Thinking long-term

5th July 2019

Financial planning isn’t a one-time exercise any more than a big workout gets you fit, or one salad sorts out your waistline. It’s something that stays with you through life. It takes discipline to stick to your plan, but good financial planners are by your side whenever you need them. Over the years our lives change and so do our finances.

We use the ‘bucket analogy’ to illustrate how the same life can look quite different over the years.

First, we throw all your assets into the bucket – bank accounts, savings accounts, investments. Then we look at the things that empty the bucket, money for food, mortgages or rent. Money flows back in through salaries, dividends, inheritance and later, pension income, and so it continues. It’s always the same bucket, but over the years the level changes and what it’s filled with changes too. We need to find a balanced approach that supports your lifestyle both now, and in the future, allowing you to live the life you enjoy.