Financial advice: adapting to change – Alistair Bean


Firstly, we at Alistair Bean & Associates – Financial Advisers want to send our best wishes to all, hoping that you and your families are fit and well.

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By Alistair Bean & Associates Managing Director Alistair Bean

Among other things, financial change has hit most of us like we have never known before and this causes concern for past, present and future planning.

But this is exactly what we must do. We must continue to plan; however it doesn’t need to be difficult.

Sticking to your own rules is extremely important but adapting those rules to situations as they occur is vital to success.

Re-visiting the reasons for your short, medium and longer-term goals are imperative however, it doesn’t need to be cumbersome.

Your short-term goals should include immediate plans for spending like upgrading cars, home maintenance and perhaps family weddings.

Overseas trips may now be deferred for some time and maybe you have received a hotel refund and an airfare credit, so include these figures in calculations.

We say that you should have a three-month backstop of emergency savings for expenses; my recommendation is that you now make this at least a 12-month back-stop.

For medium and longer-term, look at the reasons why you originally selected your investments.

For example, was it because you were going to get a good rate of interest and this has now reduced, or you bought some shares only because you were to receive a dividend, but that dividend is no longer there or reduced significantly.

Perhaps you purchased another investment in an industry that may now not see recovery for a number of years, whether it be property, tourism or entertainment.

For these decisions maybe it’s time to consider investments in sectors that now look more in need.

Discuss these short, medium and longer-term plans with us.

We can individualise what is best suited to your own situation; it may be that you continue as you are, or we can recommend adapted changes as appropriate to your own needs.

Interestingly what gives me some comfort lately is an article I read recently, in the current Covid environment; 96-year-old Charlie Munger, (investment guru, Warren Buffett’s offsider) said, “there is no need to rush when making investment decisions to buy, hold or sell”.

I thought, when a 96-year-old says there’s no need to rush, then you should probably listen.

He went on to say that moving investments at the right price is the right thing to do.

This isn’t about market timing; it’s more about what makes sense as opposed to ‘common’ sense.

We at Alistair Bean & Associates – Financial Advisers understand the market highs and lows, and we can help guide you through these unprecedented times.

Our specialty is “to make decisions for you, so you don’t have to”.

My team and I look forward to assisting you to help review your past, present and future ongoing needs. Please feel free to contact us today to assist you in adapting to change.


 

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