With the volatility experienced this year we have had many conversations with clients around the subject of risk and unfortunately downside risk due to some of the drawbacks in both risk and ‘deemed’ safer assets.

Market volatility is almost impossible to avoid if above cash returns are sought for investors and investing shouldn’t be a short-term game. It is during times like this that the financial planning side of the business really steps up.

I spend a lot of time with my clients really understanding their objectives and what they want to achieve in life. This includes work and personal goals and doesn’t just include their finances. Risk in my view is them not achieving those goals and objectives.

If slowing down at age 60 or taking a world cruise is high on the priority list in the future, then these are what we are working towards and not making this happen is the risk element of planning. To manage this, we build visual financial plans and use cash flow planning with clients, this is at the initial stage and ongoing to ensure they are still on track to meet these and to highlight as early as possible where the risk of not meeting the objective is met.

This week we met with a corporate client who have been building up significant wealth in both commercial property and investment markets. Before the meeting we were a little apprehensive as the portfolio had fallen and it is never a nice message to give, despite them having access to our app and knowing the numbers.

What transpired was that despite the volatility and low point for some assets the directors were still on track to achieve their objectives of exiting the business in their late 50’s and having a comfortable and sustainable level of income without having to rely on continued work.

By the end of the meeting the clients were really pleased and for perhaps the first time really understood and appreciated the benefit of looking forward and working towards objectives not getting stuck in the small details of what is going on right now.

Meetings like this make this job one of the best in the world and why we love doing what we do.

Thanks for reading.