Take a moment to think about what you want out of life.
Do you want to retire to a house in the countryside?
Do you have slightly more grand ambitions, looking to travel the world in your later years?
Or do you just want to help the next generation of your family, preferring to use your wealth to give your children and grandchildren a head start?
The truth is, life is short, and there’s no dress rehearsal. That’s why it’s so important to make as much of it as you possibly can.
This is where we come in.
We help people of all stages and walks of life to plan for their future. We can empower you to make positive decisions about your money. We can find the right strategies for you that help you reach your goals, no matter what they may be.
We call this “planning with purpose”.
Money is the means to an end, not the goal in itself
Many people believe that having more money will make them happier. However, this is only partially true.
Having plenty of money is a great start; it widens the range of choices you have in life, giving you the opportunity to decide how you want to live. It can also offer you security and peace of mind in case things don’t always go to plan.
But, no matter how much you have, your money is still only as useful as the plan you’ve made for how you’re going to use it.
Many financial advisers focus on the pounds and pence. They look at pensions, ISAs and other products and spend meetings talking about asset allocation, returns, and funds.
Of course, these things are important. But it’s not the way we work with clients.
At Velocity, we believe financial planning should start with a list of your goals, not with account numbers and bank statements. We consider your goals the most important part of your planning; your money is just the vehicle for getting there.
Setting goals focuses your mind, allowing you to make decisions that put you on the path to achieving them. It can help you work out what’s important, and help you prioritise what truly matters to you.
This approach is endorsed by a recent report on financial planning by insurer Aegon. It concludes that having a concrete picture of your future self – by making firm plans for what you want to achieve – improves your financial decision-making.
Crucially, your goals need to be personal to you. Social pressures may make you feel as if you should be doing one thing or another. But, in truth, you should choose goals that really reflect what you want out of life, and what you want your legacy to be.
After all, as Steve Jobs once said:
“Your time is limited, so don’t waste it living someone else’s life.”
How much is “enough”?
Of course, while everyone wants to enjoy and get the most out of life, no one wants to find that they don’t have enough money to live the life they really want.
That’s why we encourage you to start with the outcomes. This is the “purpose” in “planning with purpose”.
Once you know what you want to achieve, it’s far easier to start putting measures in place that will ensure you get there.
We’ll ask you to consider how much is really “enough”. You may have a target in your head of how much money you want to have by a certain point. This target could influence how much time you spend at work, and your attitude towards risk when considering ways to boost your wealth.
But, in reality, the amount you need – the “enough” – should be dictated by what you want to achieve, not the other way around.
Setting your goals early helps you to make clearer, focused decisions that strike the balance between having enough money in the future and living your life now.
By planning with purpose, we can help you live the life you want with the money you have.
Your capital is at risk. The value of your investment (and any income from them) can go down as well as up and you may not get back the full amount you invested.