Having a financial plan in uncertain times

Periods of turbulence are an inherent part of life, but it doesn't have to dictate your financial future. By working with your adviser to create and maintain a comprehensive financial plan, you can navigate through uncertain times with confidence and clarity. One of the key elements to successful financial planning is not just reacting to changes but preparing for them in advance. With the right plan in place, it’s more likely that you will achieve your goals and enjoy the peace of mind that comes with this knowledge.

A financial plan is more than just a roadmap for your money, it's a blueprint for your life. Your plan should provide a sense of control and direction, helping you navigate through volatile times with confidence. When I work with clients on creating their initial plan, we take into account the possibility of stock market crashes, stress testing their finances as far as possible. This means that even in the face of economic uncertainty, such as what we are experiencing at the time of writing with President Donald Trump’s introduction of tariffs, you can be reassured that you will have enough money to fund your life plan as we have already allowed for this.

Market volatility is inevitable. However, the derailment of your financial plans as a result is not. Markets go up and down all the time and with investing there is always the risk of losing money. The recent chaos caused by political events and economic shifts has highlighted the importance of staying the course. While market values may drop, the fundamental principles of financial planning remain unchanged. It's crucial to remember that financial planning is not just about reacting to market changes. Instead, it’s about you and your life, now and in the future.

Even in the face of economic and political uncertainty, your core priorities and values will always remain steadfast. It's essential to reflect on what truly matters to you and ensure that your financial plan aligns with these priorities and not the other way around. Whether it's spending time with family, pursuing hobbies or contributing to causes you care about, these aspects of your life should be at the forefront of your plan.

It’s easy to become fixated on fluctuations in your portfolio's value yet it's crucial to remember that the ultimate purpose of your financial plan is to support your life goals. Ask yourself: 

• What do you want to achieve in life?
• Who are the people that matter most to you?
• What legacy do you want to leave behind?
• When do you want to realise your goals?

These questions can help you stay grounded and focused on the bigger picture of keeping your plan organised to achieve your objectives effectively.

When you prioritise, you can make decisions that enhance your overall well-being. This approach not only provides financial security but also ensures that you are living a fulfilling and meaningful life.

Involving your family in discussions with your financial planner is extremely important, as this helps to make sure that your financial plan reflects your shared values and aspirations.

Understanding your future self and having a clear vision of your goals can significantly impact your financial decisions. Regular conversations with your financial planner can help you stay focused on your long-term objectives, even when faced with short-term uncertainties. This proactive approach prepares you for many different scenarios and can help you maintain a positive outlook on both your financial and life plan.

Cashflow modelling is a powerful tool in financial planning and your adviser may well have already used it with you. It provides a visual representation of your financial future, helping you understand the potential outcomes of your decisions. By seeing your financial plan come to life, you can make more informed choices and stay on track to achieve your goals. This visualisation can be particularly reassuring in uncertain times, as it provides a clear picture of your financial health and will show where we have already stress tested your portfolio so you can see how it holds up under extreme pressure.

The value of ongoing professional financial advice cannot be overstated. A financial planner can provide the expertise and guidance needed to navigate complex financial landscapes. They can help you identify opportunities, avoid mistakes, and make informed decisions that align with your goals. By working with a financial planner, you can ensure that your plan is robust and adaptable to changing circumstances.

Long-term benefits

Higher pension wealth

Investment in higher-return assets

If you want to discuss any aspect of your financial plan, please do not hesitate to get in touch with your usual Evelyn Partners contact.

¹International Longevity Centre UK, What it’s worth – Revisiting the value of financial advice, 2019

²FT Adviser, Why the value of advice extends far beyond financial benefits, December 2024