Page 29 - Waterfall City Issue 2 February 2024

of taking on the required patience with threats of recession this is a
to learn from Warren Buffett’s first real possibility for many. Engaging
investing mistake described here. with your financial planner regularly
is critical to ensure that you are still
Revisit your retirement plan focused on your plan and addressing
as needs and goals change the appropriate goals for the
Life does not happen in a linear situation you find yourself in.
fashion, and circumstances change,
which affects even the best-laid Speak to an adviser
plans. Making sure your financial A professional financial adviser will
plan is robust and resilient enough guide you in identifying gaps in your
to achieve your goals while investment plans and formulating
incorporating enough flexibility strategies on how to address them.
to cater for unplanned events, like They are also there to coach and
emergency expenses, is key. For guide you through the journey of
instance, most couples don’t plan achieving the benefits of a well-
on divorcing, yet many marriages developed and executed financial
do, unfortunately, end in divorce. plan. The best time to have started
Similarly, most people don’t expect was yesterday, and the second-best
to get retrenched, but in markets time is today. Carpe diem!

frames required for various asset
classes, make sure that your financial
plans take appropriate advantage of
each asset class’s characteristics, and
have a strategy in place to manage
your emotions as markets do what
they frequently do in the short term –
behave irrationally.

Start with the end in mind
The best way to apply sufficient
patience is to start with your end
objectives in mind. Establish your
goals and the time frames over which
you intend for these goals to play
out. A good financial plan will include
addressing a series of cash flows
required at critical points, either as
lump sums or regular withdrawals
for each of these goals. Each of these
terminal cash requirements becomes
the time frame that allows investors
to plan the appropriate exposure to
growth assets and have the luxury

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