We seek certainty but so much of life is uncertain.
No doctor can tell you how long you have to live.
No economist can tell you whether we will be richer or poorer from one year to the next.
No teacher can tell you how your career will pan out.
No religious leader can ensure your salvation.
No parent can tell you that you will be safe no matter what.
And no financial adviser can tell you whether your pension fund will rise or fall a day, week, month, or year from now.
All these sages can impart their wisdom and experience but they can’t make guarantees. Their value is presenting you with the facts and giving you options to make your own informed decision.
As a financial planner I can help you forecast what your financial future may look like but when dealing with decades there has to be an allowance for assumptions that may not stand the test of time; what will long-term inflation be? what is a fair and reasonable expected return from a portfolio? what will your lifestyle costs be when you are in your 80s?
Accepting uncertainty is a prerequisite for daily living. If it weren’t we wouldn’t get out of bed in the morning.
As Epictetus wrote:
There is only one way to happiness and that is to cease worrying about things which are beyond the power of our will.
That is not to say that there is no point in planning for the future. The Prussian Military Strategist Helmuth von Moltke the Elder is quoted as saying “no plan survives the first contact with the enemy” but an army that goes into battle without a plan isn’t going to be an army for long.
Planning your financial future helps you make informed decisions with your money now so that you can achieve your lifetime priorities and live your ideal future.
As your circumstances change your plan changes. If inflation stays high make sure your money is working hard enough to grow above inflation; if mortgage rates increase decide whether to use savings to reduce it down; if taxation changes make sure you are taking appropriate actions to legally minimise the tax you pay.
Life is uncertain. Accept it but don’t allow it to stop you from planning your future.
Photo by Hadija Saidi on Unsplash
