In life, some things outside your control can go wrong, even though you may have the best laid financial plans in place. One of our senior advisers, Jodi Escudier, discusses this in more detail and the relevance in the changing world we live in.
The world is always changing and this has an impact on our lives. Closer to home the impact increases whether it is interest rates, cost of housing, rising living costs and our employment security. Most of the clients I meet have lived privileged lives here in Australia and have always been able to provide for themselves and family – but the question I always ask is “Have you factored in any stress testing in your financial life?”
So what is stress testing?
At Boutique, and within our “5 Pillars Journey”, we undertake financial modelling to plan out a client’s financial life. This modelling includes strategies to help keep them on track, to help achieve what is important to them and includes various visual options to work through. What is important to us in this collaborative modelling session is to build in “stress testing”.
We will question:
- What if interest rates go up dramatically
- What happens if one family members income drops 30%?
- What if the timing of that business sale does not go to plan?
- What if there are other unforeseen speed humps?
How will your family get through these hurdles if something does not go to plan?
The saying of being “forewarned is forewarned” is an integral part of the work we do each year with our clients within the 5 Pillars. We want to make sure our clients are in the best possible position to be able to adjust and navigate change and to make Confident Life Decisions about their wealth – we have found life is not just a straight line!
To have an obligation free 45 minute catch up to talk through how stress testing can work for your financial plans and for your family, contact us an advice@boutiqueadvisers.com.au.