Financial Planning in a Post-pandemic world

‘Fail to plan, plan to fail.’ This is an expression that anybody who has worked in management or the military must have heard a thousand times. Like all clichés, it carries a kernel of truth. Furthermore, in no aspect of human life is the phrase more apt than in financial planning.

To achieve your financial objectives, financial planning is crucial.

This can be a financial plan for:

Retirement

Saving

Long-term investment

Buying your home

Sceptics may ask ‘What’s the point of financial planning? What’s the point of any planning? We have just lived through the most turbulent, changeable year in any of our lifetimes.’

At first glance, it’s a valid point. On March 23rd last year the UK many countries around the world went into lockdown. Further lockdowns followed.

Tens of thousands of people lost their jobs. Businesses which had taken years to build were wiped out overnight. Stock markets around the world experienced tumultuous times. 

But 13 months later a vaccine programme is being rapidly rolled out. The economy is rebounding. Many of the world’s leading stock markets actually gained ground in 2020. All the world’s leading markets made gains in the first quarter of this year. The only exception is China as that fell by 1%.

Financial Planning is more important than ever

Pandemic or no pandemic, house sales continue, we still have to save for our retirement and the Government is still going to tax us on our savings, investments and our final estate. Especially with a hefty bill for Covid to pay.

Having a financial adviser is crucial

What is interesting is that the fundamentals of financial planning have been completely unaffected by the pandemic. If the last 13 months have taught us anything, it is that what we previously thought couldn’t happen can happen. Also, in many cases it can happen very quickly. Therefore, we need a plan, we need savings and we need a buffer.

It has also reminded us that saving and investing is a long term commitment. Also that there will always be short term fluctuations. More than anything, we have been reminded how important regular contact between a financial adviser and a client is. Plenty of our clients have needed reassurance over the last 13 months: plenty have had questions that needed answering. We have been happy to do both.

Going forward

There will undoubtedly be changes in the future. This could be what Harold Macmillan famously called ‘events’ or clients drawing on the last year to re-evaluate what they want from life and their financial planning.

We will always make sure that your financial planning is flexible enough to cope and to adapt.

But make no mistake: the old adage ‘Fail to plan, plan to fail’ still rings true.