Page 66 • The HERALD • 1st August 2024 v THE HERALD - Proud to be part of your community v ASK A PROFESSIONAL THE 4 FINANCIAL PILLARS YOU NEED TO BUILD by Michael Osman, Oyster Financial Planning I quite o en have a conversation with a new client, where I get asked: “How much should I be putting into my pension?” “Should I pay off my mortgage?” “How much cash should I keep hold of?” “When can I retire or at least slow down?” Some people are fascinated by having a huge pension fund, some people are driven to clear their mortgage as young as possible. I’ve had clients driven by both of these nancial objectives. Quite simply, if we take the rst question above, there is no easy answer! Without having a comprehensive, robust and highly nancial plan in place you cannot accurately and honestly answer these questions. ere are so many variables and assumptions and factors to consider. One of the key conversations we have with clients is based on balance. It’s ok striving for that huge pension fund, because you are competing with your work colleague. I had this once with someone who was hell bent on having a £1 Million pension fund, all of his spare money and some that wasn’t spare (going without holidays for the family) went into his pension. is is ok, as long as other aspects of your nancial life are catered for as well. We certainly advocate for a short-, medium- and long-term strategy to secure the 4 pillars of nancial stability when looking into the future at retirement. One caveat being that life still needs to be fun and enjoyable whilst you strive to get there with protection in place for your family should sadness strike. So, for maximum security and exibility in retirement we look at the following 4 pillars. 1. Property – Own your house and clear the mortgage over time (if you have more than one and forms part of your retirement, then great). 2. Have a sizeable amount in your pension funds, enough ideally to at least cover your typical lifestyle costs in retirement (state pension on top). 3. Have su cient cash in tax-e cient investments such as Cash and Stocks & Shares ISAs to draw down to top taxable pension income and help cover holiday costs. 4. An emergency fund su cient for unexpected bills, and quick unplanned capital expenses, sizeable enough to not have to draw on investments. If you can gradually build these pillars throughout your working life, whilst still living a good life and protecting your family against sudden tragedy or illness you will give yourself lots of options and exibility into early retirement and beyond. To see if your 4 Pillars are growing and on track why not get in touch with Oyster Financial Planning based in the village, or email michael@oyster nancialplanning. co.uk or call 023 8084 8410. Michael Osman, Oyster Financial Planning
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