How time-poor legal professionals can benefit from financial planning

You’ve likely worked incredibly hard to reach your position in the legal profession. The sector is known for its long hours, demanding clients, and a constant need to perform under pressure. 

According to Legal Cheek, some junior lawyers still work 12-hour days or longer, with many continuing to work well into the evening. 

When you spend so much time focusing on the needs of your clients, it’s easy for your own priorities to fall by the wayside, especially your finances. 

You might tell yourself there will always be time later to make vital decisions about saving, investing, or retirement planning. But in such a fast-paced and often unpredictable career like law, postponing financial decisions can come at a cost. 

So, it’s important to plan ahead. Even seemingly insignificant proactive steps today could make a considerable difference to your long-term security.

Working with a financial planner who understands the unique needs of the legal profession could allow you to create a clear plan that supports both your present lifestyle and future goals. Continue reading to find out how. 

Legal professionals tend to face unique challenges that make it difficult to plan ahead

Most professions have their own set of challenges, but working in the legal sector comes with a unique range of pressures that can make it difficult to prioritise effective financial planning.

For instance, you might find that you have to manage complex income streams. Self-employed barristers, consultants, and partners often deal with fluctuating earnings, which are tied to:

• The success of cases

• Client payments

• Chambers fees. 

Even if you work for an established firm, any yearly bonuses and incentives from billable hours can create an unpredictable income pattern. 

Meanwhile, you may also be required to deal with complex tax regulations. Since many legal professionals manage several income sources, such as those from retainers and consultancy work, achieving tax efficiency can be incredibly challenging without guidance.

What’s more, many legal professionals might start saving for retirement later than others, often due to the time it takes to qualify or the costs of establishing a practice.

While this is understandable, such a delay can limit your savings considerably. Furthermore, a smaller portion of your wealth will benefit from the long-term effects of compounding, which is essentially “growth on growth” that builds your wealth over time. 

Without a structured retirement plan, you may find it challenging to balance any life goals you have in the present with your long-term financial security. 

And due to the demanding nature of the profession, you might leave yourself little time for your personal life.

Read more: How working with a financial planner could improve your work-life balance

It’s easy to postpone tasks such as reviewing your pensions or investments when they don’t feel urgent. 

Thankfully, financial planning can help you take control of your wealth and alleviate any worries – read on to find out how. 

Financial planning could allow you to make the most of your income

Working with a financial planner might allow you to manage your finances, even when it seems like you don’t have time.

Indeed, your planner would help you make decisions that support your short-term needs while giving you a clear picture of your future goals.

They do so by helping you make the most of your income through: 

• Tax-efficient investments

• Appropriate protection

• Structured savings. 

Professional guidance could give you confidence that your money is working as hard as you do. 

A planner could also help you achieve your dream retirement. 

They can review any existing funds you have and map out your goals for the next phase of your life. Then, they could create a detailed savings and investing plan that supports your desired lifestyle without sacrificing your financial needs in the present.

Ultimately, partnering with a planner could give you the confidence to focus on your career, knowing that your finances are being handled with care.

We specialise in supporting legal professionals at every stage of their career

At Belvedere Wealth, we’ve worked hard to become trusted partners for legal professionals. We have expertise in helping barristers, lawyers, and solicitors focus on their careers by supporting them with: 

• Managing their finances efficiently

• Planning for retirement

• Optimising tax.

Our adviser, Sean Minta, works closely with clients in law, offering tailored advice built around their specific financial circumstances. His valuable insight into the sector allows him to create bespoke plans that bring clarity and confidence to even the most complex situations.

He explains that:

“In my experience working with legal professionals, I’ve seen how easy it is for financial planning to fall to the bottom of the to-do list. 

The demands of the job often leave little time to step back and think about the bigger picture. My goal is to make the process as straightforward and stress-free as possible, helping clients make confident decisions today that support their long-term goals. 

With the right plan in place, they can focus on their careers knowing their finances are working efficiently in the background.”

We aim to build lasting relationships with you that will evolve as your career progresses. This includes the first years of working with a practice all the way through to retirement.

Our personalised 360 approach could help you take control of your financial future with confidence and some much-needed peace of mind.

To find out how we can support you, please fill in our online contact form, email us at enquiries@belvederewm.com, or give us a call at +44 (0)203 633 6603.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate tax planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028).

The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances.

Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.