The importance of forward thinking..
…because you never know what lies ahead
These are things which most people take time to consider carefully before they go ahead. What people don’t often consider is where the money they may use is going to come from.
An example today I saw a client who is moving and later in the year will be building an extension and replacing the kitchen. They have sufficient capital, currently invested in stocks and shares ISA, to carry out the work and they were intending on encashing once the work had started knowing the capital would be available within a week. What they had not considered until we discussed it was how they would feel if they made that phone call to me only to find that the market had fallen and the account was not worth what they expected.
With volatility in investment markets and so many unknown factors the opportunity cost of missing out in a rising market is often outweighed by knowing what level of capital is available.