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Dear Reader
Welcome to September's newsletter!
Many of you will have returned from Summer travels. Wherever you were, I hope you created great memories.
I have been busy on some business initiatives, more on that to follow. And of course, as it is already September, I am busy planning the remainder of the Year. Where has it gone?!
In this newsletter we explore why, during planning conversations, we always look ahead. There is a sequence to planning conversations that clients get most out of. First, the importance of focusing on what is most important to you. Then we look at planning matters and only then do we assess investments.
The rest of this month’s newsletter is packed with ideas and links that you may find interesting. As always, we’re here if you'd like to discuss how any of these ideas might apply to your unique situation.
Feel free to share - I have capacity to take on some more family clients, if you know anyone who might benefit from this content please do share, it would be really helpful and much appreciated.
Regular numbers update
Markets - unimportant and important numbers!
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Inflation - the real enemy
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Why we always like to look ahead
From our work with clients, families often tell us they are surprised by how the style of our planning meeting leads them to really open up about all manner of things.
They are also surprised by the range of topics we discuss in our planning meetings.
This style and the range of topics are deliberate. Without a strong listening approach and life-centred financial planning philosophy, a planning meeting can easily shrink to one thing: reviewing how your investments have performed since we last met.
When that happens, the portfolio can gradually drift from your goals and circumstances, reducing your chance of financial success, and decisions start to be driven by short-term returns rather than the life you are planning for.
Investing your hard-earned money into the right investment portfolio is very important, but it must always remain in service of YOUR priorities and overall financial life plan.
We will always review your investment returns with you, but it is only one part of a much wider conversation. The rest of that conversation is a chance to revisit what is important to you, step back and think about your whole financial life: what has changed since we last met, what you are working towards, and what to do next.
What We Ask
The clearest way to explain how we approach our work is to walk through a few areas we will always come back to.
1. What is important to you?
We will listen whilst you think through what is most important to you and what your latest thoughts are. Without interruption. This is the only way we can be sure not to assume anything. Some clients even find themselves discovering key points as they go through this exercise.
2. Have your goals changed?
Once you settle on what is most important to you, we can re-evaluate your goals. A lot can happen in a year. A new child, a business sold, a family death, a decision to move back to the UK, a retirement brought forward. If your previous plan is not updated to align with your current goals and circumstances, you will lose confidence that it will lead you to success.
3. Are you on track?
Whether your plans have changed or not, you need to understand your current trajectory. If the path you are on does not lead to success, something needs to change. If you are on track, you get peace of mind. If you are not, we would rather know now, while there is still time to adjust.
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4. Are there any major gaps that need to be addressed?
Some clients are on track to achieve their goals, but only if nothing goes wrong. Are you ignoring a risk you can plan for? Surprises happen, and not just to other people. Be realistic about the risk measures you may need to put in place.
5. What should you do now?
No matter what we’ve uncovered in the planning meeting, there are usually one or two actions that will improve your future. However, we might agree that the plan is sound and the right thing to do is very little. Knowing when to act and when to leave things alone is an underrated skill.
Why We Ask
Financial planning is, in the end, a forward-looking activity. For this reason, most of the questions we ask are about the future and what we can do to improve yours.
Judging a plan well, then, has very little to do with the past. What matters is where you stand today, and where you can still go from here.
You don't need to arrive at every meeting with all the answers - in fact, it is great to come with an open mind and a willingness to think things through together. By guiding you through these questions, we can improve your chances of financial success.
Our planning meetings are built around these questions, and we look forward to keeping your plan on track at your next meeting.
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Every situation is different. If you'd like to discuss your own financial plan, please reach out.
Compliance disclaimers: what they should really say.....
The value of investments and any income from them can fall as well as rise. You may not get back the full amount invested, you may get more. Past performance should be used as a guide only and is not a guarantee of future performance.
Reading, videos, podcasts
Watch
Why money can't buy happiness [7 minutes] It's true money can’t buy happiness, but do you know why? Dan Sachau studies life satisfaction and discusses the link between money and happiness.
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Listen
Eight New Questions [2 minutes]. A different set of questions for thinking about money. Instead of asking, “What’s your net worth?” Carl offers a series of reflections that focus on flow, relationships, balance, and the patterns shaping our financial lives. It’s a gentle reminder that the most important questions about money are rarely answered by a single number.
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Great visuals
Thank you
As always, I hope you enjoy this month's updates, do let me know what you enjoyed and any ideas you might have for future newsletters.
Meanwhile, here if you need.
With best wishes, Gary
Gary Smithson - Partner, Farringdon Asset Management Singapore and Malaysia
garysmithsonwealth.kit.com
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