Blog
The Gap
The Gap The Gap So what is “The Gap?” The gap is the difference between the life that we currently have and the life that we aspire to have.Many aspire
January 13, 2023
Your Stocks and Shares ISA And Pension Will Not Give You Cash Flow (....sort of)
Your Stocks and Shares ISA And Pension Will Not Give You Cash Flow (....sort of)
Where cash flow is defined as monthly income….
Investing will not increase your cash flow…
…or at least not in the way that many people think it does.
Which makes that notion a load of turkey really. 
One of the most common questions I see when it comes to investing is “How can I invest in my ISA/Pension for passive income?“
By passive income – most are referring to continuous income that appears in our bank account month on month.
The ideal is that this outcome will occur as soon as possible.
When we invest into ISA/Pensions usually we only seek to derive cash flow from these after many decades .
The long term time horizons of these accounts mean they will not be able to provide that cash flow in the near term (for most)
Pensions can only be accessed when we reach retirement age (!)
So they wont give us any cash flow until then…
Which for most people would rule these accounts out when it comes to instant cashflow.
This is why, we should always at least question the wisdom of the gaggle 
on this one…
on this one…
On the other hand, you can withdraw from a Stocks and Shares ISAs at any time.
But if you’re using a buy and hold long term strategy (which 95% of people are).
The most practical thing to do to is to not touch (sell) these investments for many decades.
Mainly because it inhibits the ability of your investments to compound… meaning we are jeopardizing our retirement plans.
(There’s actually a host of other reasons why this is generally not a good idea too – Ill save these for another post)
So if you really want more income….
Which could mean you have the finest of birds 
on the Christmas dinner table 
this year…
on the Christmas dinner table this year…
Then either boosting your income from your clinical dentistry or investing within assets that give you cashflow (such as property or perhaps a business) are more likely to achieve this.
Of course, there are some exceptions to what I have said above.
And I HIGHLY recommend reading into this further/getting some advice if you feel uncertain.
However this certainly provides some direction…
…and maybe some food () for thought.
) for thought.*Not Financial Advice
Disclaimer: All content on this channel is for education purposes only and does not constitute an investment recommendation or individual financial advice. For that, you should speak to a regulated, independent professional. The value of investments and the income from them can go down as well as up, so you may get back less than you invest. The views expressed on this channel may no longer be current. The information provided is not a personal recommendation for any particular investment. Tax treatment depends on individual circumstances and all tax rules may change in the future. If you are unsure about the suitability of an investment, you should speak to a regulated, independent professional.
Have you got your NHS Pension checklist yet?
Enter your details above to receive a link you can use to download your FREE checklist
Read More Blogs
Blog
A Game of Monopoly
A Game of Monopoly A Game of Monopoly I recently heard this analogy about investing which I thought was really cool…Analogies are pretty powerful because they compare something we currently
December 22, 2022
Blog
The Cost Of Doing Nothing
The Cost Of Doing Nothing The Cost Of Doing Nothing It’s a common and important query.Let’s compare: (!)Imagine if there was an investment that…. Is tax free Cannot be taken
August 11, 2023
Blog
What Factors Do We Need To Consider When Investing?
What Factors Do We Need To Consider When Investing? What Factors Do We Need To Consider When Investing? Fundamentally we can actually distil the forces that govern our success in
November 17, 2022
Blog
So What Is Inflation?
So What Is Inflation? So What Is Inflation? Inflation in a nutshell is a measurement for the rate at which everyday real-world prices increase over time. Its specifically a measurement
December 8, 2022
Blog
Most Of Us Are On A Journey We Didn’t Sign Up For…
Most Of Us Are On A Journey We Didn’t Sign Up For… Most Of Us Are On A Journey We Didn’t Sign Up For… We think it will lead us
August 4, 2023
Blog
Should I Max Out My Personal Pension As Soon As Possible?
Should I Max Out My Personal Pension As Soon As Possible? Should I Max Out My Pension As Soon As Possible? This is certainly the hand me down wisdom that
August 21, 2024