Building wealth for life’s ‘unknowns’
Over the years, we’ve built hundreds of financial plans for our clients. These plans include all the knowns and some “known unknowns” with provision for essential and non-essential items, an allocation for potential medical and care expenses, as well as aspirational bucket-list expenses. However, as we know, life is full of uncertainty which makes it difficult to plan for the “unknown unknowns”.
Having seen people’s lives unfold and personally witnessed their investment journeys, we know that curtailing people’s investment returns because they are projected to get over the financial finish line is short-sighted.
Saving and investing beyond your expected needs
Unknown financial shocks often hit people out of the blue. We don’t know what financial shocks our clients (and their families or friends) may face in the future, so we believe that creating additional wealth can only give you more freedom and opportunity.
One of the biggest ‘unknowns’ we’ve seen is parents supporting adult children in divorce; this ‘trend’ is not going anywhere. Another example is unexpected health issues that require more money than the plan predicted.
While traditional financial plans aim to meet specific goals, it’s crucial to save and invest beyond our immediate and expected needs. This extra wealth can serve as a safety net when unforeseen circumstances arise, providing security and confidence in the face of the unknown. If this extra wealth is not needed during your lifetime, more wealth will be available to benefit your family or worthy causes.
The stock market is the perfect vehicle for insuring against life’s “unknown unknowns”. By putting money into large investment funds, clients own shares in some of the Great Companies of the World. These shares are the driving force of wealth creation, making the stock market a powerful and lucrative force that can protect you financially from life’s “unknowns”.
Guessing at the unknowns
As investors, we must consider the potential challenges our clients may face down the road. Life rarely unfolds in the way we imagine, and building a margin of safety into our financial planning is one way of countering the fragility of our plans.
As experienced advisers, we can assist you in this process by discussing scenarios that we’ve seen other clients encounter, helping you develop a more realistic understanding of your financial future. We’ve seen how this awareness can motivate clients to prioritise wealth creation and make proactive choices to prepare in advance, knowing that they have a trusted guide to navigate these challenges with them.
Our financial plans extend beyond mere wealth accumulation; they encompass cultivating financial preparedness for the unknown, ensuring you are equipped to weather life’s unpredictable storms. An essential element is admitting our inability to predict what is to come.
The “unknown unknowns” may never be fully accounted for. Still, by taking a proactive and adaptable approach, you can be empowered to face whatever challenges come your way, instilling a sense of control and empowerment in your financial journey.
We’re here to help you plan for life’s unknowns
Our specialist financial planners are here to help you plan for your future, so you’re prepared no matter what life may throw your way. If you have any questions, please get in touch with our friendly team, and we’ll be happy to speak with you.
