When people think about financial risks, they tend to think of market volatility, interest rate hikes, or changes in tax regulations. But there’s another risk that’s far more common and often overlooked – doing nothing!
All across the country, people are working hard to build their wealth, for themselves and their families. Through successful careers, running a business, or careful saving, they’ve have already done a great job. But often, once those foundations are in place, life gets busy, and planning for the future can slip down the priority list.
In the meantime, opportunities can be missed, and the value of what you have worked hard to earn doesn’t go as far as it could.
The Impact of Standing Still
Financial inertia is rarely intentional. It’s not about making bad decisions, more often it’s about making no decisions. And while that might seem harmless, over time it can quietly eat into the effectiveness of your wealth.
You might have funds sitting across several different accounts, investments that haven’t been reviewed in years, or pension arrangements set up long ago and never revisited. Maybe you’ve started thinking about succession or tax planning, but never quite got around to putting that plan in place.
We get it! It’s not always easy to know where to start, and unless there’s a burning reason to act, doing nothing can feel like the safer option.
But here’s what we often say to clients, doing nothing is a decision. And over time, it can come with a cost.
What You Might Be Missing
Here are a few common ways financial inertia can work against you:
1. Past plans might not meet today’s needs
If your savings or investments aren’t being actively reviewed, they might not be growing the way they could. With the cost of living on the rise, standing still can actually mean falling behind. Over the years, that can reduce what your wealth can do for you, whether that’s supporting your retirement, helping your children, or funding future goals.
2. Overlooking Tax Planning Opportunities
Our tax system offers a number of ways to manage and protect your wealth, through exemptions, reliefs, or more efficient structures. But many of these options are only available if you plan ahead. Without taking action, you could be missing out on benefits that are well within reach.
3. Plans That No Longer Fit Your Life
We often meet people whose financial arrangements were set up years ago. Since then, their lives have changed – family situations, work, personal goals. If your finances haven’t been updated to reflect where you are now, they might not be doing what you need them to.
4. Succession Conversations That Get Put Off
Talking about inheritance or future planning with family can feel difficult, but avoiding it often leads to more stress later. Without a clear plan, it could be Revenue that decides how your estate is handled. Wouldn’t you prefer to make those decisions yourself?
Small Steps Can Make a Big Difference
You don’t have to overhaul everything. In fact, the most effective changes often start with a simple review.
That might mean:
- Bringing your accounts and investments into one clear picture
- Looking again at your pension and how it’s performing
- Starting a conversation about what you’d like to pass on, and how
- Making sure your current plan still aligns with your future goals
The important thing is to begin. Your financial plan should work with you and reflect where you are in life, not where you were ten years ago!
Take control back, don’t let Inertia decide your future
Whether you’re looking for a fresh perspective, trying to make sense of what you already have, or thinking about what legacy you want to leave behind, this is the time to take stock. It’s never too late to take a fresh look.
At Rockwell, we know how hard you’ve worked to build your wealth. We’re here to help you make the most of it, so it works harder for your future, your family, and the life you want to live.
Get in touch for a complimentary consultation
