Are you thinking of investing in a new car, house, or in your child’s future education? Just because you’re good at Monopoly doesn’t mean that you’ll automatically reach these goals financially. Having your finances carefully planned is essential when investing in just about anything.
When you were a kid, you’d plan to save up your pocket money during the week so that you could buy a bag of lollies on the weekend. Financial planning is just that; calculating how much you have, to buy something you want. But sometimes things get in the way of these carefully set out plans. Stock market falls, and unexpected life events are always possible in the future. Unforeseeable events that will affect your financial plan. Or are they unforeseeable?
At Financial Mappers, we don’t pretend to be clairvoyants. But we do give you the tools to be able to test your financial plan against several possible future scenarios. These are based on historical data and aim to see if your road map to investment success holds up. Here’s how we do it (and no, it isn’t magic).
Read the article Portfolio Management in Uncertain Times.
Make a financial strategy
Creating a financial plan is easy with the Financial Mappers software. By entering in your financial goals and your existing investments, loans and retirement plans, the software will project the results of your investments forwards. This way you can see what your overall assets will look like in the future. You can even factor in your wage and living expenses to really hone in on the detail.
Test your financial strategy against economic cycles
The ebb and flow of economic cycles are constant. They could change in an instant, or remain stagnant for an extended time. Either way, they’re going to have an effect on your financial plan. If you have your own prediction, you can make your own scenario to test your plan. Throw everything you can think of at your plan, and tweak it as you find weaknesses, so that you can create a strategy that is practically bulletproof.
Test your financial strategy against historical cycles
Time is cyclical. Events that have happened previously will arise again. Natural disasters, share market crashes and significant losses will occur. We don’t mean to sound doom and gloom; we just want you to be prepared. That’s why we have chosen four, 10-year historical, real life cycles from 1986 to 2011, that you can test your financial plan against. Know what kind of challenges and obstacles you’re up against and alter your plan to ensure its survival.
A future free from doubt
Once you’ve tested out your financial strategy against all of these factors, you can rest assured that your family and other assets are safe for the future. You’ve worked hard, and deserve a comfortable retirement. If you put your investments to the test, you could end up with a wealth projection that is through the roof.
So, use logic instead of vague fortune-telling, and invest in the Financial Mappers today, to secure your future.
Glenis Phillips SF FIN – Designer of Financial Mappers
Disclaimer: Financial Mappers does not have an Australian Services License, does not offer financial planning advice, and does not recommend financial products.
