“Someone’s sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffet.

Warren Buffet describes the advantages of living in the present, protected from the uncertainties of past choices. However, uncertainty is an inherent aspect of life and as we grow older we must learn to be flexible and accept it the certainty of uncertainty (trying not to confuse myself here). An essential part of this becomes recognising the significance of long-term planning and being proactive around active decision making. The longer you wait, the worse off you are down the line.

I want to focus on the importance of having a comprehensive financial plan to ensure a clear mapped out path from present to retirement. Our chances of overcoming uncertainties greatly improve the more value and effort we place on planning ahead and making contributions that have a long-term positive impact.  As financial planners, we frequently hear from prospects about their disorientation with financial planning and their dread of the unknown as life throws them into situations for which they have not anticipated appropriately.

Questions such as: “How can I protect my savings against unstable economic conditions?” and “My income is reliable right now, but what if I lose my job in the later years?”, may be ones that have crossed your minds over the years. These questions and anxieties are always fixated on future events, however their solutions are rooted in decisions you make today to prepare for the uncertainty that the future brings.

Comprehensive financial planning today involves much more than merely keeping an emergency fund. A solid financial foundation, reducing opportunities for debt accumulation, pragmatic investment strategies and the accomplishment of your financial objectives are all made possible by effective financial planning.

Let’s now release some of the pressure and outline 4 steps you can take to future-proof your finances:

1. Embracing Adaptation: Instead of relying solely on historical data and static models, established financial methods should be updated to suit the rapidly changing realities of today (who would have thought a pandemic would last two years?).

2. Being flexible and accommodating: While it’s not expected of you to be involved in every market development, you should have room in your plan to make real-time adjustments in response to emerging trends and situations. Communicating your expectations with your financial adviser and asking critical questions like “Does my cash flow statement put me in a strong position to improve tomorrow through financial discipline today?” and “Does my net worth statement reflect the latest financial trends / knowledge?” are crucial.

3. Maximising opportunities: It’s important to remember that uncertainty can also be a sign of fresh opportunities. You can maximise your financial potential and increase your wealth by identifying possibilities with the assistance of a qualified financial adviser. As a professional, they possess the knowledge and experience to assist you in managing your assets, choosing wise investments, and maximising your tax benefits so you can get the most out of your hard-earned cash.

4. Prioritise: Financial planning is a complex process that involves a wide variety of issues and consideration of several aspects. Setting priorities is crucial because the sheer amount of information and potential opportunities and/or dangers available can be daunting. By concentrating on fewer activities, you can simplify your financial planning and increase your chances of success.

We believe that creating a financial plan can be significantly easier and more efficient with a trusted professional. With industry knowledge, experience, and impartiality, financial planners are seasoned to navigate the complexities of personal finance, crafting strategies that align with unique needs and objectives.

To speak with a professional financial planner who specialises in helping people future-proof and plan for their future, follow this link and schedule a call no-obligation call with myself, Adrian Johnson, or my colleague and Partner at PWP, Adam Walkom, free of charge: Appointment booking – Permanent Wealth Partners