When it comes to financing your retirement, there are different routes to consider. Many people will opt to buy an annuity with their pension pots, giving them a regular income for life, but effectively wrapping up their investing journey.
For others who prefer the idea of pension drawdown (taking an income and leaving the rest invested) how their money is treated will still matter for many years to come. It may well be that investing your money continues to play an important role during the years you spend in retirement.
Looking at the evidence
At Cordiner Wealth we believe the best way to understand how your money might perform in future is to take an evidence-based approach. That means using the results of empirical research and long-term market observations to guide the way we invest your money for you.
We can help you to plan for the future, certainly, but we can’t predict it. We don’t know what the markets will do tomorrow, next week or next year. What we can say is that time and again patience is rewarded and that the smartest way to invest is to understand your risk profile, set clear objectives and stick to them. While you’re doing that, we can help you to keep your costs as low as possible, so your money isn’t being unfairly eroded over the years.
It’s easier said than done, but you should try to ignore market noise along the way, and you should absolutely ignore the returns that other people are getting. Just like your retirement, it’s about you. Investing isn’t a race – people often compare it to a marathon but the problem is that implies competition, which just isn’t accurate.
It’s better to see financial planning as your own personal journey, to your own chosen destination, that takes as long as it needs. There’s no value in measuring against any other yardstick than your own progress towards what you want to achieve.
We’ve put together a short guide called ‘A Smarter Approach to Planning Your Retirement’. In this guide we’ll show you how to make a friend of the future and face the next stage of your life with clarity and confidence.
We’ll be back on the blog next week with Step 7: Think about tax and pensions.
Get in touch
If you’re thinking about retirement, we’d love to find out how we can help. Whether you’ve been planning it for a while, you’re just starting out or it’s finally time to stop putting it off, the right time is now.
Proper planning early on will help you to understand when you can retire, what that retirement may look like, what you’ll do with your business and how you’ll make sure it’s all done securely.
Along with professionalism, expertise and experience, you can count on respect, transparency and a lifelong commitment. We’ll celebrate your successes with you, but we’ll always have the courage to tell you the truth about your money.