It’s January, and financial professionals and reporters across the land are writing their predictions for 2023. Of course, it’s all rubbish as no one knows the future on account that it is the future! But I’ll have a go.
Here are my prognostications, why I think them and what you should do with this knowledge. As always, there is good news and bad news… which do you want first? The bad news? OK, here goes…
The depressing predictions
Some of you will get ill
Every year a small number of our clients get diagnosed with something horrible, like cancer. This is horrific and we will be there for you. But, let’s get things in shape before it happens.
Why? Because our bodies are frail and we spend much of our time beating them up with bad food, inertia and booze.
What you should do: Exercise, eat well and drink less.
When I was ill in 2018/2019 I spent ten months worrying about whether I had cancer and 6 months barely being able to stay awake as I was so anaemic. In the end I went to a private hospital but they didn’t want me at first as I didn’t have insurance. I can bring a wheelbarrow of used tenners if you like, I exclaimed! It was so much harder getting treatment. The NHS do a great job and I have highly socialist tendencies, but you are all wealthy people so…
Get private medical insurance: we can help if you like. If you are ill and don’t have PMI – pay for it, just get it done. Get better asap and get on with your life.
Some of you will die
Sadly, a client or two of ours will die each year. It’s pretty horrible stuff for us. Over time we grow to love you!
Why? Because our bodies are frail and we spend much of our time beating them up with bad food, inertia and booze.
What you should do: Exercise, eat well and drink less. Time is short people, get out there and enjoy yourself whilst you have time.
How we can support you: come to our events, on our social walks. Bring a friend and make new ones. Your ashes will be scattered in a field, or in a jar on a mantelpiece. Or you will be in a box in the ground. Wherever you end up , it’ll be bloody hard to make friends!
Your time is your precious and finite resource. Use your money to enjoy that time whilst you can. If you’re worried about whether you have enough, speak to us to allay those fears or see some alternatives.
Some of your family and friends will die
Some of you will have family and friends that die – your world will close in around you and become a darker, lonelier and less exciting place. The inevitable sadness of a longer life.
Why? Because our bodies are frail…
What you should do: See them, play with them, laugh with them, cry with them.
How we can support you: Let’s face it, we can’t really. But we can try. In that dark time, we can take the administrative pain away by putting you in touch with lawyers etc to handle it for you. We work with a counsellor – Jess – who can help you with grief (she seems to give me a lot of grief around the office anyway!) to help you process it all.
“Memento Mori”
Did you know I have an A-Level in Latin? That’s why I drop these little pearls in every now and then. ‘What use will Latin do you when you’ve got a job Steve?’ Well, in your face naysayers, I may have had to set up my own company and can only use it in Newsletters, but it’s useful now!
It means: Remember you will die.
This is somewhat of a downer if you take it at face value, but remember, our bodies are frail. Adding a positive spin, this can help us deal with the small things that get us down but are not important. We are getting nearer to death every day, so let’s enjoy life whilst we can. You know what you can spend, so go and do exciting things with your time and money (if you don’t know what you can spend without running out, come back for a top-up of knowledge!).
OK Steve, that’s enough doom and gloom, didn’t you say there was good news too?…
The uplifting predictions
Stock markets rise
OK, I’m not sure on this one, no-one can be, but I reckon they will. Why? Because in 75% of years they rise and we have just had one that has fallen, so more likely than normal they will rise.
Company owners and CEOs of great companies aren’t resting on their laurels and thinking, “Woe is me! We can’t cope with this. We will never make money again”. No. Instead, they are thinking, “Right, how are we going to make money now?”. Everyone thinks like this. We don’t curl up in a ball and think it’s all over. We think, this is happening but it’s my life I haven’t got much time and I’m going to make the most of it.
All of the above is what drives company profits and that is what drives long-term stock market returns. On a personal and emotional level, we try to make things better for those we love. This is the true power behind company returns – love. The love of people working to make things better for their families. That has not stopped and will never do so, I reckon.
What you should do: holding cash on the side in a high inflationary environment is guaranteeing you will lose money. This is massively dangerous. Investing in the great companies of the world (the only consistently inflation-beating asset) is the answer to this.
How we can support you: We can show you tonnes of stats, apply those statistics to your personal situation, tell you stories that resonate, draw you pictures, tell you what to read… whatever you need to improve your knowledge to take away the self-sabotaging excuses that are preventing you from making the best decisions with your money. Come to us with an open mind and a positive attitude and we can make things better in the long run.
Some of you will have new family members
Why? Well, it’s cold and there is a cost of living crisis so people tend to do activities that bring them closer to people, comfort and are free. Erm, know what I mean?
Births of children or grandchildren will bring new joy (no doubt some worry too!).
What you should do: Use your money to set them up for a bright future. If you have more money than you need, then it is better to give it to them whilst they are alive. This brings you feelings of well-being, you can see the affect it has on their life and if they are going to get it when you snuff it (see earlier predictions) anyway, then they may as well have it now if no effect on you.
How we can support you: We can show you what amount of spare money you have that you will NEVER need even in the worst-case scenario. We can then arrange ways of gifting it to people you love in a way that is most beneficial to them and also meets your needs.
Some of you will retire
Whoop! These years should be the best years of your life. You have money, time and your health. You can do almost whatever you want to do.
Why? Many people drift into retirement. We get tired of sacrificing the small things to work more, and realise that the small things are actually the most important things. But we still drift and wait for a certain age told to us… e.g., 60 or 65. However, I know there will be retirements, as it’s my mission to move people there as soon as they can, to enjoy life and their hard-earned money.
What you should do: Come see us, we can help take the ‘financial reasons’ excuses away or tell you what you need to do to get there as soon as possible.
Think of what you could be doing instead. When I was a young man, work got in the way of my social activities. Was it the same for you? Then, as you aged, you got institutionalised and as you did less, socially and with other pastimes, you forgot yourself and what you enjoyed. Work filled that gap and now it is preventing those enjoyable experiences getting back in! This is the real challenge of retirement, do you recognise it?
How we can support you: How we move people to retirement:
Proving they have enough money, then
Posing the question ‘why not now?’
Helping move their mind to a retirement mentality – what are you going to do with this time?
Providing counselling for those that are struggling with the idea. Is it what you really want?
Putting people in touch with similar people… e.g., on our walking clubs.
Some of you will start a business
You may have spotted a gap in the market or have an idea you think will work, or a hobby you want to earn a living from (these are the best ones!).
Why? I know this because us humans are restless creatures. We are always looking to see what’s beyond the horizon.
What you should do: Work day and night to perfect your idea and ways you can launch into the market.
How we can support you: Work out how much money you need to support you whilst you get the business off the ground until that supports you instead. Hopefully, it will go terrifically from the start, but for most, there is a period of 2-3 years before the business can support you fully.
We can put you in touch with financiers and other professionals required to get things started… so you can concentrate on earning the money.
The Year Ahead
Whatever the future holds, let’s make it a good one. We may have 50 years, 50 months or 50 weeks left. Maybe 50 days? Let’s start now so that whatever time we have left is as enjoyable and meaningful for us as possible. Once we have fulfilled those needs, we can then help others have as enjoyable and meaningful lives as possible too. Wouldn’t that be nice?
Thanks for all your support in 2022 and we hope to repay that even more in 2023.
Please note that Steve does not have a real crystal ball. This article does not constitute financial advice – we recommend you to speak to a qualified financial adviser about your individual situation.
We hope you found this article interesting and useful.
If there are any specific topics you’d like us to cover in an upcoming issue, please let us know by emailing support@lucentfinancialplanning.co.uk and we’ll see what we can do!