Despite media speculation around the doomsday-like financial impact of COVID-19, NZFP and our clients have remained calm and steadfast.
While the lockdown has meant working from home on his 50-acre farm in Wellington and contacting clients online, Callum Forbes has continued with the same approach to financial planning that has withstood the test of market volatility for decades.
“We educate our clients on market volatility and situations like this one, so we haven’t had panicked calls from clients who are concerned about their financial plan because of COVID-19. Many of our clients have been with us for decades, so they’ve experienced the benefit of our advice through several situations similar to this.”
- Callum Forbes
Financial Adviser, NZFP
For advisers like Callum, approaching financial planning with a focus on financial security means that clients have peace of mind that the advice they receive is future-proof and built to withstand any changes – fluctuations in the market, or changes to personal circumstances that might impact financial wellbeing...
While those feeling insecure at the moment might turn to reactive financial advice in the media, clients of NZFP benefit from financial plans that are backed by traditional, proven expertise.
“The advice we give at NZFP has been tried and tested – it’s applicable to my generation, generations before me, and clients of mine who are in their twenties.”
Put simply, because NZFP prioritises long-term financial security regardless of the state of the market, strategies don’t need to be reactive when the economy takes a slight downturn. Instead, times like this are showcasing the value of future-proof financial planning for clients seeking long-term financial security.
While this doesn’t mean clients are completely immune to negative market changes, it means they are equipped and empowered with a plan, a sensible strategy and an adviser by their side. With the ability to ride through unexpected changes more confidently and securely, our clients are always in a better position than those who are reactive and ‘taking a punt’.
When it comes to popular investment strategies, more aggressive investors or those who are new to the stock market have been tempted to ‘have a go’ by using popular investment apps such as Sharesies. This can be exciting as the market is on the way up, and a few may even be bold enough to ‘buy the dip’ on the way down, but when people are looking for an investment strategy that can provide long-term financial security, the tortoise always wins the race.
“If you invest aggressively to chase high returns, you’re bound to bail when the market goes south – and we’ve all dabbled in that, perhaps when we’re younger. But for our clients who are looking to use their portfolio to sustain their lifestyle or retire early, we provide them with a future-proof strategy that can withstand any ‘blips’.”
When media outlets present worst-case scenarios and grim predictions of the future, it can be hard to appreciate the opportunities that situations like this can bring. Perhaps those who feel more secure with their finances are better able to embrace the new world that is taking shape.
Callum reminds us that positive change
and innovation
comes from the most challenging scenarios, and this lockdown could offer a meaningful shift in perspective for those spending more time at home with their loved ones.
“The media can present dystopian images at the moment, just like they did with the GFC. It’s important to be vigilant, but also think of the innovative and more sustainable technologies and business practices that are being created. There could be a better world emerging out of this.”
At NZFP, we’re dedicated to ensuring that our clients feel safe despite the current shifts in the market and in our lifestyles. We’re proving that our processes work, just like they have in the past and will continue to work in the future.
