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Dentists Who Invest

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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 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…⁣
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 .⁣

 

 

#NOT FINANCIAL ADVICE

 

 

 

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