How much consideration do you give to your financial independence? Do you even know what it may look like for you and your family? All too often, it is easy for people spend their day-to-day lives in extremely busy working roles. As a result, the focus is on the “here and now” – not what comes next. But it is important to step back on occasion and think about your goals.
At Saunderson House, our holistic financial planning will help you to better understand what it could mean for you. We support individuals in their quest to reach financial independence. Using our expertise and knowledge, we can build a detailed strategy that works for you. No matter the questions or goals that you have, let us help to put financial independence firmly within your reach.
What is financial independence?
The answer to this question is a subjective one – because financial independence often means different things to different people. One person’s aims and ambitions will vary from the next’s, and all are entirely valid. But the one common requirement to achieving that independence is to have enough income or wealth to fulfil your goals – without the to continue working.
To achieve financial independence, investing and go hand in hand with financial planning to help you work towards the life you want to lead. It is about striking the right balance between what you need today against what will give you the ideal tomorrow. But it can also be the ability to focus on a job that is your passion – rather than one you need to do simply to pay the bills.
That is where our expert advisers can add value – working with you to create the path that takes you where you want to .
What is the ‘Financial Independence Retire Early’ movement ?
One reason for seeking financial independence is the chance to stop working sooner – certainly earlier than the state retirement age. Financial Independence Retire Early (FIRE) is a movement first promoted in a book called ‘Your Money or Your Life’, which was released in the US in 1992.
In recent years, FIRE has started to grow its appeal outside of the US. The concept involves frugal living and making significant savings (as much as 70% of annual incomes). With the aim of early retirement, it is proving particularly popular with younger professionals.
But this type of extreme behaviour is not the only pathway to financial independence and early retirement. And what our team can do is make sure that you find the one that works best for you.
What does it mean to be financially independent?
By building financial independence, you are providing you and your family with freedom. What that freedom looks like is up to you. Ultimately, however, it is the freedom to do whatever you want with your time. It means the ability to sustain the lifestyle that you choose without needing to go to work. Instead, existing wealth and passive income can cover your ongoing expenses.
That said , working in a high-paid position does not constitute wealth or financial independence. It is a strategic process with which our expert advisers are here to help you. It brings together a combination of the savings that you amass and the long-term investments that you make. It can include pension planning, too – all with the aim of delivering you that sustainable financial freedom.
How we can help with your financial independence goals
As stated at the beginning, taking a step back can be so valuable when it comes to weighing up your end goal(s). We can bring purpose to your earnings and savings – and help you to better understand how to manage them with those end goals in mind. With our holistic approach, your Saunderson House adviser can help you to answer questions such as:
- What is financial independence?
- What will it mean for me?
- What happens on the journey?
- How long will it take?
- How much should I save?
- Can I change or expand my financial goals?
- What risks should I take?
- Do career milestones affect my goals?
Ultimately, we can ensure that you understand when you could reach financial independence. We do this by examining how much you want to spend now and later – in retirement, for example.
You may also need to plan for certain complexities. It is one of the benefits of our personal service to you – and could include things like funding long-term care, helping children to buy their first property, or any inflationary changes that could impact the value of your wealth.
Our expert advisers will work with you to produce a detailed cash-flow plan. This plan is based upon both your immediate and longer-term expenditure and saving goals. As part of this, your adviser will look at different scenarios to clarify future uncertainty .
Detailed research from our in-house investment team and Chartered Financial Planners is then applied to review several scenarios. From this, we can help you to create a suitable portfolio; one that is shaped entirely by your financial and life objectives.
Who can we help to achieve financial independence?
Our financial independence service is aimed at anyone who wishes to put in place a proper plan of action for their future. In particular, individuals who find it hard to consider what comes next due to busy work schedules can find our service invaluable, so what we do is provide you with the insight and information that you need to take an informed decision.
Many of our clients work in some of the most time-intensive professions – jobs that demand an incredible level of focus and dedication. Doctors, lawyers, accountants, barristers and business owners are examples of individuals that we can move towards financial independence and early retirement – be that in London, the South East and nationwide.
