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Don't Mention The "R" Word

When I first started giving financial planning advice back in the late 90s, a typical client conversation would be centred around a desire to retire around the age of 55, with no real discussion about what happens next. The modern version of this is the FIRE movement (financial independence, retire early). The idea is to reduce your expenditure to an absolute minimum and aggressively invest as much as possible to be able to afford to finish work at an early age. I’ve yet to meet anybody who wants to starve on the way to the feast in this way but it’s an attractive option for some. More often than not I’m now being told by clients that the ‘old world’ view of three or four decades of hard work followed by a sedentary retirement doesn’t make any sense to them. They feel that they always want to do something productive, either on a paid or voluntary basis. For younger people as well, the world is changing. Someone entering the workplace now is much more likely to have multiple careers, maybe take one or even two career breaks and potentially do some kind of work into later life. A great book on this subject is ‘The 100 Year Life’ by Andrew Scott and Lynda Gratton – it’s well worth a read.

“Someone entering the workplace now is much more likely to have multiple”

We help our clients strike the right balance between what they spend now and what they spend later. Rather than leave it all until retirement, do you want to make memories now and spread out the fun? Alternatively, does the FIRE approach make more sense to you? What does your ideal life look like? The point is that all of this takes some planning. At Claritas we provide an interactive financial planning experience that will really get you thinking about how you’d like the rest of your life to look. We’ll build a financial model to calculate the cost of your desired lifestyle. Together we’ll play around with various scenarios until we find the right one for you. What we then do with your money flows out of this plan. We’ll make sure that you have the right amount of money available at the right time and this informs how your assets should be structured, ie, how much to leave in cash versus how much to be invested – and at what level of risk. Even if you feel like you’ll never finish work, many of our clients want to plan towards a stage where work is optional. It’s a great feeling when they get there!

If any of this resonates with you and you’d like a chat, please do get in touch.