January 12, 2024

Preparing for the worst? Get planning for the best too!

So there goes January. A month of promises, predictions and ambitious New Year’s resolutions.

It’s often a month of extremes. Either boundless optimism, “Let’s make this my best year yet,” or shrouded in black clouds, focusing on bad weather, the long wait until pay-day and all the difficult things that are going on in the world around us!

Building in resilience

Considering the last few years, it’s all too easy to take a negative view of what’s coming next. Covid, conflict in Ukraine (and now the Middle East), stubbornly high inflation here in the UK and recession warnings. These are just a few of the many twists and turns influencing how investors think. The current outlook for Britain’s economy is admittedly improving, but we’re not out of the woods yet.

BUT….even when things look uncertain in the short-term, it doesn’t necessarily result in a BIG shift in your wider financial picture.

Just look at the markets over the last couple of decades. Since 2000, the FTSE 100 has gone through a number of significant events that have made investors jittery, a bursting dotcom bubble, the global financial crisis, Brexit and the pandemic. Through it all, the market has recovered – rewarding those who looked beyond the short-term “noise” that inevitably surrounded each event.

However, digging-in while other investors are getting nervous requires resilience.

Financial planning helps build this resilience, so that during the tough times, you’re able to keep the heid.

How can we help you build resilience?

In future articles, we’re going to be looking in more detail at those unexpected events that could impact your financial plans, such as divorce, long-term illness or even dealing with an inheritance.

Every life event (good or bad) requires a period of adjustment.  But good financial advice can ease you though each transition.

So, what do we do at Sutherland Independent to help you plan and build in this resilience?

By working together to create your own, bespoke Financial Plan, we can simulate the likely financial impact of different potential life events before they happen.

This process will do one of two things.

It will either re-affirm your existing capacity to withstand the impacts, or highlight what actions are required in order to ensure you are well future-proofed.

But – It’s vital not to just focus on the negatives!

You need to plan for fun too – your BEST-case scenarios!

True, life does throw up obstacles that might mean having to change course. But financial planning isn’t just about resilience. It’s also about ambition.

The goal setting, thinking about your future, that’s the fun part.

Think about your best-case scenario.

Is it retiring abroad? Do you want to be surrounded by family, taking long holidays, or maybe swapping the office for charity work or volunteering?

Whatever goals and aspirations you have in mind – and we encourage you to think big – we explore the best way for you to achieve them.

In a way, we’re upending the maxim “Hope for the best, prepare for the worst.”

For us, you need to plan for both. Prepare for the worst, plan for the best.

Next month we will start a small series on navigating some of the major life events which might threaten to be overwhelming and tell you how we can help you build in that necessary resilience and that all important ambition.

As part of our series, we will cover the psychology of retirement and how we can give you the confidence to make the most of it.

Join us as we remind you of the support, we are ready to provide!

January 12, 2024