‘It’s raining and I’m bored!’25 February 2020
This statement would be inconceivable if I were sat at my desk. There are always financial planning tasks to undertake each day, which are to some extent reactive, and then there are planning tasks which are proactive. All strands to the rich tapestry that a financial planner enjoys, and which keeps the Chapters Financial team focussed on our clients' needs.
The opening statement is written whilst I am on holiday. Don't get me wrong, it's a great holiday destination, but I like writing, it's been raining all day and, well, you know the rest. One of the results is this blog, which I hope you enjoy.
Boredom in itself can be a positive thing in motivating you to achieve something with your spare time. Sometimes it can be a negative thing in leading down a path to fill the time that you later regret. And what if you had loads of time, such as in retirement? One common client question we ask is simple: 'What would you like to do in retirement?'. Some advisers have the propensity to get tied up in the facts and figures, rules and regulations of all things retirement planning, but forget to ask what's it all about.
Indeed, in our experience, some clients and enquirers have not thought through what they want to do when they have extra time spare, perhaps with some tax-free cash in their pocket, and a regular pension income agreed. The client reactions to the question have been extreme, from the opening of a Pandora's Box of dreams to be fulfilled, to tears of sadness because the work they loved was coming to an end as they had reached a contracted age (obviously no longer usually allowed).
As we have noted before, based on recent actuarial tables (averages), a man will live to around 87, and a female to age 90 (current average ages at death). If you retire at 65, you're likely to have 22+ years ahead of you to enjoy! Quite daunting really if you compare it to your time in education, or your employment in your favourite job. 25% of your life (average) ahead of you, it just needs you to enjoy it!
As part of our financial planning process, we will always want to know the hard facts and figures about your financial position. This allows us to understand where you have been and where you are up to. However, it usually provides no insight into what you want to achieve in the future, which some may fairly argue is the most important aspect of any financial planning. So, when that rainy day arrives and you have little to do, perhaps make a note or two of what you want to achieve in the future. You might argue that boredom, on the rainy day or otherwise, is optional!
No individual advice is provided during the course of this blog.
Keith Churchouse FPFS
CFP Chartered FCSI
Chartered Financial Planner
Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899