There’s more to life and money than handbags and shoes.

Question from a client: “I’ve had this Inheritance and I’m wondering whether to use it to pay off my mortgage or whether to invest it”

Such a sensible question. It shows she understands her options and wants to work out which one is best for her. Top marks to her.

But what did the bank manger say “Oh no, I don’t suggest you pay off your mortgage because then you’d have extra money each month from not making a monthly mortgage repayment. You may just spend that extra money on shoes and handbags”

This is exactly the story that was related to me by my client. For anonymity let’s call her Sandra.

No wonder Sandra came looking for me.

I’m sure the bank manager thought it was a witty comment, maybe designed to allow Sandra to see his personality and what fun it would be to work with him. But in fact, she didn’t know him, had never met him before. And therefore, that style of humour wasn’t appropriate in these circumstances. Sandra felt she was being patronised and her question not taken seriously. Yes, I totally agree with her. The man needs a slap!

At our initial meeting Sandra and I discussed what was important for her: her goals, objectives, values and what she’d really love to do with her life. Travelling was her main aim. Not necessarily anything particularly luxurious but she had a number of places she wanted to visit and planned to spend 6 months or more at a time travelling.

She wanted to start this as soon as possible to ensure she was able to do this during her earlier and fitter years of retirement.

Ideally, she didn’t want to work until 65 when her main final salary pension kicked in and wanted to leave work several years earlier than this. Her NHS pension allowed her to buy additional pension income.

The financial plan showed she could stop work at 62, rely on her investments until her main pension started at age 65 and then her state pension at age 67. Her investments would continue to fund the balance between her income and her planned spending for the remainder of her retirement.

Sandra has now advised her NHS manager she will be leaving in April next year and is busy planning what her traveling adventure will be. Brexit has caused a slight issue since she probably can’t spend the time she would like in each country, and Covid obviously impacts. But she’s working around that, since she knows how important travelling is for her.

The financial, plan has shown her she can retire 3 years earlier than planned and spend time doing exactly what she’s always wanted to do but hasn’t had the opportunity to do up to now, due to fear as to whether she had sufficient funds.

Speaking to a financial planner is so much more than a recommendation as to what to invest it. It’s discussing what lifestyle you want, what’s important to you, and what can be done with your money to provide that.

This year more than ever when we have seen how things can change dramatically without warning, and how sadly a number of people aren’t getting to the point where they can lead their ideal life.

As we’re heading towards the year end and a new year ahead, ask yourself “What do I really want to achieve and what am I waiting for?”

Your money is there to support the lifestyle your truly want. If you have a dream work with a financial, planner to ensure that dream can happen.

And not a shoe or handbag in sight!

Quote from Sandra:

”My retirement plans are now on track & I’m no longer anxious about the future”

If you would like to have a confidential no obligation discussion, please contact me on [email protected] or 020 7117 2628. We can then arrange a mutually convenient time to talk.