You rarely make just one decision at a time, even when it feels that way. Say yes to one thing with your money, and you’re quietly saying no to something else, whether you’ve noticed it or not.
In an earlier episode of the Purposeful Wealth Podcast, Jonathan spoke with Jacqueline “Jackie” Lockie, a highly respected figure who has helped shape the financial planning profession in the UK over several decades, about why that’s worth paying attention to, and what it means for you.
The time capsule
Jackie shared a simple way to test any decision you’re weighing up: picture stepping forward to a specific point in your future, your retirement, say, and looking around. Do you like what you see?
“You get them in your time capsule… do they like what they see? If the answer is yes, great, nothing to do. If not, you make a list, take them back to today, and discuss what you can do.”
— Jackie Lockie
If the answer is yes, there’s nothing more to do. If it’s not quite, that’s useful information for today, not a problem to leave for future you to sort out alone.
Nothing sits in isolation
Whatever you choose to do with your money, you’re also choosing not to do something else with it. Topping up a pension instead of overpaying the mortgage this year, or the other way round, isn’t really one decision. It’s two, and one of them is happening quietly, without you necessarily noticing.
“There is always, always, at least two strategies… and commonly, there is always a third.”
— Jackie Lockie
The habit worth having isn’t finding the perfect answer. It’s remembering to ask what else a decision might be affecting before you make it.
A trade off worth recognising in your own plan
One story from the conversation stuck with us, and it’s worth holding up against your own situation. A group of business partners had taken on significant risk to grow their company, and ran their personal finances very cautiously as a kind of counterbalance.
“We’re taking colossal risks with the money in our business, so we need to counterbalance that somehow.”
— Jackie Lockie, recounting a client conversation
It made sense on the surface. But the two sides of a financial life don’t always offset each other quite as neatly as they seem to. If one part of your own plan feels settled right now, it’s worth asking whether that’s because it truly is, or because another part of your life has quietly been carrying the weight for it.
What this means for you
You don’t need to scrutinise every line of every statement to get this right. What seems to matter most is staying engaged with the bigger picture, revisiting it regularly, rather than only looking again when something feels wrong.
The takeaway
A single decision rarely stays single for long, in your plan or anyone’s. The value of a proper review isn’t ticking a box once a year. It’s making sure your choices, today’s and the ones still ahead of you, are still speaking to each other.
If it’s been a while since you’ve looked at how your own decisions are lining up, that’s exactly the conversation a review is for.
If this has raised a question for you
If reading this has brought something to mind, whether it’s a decision you’re weighing up now or one already made that’s worth a second look, we’d be glad to talk it through.
That’s exactly the kind of conversation a review is for, and you don’t need to wait for your next scheduled one to have it.
The full conversation
Jackie’s full conversation with Jonathan is available on the Purposeful Wealth Podcast.
The full conversation covers more ground than we could fit here, including her thoughts on what three decades in the profession taught her.
Risk warnings
This article is for general information only and does not constitute financial advice. It should not be relied upon and independent advice should be sought before making any financial decisions.
The value of investments, and the income from them, can fall as well as rise, and you may not get back the amount originally invested.
Past performance is not a reliable indicator of future results.
Wells Gibson Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 731027).
