FINANCIAL PLANNING, LIKE SPACE EXPLORATION, NEEDS CAREFUL MANAGEMENT AFTER SUCCESS

Space exploration is pushing boundaries. Yet, like financial planning, the period after reaching a goal requires just as much attention as those that garner coverage.

On 23 August 2023, India celebrated its third lunar exploration mission as Chandrayaan-3’s Vikram Lander successfully reached the south pole of the moon. It’s the first time the feat has ever been accomplished.

THE PERIOD AFTER REACHING A MILESTONE CAN BE JUST AS CHALLENGING

Successfully launching a spacecraft is one thing, but bringing it safely back to Earth is another challenge. Spacecraft re-entry is di cult for numerous reasons. While exciting launches grab attention, just as much work goes into preparing for the period after the milestone event.

Similarly, while you may celebrate reaching a financial goal, your decisions after could be just as important.

When you’re working towards something, you’ll often have a clear plan to achieve it. For financial goals, it could be contributing a certain amount each month to your pension or investment portfolio.

Once you reach your goal, a plan is still important, but you may need a very di erent strategy and approach. Take retirement as an example. You may have saved diligently during your career to retire with enough assets to be financially comfortable and enjoy the next chapter of your life. While you have the assets to live the retirement you want, without a plan, your goals could still go awry.

Retirees may face two challenges that financial planning could help.

1. Managing assets to ensure they last for the rest of your life: As you’ll often be responsible for creating an income from your pension, as well as deciding how to use other assets, you might need to consider how to manage withdrawals to ensure you don’t spend too much too soon. You may also need to weigh up other areas that could a ect your wealth, such as investment returns, inflation, or tax liability.

2. Changing your mindset: It’s not just your financial strategy that might need to change when you retire, but your attitude to money too. After decades of putting money carefully to one side, it can be di cult to start depleting some of the assets you’ve built up. You might even be afraid to spend some of the money – what would happen if you faced a financial shock? Or could you run out during your lifetime?

We Could Help You Create A Plan That Goes Beyond Goals

Your aspirations are an incredibly important part of a financial plan, but so is the period that comes after them.

Working with a financial planner could help you create a plan that incorporates goals and goes beyond these milestones to build long-term security. Please contact us on 01273 774855 or email shoreham@pembrokefs.co.uk if you would like more information and quote reference PFSIS

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