It is tempting to consider financial advice as “a moment in time” exercise, something we engage with when we come into some money, hit retirement or require a mortgage.
Those pivotal points during our lives, when we have to make a big financial decision.
Yes, those are important moments and the decisions can be tricky and will benefit from expert help.
But the true value of advice is often beyond the precise moment, it is in the years after that the outcome is determined. Which is why ongoing, regular reviews are crucial.
Reviews could be seen as a check list, but they are more than that, they are a fresh opportunity to take stock and to test the previous decisions taken to see how they are progressing in real time.
Most financial advice is based on forecasting the future in some way, and planning to cope with unknown scenarios, things like ill health, divorce, uncertain economic and investment conditions, inflation and interest rates.
Reviews are intended to reflect this moving situation; to take what was originally decided and advised, and to see how it stacks up against the now known, latest position.
This factors in both the micro and the macro.
The micro meaning the individual situation, i.e. what is happening in “your world”, the macro what has changed or is happening in the “wider world”.
Just take all the news so far this year, rapidly rising impact from AI, a world becoming more dangerous as wars seem to be starting in various locations, having potentially dramatic effects on economies and prices. A jobs market in turmoil, a drum beat of potentially even higher taxes, and prices still escalating for households.
It seems like the macro side is becoming momentous in various ways; all of which plays into the idea of vigilance, which in this arena means regular reviews.
Most of the time, staying steady with the course set tends to make most sense; but it is not a golden rule with no exceptions. There will be times when the course needs to be adjusted, possibly even reset altogether. In many cases, proactively so, and getting in front of something rather than reacting and being behind it, which can be damaging to wealth.
Our approach to reviews is that they are, indeed, part of the fabric of the advice service, a crucial part.
You can contact one of our independent advisers for personalised advice and support in making confident, informed decisions by using our Facebook or Contact Us pages, or speaking to a colleague in our office on 01329 282882.
Please note: The content of this blog is for your general information purposes only and does not constitute as financial advice.
The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
