It’s proof, if any were needed, that a lot can happen in 10 days.
For Financial Planners trying to predict where the investment markets will be in 10 years, or even 10 days, is a far from enviable job. It’s not one I would relish.
Yet I got to thinking about some of the patterns that apply to events and long term investing and Financial Planning.
We know there will be an election before Christmas and one party or parties will emerge in charge, we know that the two main parties remain (as far as we know this week) committed to some form of Brexit and we know that Woodford investors will find other places for their money or be happy to allow firms like Schroders to take over their investment management.
So while there is seemingly short term chaos, and we can never rule out ‘black swan’ events, longer term the familiar pattern of political and economic events will continue and these can be planned for or at least taken into consideration.
To me planning long term is what planners do best and it’s a strategy almost unique to Financial Planners. There are endless excuses at the present time to bury your head in the sand but this is also the perfect time for clients to plan ahead, as planners know.
I mention this because an excellent Planner Casebook in the next issue of Financial Planning Today magazine will cover the very sticky topic of divorce. I know some planners help a lot of divorcing couples and some even specialise in this area. Splitting assets, particularly pensions, requires very careful handling and a very long term approach.
In the case featured in the next issue divorce for one women leads to a wholesale review of her finances and the implementation of some much-needed protection cover for her and her family. I won’t give away too much but given a twist in the tale later on protection cover proves invaluable and a life-saver in many ways.
One of the most valuable aspects of any financial plan, and often overlooked, is protection cover and this case highlights why any plan without adequate protection cover is far from complete. It also underlines the long term nature of planning.
I’d recommend you look out for the casebook in the next issue and it’s worth noting you can now view over three years of Planner Casebook’s by subscribing to one of our new Digital or Digital + Print packages. These will give you 12 months of magazine access, a 3 Year Magazine Library and unlimited website access.
Click on Subscribe above for more and make sure you are signed up for our daily newsletters to receive special subscription offers. Reading the professional tips and knowledge sharing in our magazine is an excellent way to pick up on some good, long term, best practice idea from leading Financial Planning professionals.
The best financial plans are nearly always those built on solid foundations for the long and this theme runs through every issue.
Kevin O’Donnell is editor of Financial Planning Today and a financial journalist with 30 years experience. This topical comment on the Financial Planning news appears most weeks.