St. Patrick’s Day is celebrated every year on the 17th of March to honour our patron saint, St. Patrick. This day is considered to be the most prominent day in our cultural calendar, and it has become popular worldwide, thanks largely to the extent of the Irish diaspora. Even though St. Patrick’s Day is not directly related to investing, it made me think about the supposed “luck of the Irish” and how it may influence financial planning and investing.
Luck is often used to describe events that seem random or chance occurrences that lead to favourable outcomes. However, it’s important to realise that luck is not always a reliable factor in achieving success or failure. Having a financial plan is a better approach to managing some of the unpredictability that comes with investing or what life may bring.
Many investors believe they are lucky to experience higher than expected investment returns due to favourable market conditions or maybe by selling their property at the right time. However, it’s crucial to acknowledge that markets can be unpredictable, and true success in investing is typically achieved over the long term by having a well thought out diversified investment strategy with a disciplined approach that doesn’t rely solely on luck. For example, the Castle Capital Centralised Investment Proposition is the work of multiple advisors and many, many hours of research.
Although winning the lottery or receiving a large, unexpected inheritance can certainly be considered lucky statistically and boost your finances, it’s essential to understand conversely that unforeseen setbacks, such as medical emergencies or job loss, can negatively impact your finances if you are not prepared. Financial planning involves preparing for these unexpected events by having emergency savings, insurance coverage, contingency planning and by focusing on the fundamentals of your lifestyle that are important to you regardless of luck.
So, on this St. Patrick’s Day, don’t leave your financial future to chance, why not drive those snakes and uncertainties out of your finances and meet with me, Fergus Murphy CFP, to develop your financial plan?
Email Fergus on fergus@castlecapital.ie.