Accumulation is the period of time in which you have the opportunity to set in place your long term financial foundations.

This phase of the financial journey is typically defined by one’s ability to balance periods of high expenditure, commonly coming in the form of property upsizes, supporting a growing family, school fee expenses and lifestyle costs, with periods of significant earnings from an accelerating professional career or growing business.

With rising earnings comes the opportunity to save and invest for the future from disposable income, whilst also presenting the challenge of large rises in taxation levels.

Wealth Planning Considerations in the Accumulation Phase

Starting as early as possible and increasing contributions in line with income rises to tax efficient savings & investments in a well-structured manner will help to maximise the effects compound interest over the long term.

Regular monthly contributions to investments will also benefit from pound cost averaging, which is the ability to average the price at which investments are made into the market, thereby reducing the risk of investing a lump sum at an inopportune time.

Investing with a long term time frame during the accumulation phase means one can benefit from a higher level of flexibility regarding investment risk, providing the opportunity to offset short term market volatility over a long term time frame.

Considering various tax allowances being utilised before being lost as earnings increase is essential, with the compound benefit of tax relief over the long term being highly substantial.

Whilst building wealth, the right underlying protection plan is essential in ensuring family and wealth are protected from any ongoing liabilities and mortgages.

Are you in the Accumulation phase?

• You have a young or maturing family.
• You’re a driven professional or business owner, with a strong annual income.
• You have significant disposable income on a monthly or annual basis.
• You are a higher or additional rate tax payer and have lost a number of your tax allowances.
• You have significant mortgage liabilities against your personal and/or business capital assets.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. 

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.