As we enter a new financial year, Wealthwide shares how dentists can get their finances in order and work towards their dream lives.
Financial planning can be incredibly stressful. If you’ve been burnt by an experience with a previous financial adviser, or don’t have experience in building a plan, it can be tough to know where to start.
From maximising your tax reliefs to building investment strategies and organising your will, there are so many things to consider.
As we approach a new financial year, now is the time to reflect on your finances and plan – not just for the near future, but for the rest of your life.
In this article, we take a look at four ways with which dentists can keep their priorities right and their finances in check.
1. Make the most of government allowances
One useful way to make your financial planning less of a struggle is to make sure that you’re up to speed on the latest government allowances.
These include:
- ISAs
- Pensions
- VCTs (venture capital trusts)
- Capital gains tax
- Inheritance tax.
You can read more about each of these allowances here.
2. A positive yet practical mindset
Financial planning should be seen as a positive thing – a way of progressing towards the life you desire.
However, a naïve level of optimism and the belief that ‘everything will work out’ can land you in financial trouble.
There’s no need to be pessimistic, but a degree of care is important when developing a financial plan.
Here are some examples of how you can be positive yet practical when planning…
Make conservative assumptions
Tempering your expectations gives you a buffer, allowing your plan to work out even if future returns are lower than past ones.
Identify and assess potential risks
Accept the idea of unlikely yet high-impact risks. Life and disability insurance, for example, is often considered unnecessary, but you should prepare for all scenarios.
Create a safety net
Be willing to allocate part of your capital to a safe yet conservative cash investment. This weathers inevitable market declines.
3. Keep ‘creating the life you want’ in mind
Financial planning can be a minefield. But focusing on what you want to achieve through sound financial planning makes the experience more positive. It’s important to put your own needs and desires at the forefront of your financial planning.
Whatever your priority, from taking extra holidays to spending more time with family or simply having those moments to sit down and read or watch TV, you must factor in your mental health when planning your finances.
Read more about how efficient financial planning can positively impact your mental health here.
4. Find a financial planner you can trust
At Wealthwide, we specialise in helping dentists and orthodontists throughout the UK, providing a platform for them to discuss, plan and manage their finances.
We’re experts in our fields, which include: financial planning, wealth management, NHS pensions, practice finance, mortgages and insurance.
As an independent business, we’re able to give unrestricted advice, selecting products and services from across the market as a whole – helping you manage your finances and grow your practice. We tailor our services, offering bespoke advice to meet your specific needs.
If you’d like to learn more ways to manage your money effectively, or you want some more ideas, contact Wealthwide via our website or at [email protected] – or arrange a call with a specialist financial planner today.
