I spent most of my teens and twenties sailing and am qualified as a Yachtmaster, not that I’ve done much sailing in recent years!
However, I like to use the analogy of sailing across the Atlantic when it comes to reviewing your portfolio.
Let’s say you’re on a sailing boat heading from Gran Canaria to St Lucia. You plot your route and head out on your compass bearing. Several things need to be taken into consideration like the direction and strength of tides (which are determined by the moons gravitational pull) and the direction and strength of the wind.
It’s no good just setting off on day one and following the same heading. Under the 1 in 60 rule, being just 1 degree out in your route will put you a nautical mile (nm) away from where you want to be after 60 nm. The crossing is 2,800 nm, so with that 1-degree error, you’ll end up 46 miles away from St Lucia in St Vincent. Therefore, you need to constantly update your position and adjust your route. In olden times, sailors used a sextant to plot their location using the stars. Nowadays they have GPS to keep them on track.
Back to sailing, once you’re in visual contact with St Lucia, you know that you’ll be coming up against rocks, land spits and sand bars and there will be buoys to let you know the safe route into port. Again, once you’re in sight of your retirement or other goals, there will be choices to make, like lowering your risk to conserve capital rather than make money and your Financial Adviser will guide you safely around to get you to the optimum situation.
We are a firm of Independent Financial Advisers (IFA’s). This means that the financial advice we offer is unbiased. Your financial adviser will look at all the options available to you from the whole of the market. So, why not contact us today to see how we can help you. We always recommend that you take Annual Reviews. The initial “getting to know you” meeting is at our expense and is without obligation. Our experience covers all aspects of financial planning, including pensions, estate planning, mortgages and investments.
Additionally, our financial planners live and arrange meetings in-
Also, we can make full use of video conferencing facilities such as-
Additionally, we can also arrange a conference telephone call. There is no need to visit an office as all work can be handled remotely if you prefer. The choice is yours.
If you have any thoughts on this article, “The Importance of Financial Annual Reviews”, then we would love to hear from you.