I AM COMING UP TO RETIREMENT, I NOW NEED TO SPEND MY MONEY WHY IS IT SO DIFFICULT?
Individuals spend their whole life saving and investing for their future, squirrelling money away, deferring gratification in the hope they will have something for later and then the moment comes. It’s the last day of work the doors close behind them, they wave goodbye to friends and colleagues and are faced with the prospect of no more income, no more guarantees.
It is time to enjoy the fruits of their labours, it is time to start spending!
In our experience this is far harder than it seems, and very difficult to adjust to. If you think about it this is not a surprise, we condition ourselves for years to save, to cut back, to invest more and more and NOT spend our money and then one day, the very next day after work ends, we have to change our mentality and start to live off and spend our hard earned funds. To do this we need to rewire our brains against years of contrary behaviours and do this overnight.
Unless you are extremely fortunate, even after you have come to terms with both withdrawing income from your assets and enjoying your funds, something else will come into play, something you didn’t see coming, something that knocks you sideways. It may be an unexpected expense or an aggressive market decline.
Throw into the mix the emotional ups and downs we all feel when we are investing it is difficult to react rationally. Once again your resolve will be tested, and you may need to revisit your plans and see if changes need to be made.
It is therefore vitally important you plan and structure your wealth appropriately to meet your lifestyle goals. This will in turn will give you greater confidence in your future and allow you to cope no matter what the world throws at you.
This article does not constitute advice. Anyone considering any form of financial planning should seek independent financial advice. Octagon Consultancy Limited is authorised and regulated by the Financial Conduct Authority (FCA). You should note that the FCA does not regulate tax advice. Past performance is not indicative of future results. The value of your investment may go down as well as up