The Matrix
Lockdown 3.0 has afforded me the time to watch a few must see films. Over the last 3 days, I have embarked on a Matrix marathon.
The Matrix follows the adventures of Neo, a young hacker who discovers that his reality is actually a simulation controlled by a species of sentient machines, and that humanity is embroiled in a desperate war for their freedom. This film is a classic and sits in the top 20 in IMDB’s top rated movies, so do check it out if you haven’t seen it (free on Amazon Prime).
Morpheus, the inspirational leader, repeated the same phrase throughout the film:
“Because some things never change, and some things do”
An obvious statement, but it did make me stop and think about the work we do as financial planners.
What are the things that change? Our age, goals and priorities in life all change over time. This is the bulk of the work we do with our existing clients: managing change and ensure their individual plan remains on track.
But, what do we want to not change? Three immediately spring to mind:
Our health
Our ability to work and earn money
Our lifestyle
Our health and ability to earn money underpins all that we do. We tend to take it for granted.
You could have the perfectly crafted financial plan, investment portfolio and strategy to reach your objectives, but if along the way life throws you a curve ball (which it tends to do from time to time) and you fall ill or are unable to work, this can all be thrown off track. This is why we recommend, where it is appropriate, putting suitable insurance in place in the form of life, critical illness and income protection cover. Of course, we don’t like paying the premiums and we hope it’s a big waste of money, but ultimately, our plans are built on sand without it.
What about lifestyle?
I sometimes speak to clients that are not exactly sure what they want. But they know what they don’t want:- they don’t want less than what they have now. So this is the starting point and the first primary financial objective for most: maintaining what you’ve got.
This involves understanding the cost of your lifestyle and what needs to be done in order to maintain it. This may involve additional saving for example for your future.
Some out there already have enough. They either simply don’t know it yet, or lack the confidence to give up. This is what financial planning is all about: providing clarity over what is possible for you and your future.
I like to think Neo, on his quest for reality, would have worked with a financial planner. Perhaps he would have chosen the blue pill, avoided the hassle of the sentient machines and remained in the matrix indefinitely
He would have had a great life, but I doubt it would have made a great film.