Don’t Build Your Financial Plan on Sand

Sandcastles look great for a little while, but as soon as the sun comes out, or the tide comes in they disappear!

A financial plan not built on solid foundations can do the same, except the implications can be far greater.

When building a financial plan, the aim is to create something that is robust and can deal with the unexpected. It should have solid foundations and not falter or crumble when life’s challenges arise.

When planning for your future retirement, it's natural to focus on how you want to spend your time and enjoy the financial independence you’ve worked hard to achieve.

However, it’s equally important to consider what might happen if things don’t go as planned.

The unexpected can take many forms: the loss of a partner, a prolonged illness or accident that prevents you from working, or the need to care for a family member. These are just a few possibilities, but they represent real-life scenarios that many of us will face.

While it's impossible to prepare for every eventuality, part of our work involves stress testing your plan against likely “what if” scenarios. By doing so, we can identify any shortfalls and discuss steps to address them. This may involve additional insurance or setting up a cash reserve to act as a financial cushion.

Each plan is unique, but by preparing for the unexpected you’re free to focus on living your life, both now and in the future, with the confidence that should the worst happen, you and your loved ones will be supported.

This article is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.