At what age can someone seek financial independence?
Like many other aspects of financial planning, there is no age requirement for seeking financial independence. If it is something that matters to you, our expert advisers will be able to look at the best way forward for you. Our advice is based on your own unique circumstances.
You may still be relatively young and considering early retirement. Or and wish to sustain your current lifestyle? When you come to us, the first thing that we do is consider your goals – and how best we think that they can be reached.
Why choose Saunderson House?
We appreciate and understand the aspirations of our clients, so we offer a dedicated financial independence service to reflect and recognise this. It is just one strand of our holistic financial planning and investment management service – and one that is rooted in your best interests.
- Our client-adviser relationships are built on the foundations of personal service and making sure that we align with your needs.
- Advice and recommendations that we provide are all motivated by your core goals.
- Our in-house investment team and Chartered Financial Planners are highly skilled – and ensure that you make the most informed decisions.
- We help clients to achieve financial independence UK-wide. Our regional offices give us a true nationwide outlook.
Our awards underline our commitment to excellence in everything that we do. For more information or for an introductory consultation, contact us today and find out what we can do for you.
Financial independence FAQs
Is financial independence possible?
Yes – it is entirely possible. For those seeking financial independence, the main consideration is what it looks like. Is it the ability to step back from working sooner? Or is it the freedom to give your family the financial support they might need? By defining your goals, you can chart out the most appropriate path forward. That is something with which we are here to assist.
It can still be worth talking to one of our expert advisers even if you are unsure if you can reach financial independence. Get in touch with us if you would like to explore the possibilities.
Is financial independence worth it?
It is entirely up to you when it comes to the question of whether building financial independence is worth it. Your wealth and your finances are personal matters. How you decide to manage and use them is your decision – but becoming financially independent can bring with it many benefits for you and your family. As such, you should consider your goals to know if it is worth it.
How much do I need to be financially independent?
According to the FIRE movement, an individual must establish a net worth that is 25 times their estimated annual spending to attain financial independence. But it is rarely as binary as that. In the first instance, it fails to consider the mitigating circumstances and external factors that may affect you. And, above all, the amount that you need will be influenced by the end goal.
By choosing Saunderson House, you will get absolute visibility over how much you require to be financially independent. We will provide advice and strategies on how best to reach that goal. In addition, we have done a great deal of work over a number of decades on safe withdrawal rates in later life. It is based on stochastic modelling, which can help us deliver appropriate guidance.
The key point is that what is right for someone else may not be right for.
What is a passive source of income?
Earning a passive income can often be an integral part of building financial independence in the UK. As its name suggests, it is an income that is generated and maintained ‘passively’ – i.e., by nominal effort or intervention. It can work in combination with other wealth-management tactics such as non-pension investing to provide you with an ongoing income and financial freedom.
Some potential sources of passive income that may be applicable to you include:
- Stock, bond or trust dividends
- Interest on savings
- Pensions and retirement products
- Property investments
Your Saunderson House adviser will consider all existing or potential sources of passive income as part of our service to help you to reach financial independence.
What if my financial circumstances change?
Nothing in life is certain. At a moment’s notice, your circumstances could change – for the better or for the worse, the latter of which can of course be a threat as you seek financial independence. However, this is something with which our advisers can support you.
To start, we will examine various scenarios based on your unique personal situation. This allows us to see what potential changes may arise. For those changes that we can’t foresee, meanwhile, we can draw on our expertise and knowledge to adapt your financial independence plan.
Looking for further information about our financial independence service? Or would you like to arrange a complimentary, obligation-free telephone conversation or meeting to discuss your requirements? Either way, please contact us.
What our clients say
|“Appointing Saunderson House to administer my finances was one of the best things I did on my sabbatical. They have a truly holistic view, taking account of all of our assets in helping us plan for the future. They are also highly proactive, taking care of the administrative burden and communicating and reporting to us clearly. While I would recommend them for their service alone, our portfolio’s returns have also been consistently ahead the sector average.”