review your current plan, please don’t hesitate to get in touch.
Should any of the readers require any advice or have any question in relation to mortgages or any other areas of their financial planning please get in touch mention Businessin Magazine and we will ensure the first consultation is free of charge.
Contact 02922 671957
Email info@purewealthmanagement.co.uk
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