Can we use some of our savings and investments now?

Often, we find that financial planning and financial advisors get a terrible reputation.

Not because people don’t want to plan for the future, or indeed because financial planners and advisors aren’t great people to work with.

But because often people can’t see the real value behind financial planning.

Financial planning for many can be seen as planning for “a rainy day.” However, what constitutes a rainy day, and what happens if your rainy day comes sooner than expected?

This was precisely the situation that one of our clients recently found themselves in.

Background

A client that has been with Marshall Pension and Financial Planning Ltd for many years came to us initially to help get their finances in order, ensuring both themselves and their family would be financially protected now and in the future.

With an eclectic mix of savings, investments, assets, and pension plans, it was our role to help wade through the paperwork and disjointed wealth and streamline these investments into workable strategies to suit their lifestyle and future aspirations.

This is where we get to know our clients.

Working together over the years we changed their investment plans, we helped to streamline pensions and build up healthy savings, but most importantly, we grew to understand our clients as people.

We learnt what their dreams for the future are. What they want most out of life. What they want to save for, and more.

Ultimately, we got to know them as individuals.

Having this relationship with your financial advisor is key.

Open and honest.

They could tell us any financial piece of information, and if circumstances changed or anything cropped up, we were there to advise them and point them in the right direction.

One of these ‘situations’ arose when their daughter moved abroad.

The Problem

Firstly, the problem was most certainly not their daughter moving abroad!

Both parents loved to visit their daughter and her family, taking some much deserved time out together to enjoy their family and take in new sights and adventures.

However, things changed when one of the party became ill. Unfortunately, due to illness, this meant that they could no longer fly due to some insurers not able to provide insurance and others being astronomically high!

They both talked to Marshall Financial Planning about how they would, unfortunately, miss their trip to see their family and how much they loved travelling but understood this was no longer an option, and they had to consider money and finances and what they may need for the future.

The Solution

Looking at their financial planning and reviewing their situation, there was another possibility.

The couple could use the money within their investments and savings without it having a detrimental effect on their future finances and have their daughter and her family fly over to see and spend some time with everyone.

They used some of their rainy day money.

In this situation, they had options.

With robust and sound financial planning, it wasn’t a case of waiting until something happened, it was about using what they had now in a financially responsible way.

It was our responsibility to help alleviate any fears of running out of money or not being ready for any unforeseen circumstances and instead provide them with a scenario where they could enjoy their life and time with family now.

This is the premise of financial planning.

Financial planning is all about planning for the future; however, good financial planning is about planning for the life you want to live.

It is about helping you to spend wisely and, in this instance, not putting off seeing family until it is too late.

Financial advisors are here to take the emotion out of decision making and to look at things objectively. Mapping out several scenarios to provide you with a clear and detailed picture. Helping you to understand the realities of your choices now and how big decisions can and will affect you financially if you’re not prepared.

It’s not always planning for where you want to be, but rather about planning for life.

Unfortunately, our client’s husband passed away; however, for his wife, they got to spend quality time with their family without feeling regret that they missed out, and this is something that can never be taken away from them.

Enjoying yourself while you have your health is vital.

Evaluating your investment portfolio and constructing a strategy based around you and your circumstances is key.