Firebreaks for your financial plan

I recently shared a thought on LinkedIn about the striking parallels between wildfires and poor political leadership.

Both forces inflict damage that is often hidden until it is too late. The economic toll, the erosion of the environment, and the lingering health risks. All of these are the "lagging indicators" of neglect. By the time you see the smoke, the damage is often already done.

I believe that we face a similar landscape when it comes to our governance and planning for family and intergenerational wealth.

We exist in an environment where "external fires"—be they market volatility, regulatory shifts, or geopolitical instability—are inevitable. We cannot control the weather, and we certainly cannot control the politicians.

But we can control the governance of our own "family economy."

Just as a country suffers under poor leadership, a family fortune suffers without a clear constitution. When we view wealth through the lens of family practice, we realise that the "wildfires" that threaten a legacy rarely come from the stock market alone. 

They come from internal "bad policies"...

The Economic Toll of Inaction: Just as delayed policy decisions cost billions, a lack of liquidity planning or tax efficiency acts as a slow burn on your wealth. It isn't a dramatic crash; it is a silent erosion of value over time.

The "Environmental" Devastation of Conflict: A family without a shared vision is like a dry forest waiting for a spark. Sometimes, the biggest destroyer of intergenerational wealth is not inflation; it’s litigation and conflict between heirs. Without a clear estate plan and open communication, the "ecosystem" of the family unit can be permanently damaged.

The Health Risk of Anxiety: Uncertainty creates stress. When a family feels exposed to every shift in the political or economic wind, it creates a state of chronic financial anxiety. This is a potential gap where family leadership could be improved.

If the world outside is volatile, the world inside your financial plan must be structured.

In forestry, we build firebreaks, cleared strips of land that stop a fire from spreading. In bespoke financial planning, we help you build similar defences:

1. Diversification is a firebreak against local economic instability.

2. Liquidity is a firebreak against unforeseen life events.

3. A Family Constitution is a firebreak against emotional decision-making.

We may be frustrated by the lack of foresight we see on the global stage, but that should only strengthen our resolve to demonstrate better leadership within our own families and businesses.

You are, effectively, the President of your family’s future. The "policies" you set today—regarding risk, spending, philanthropy, and education—determine whether your wealth will be a source of fuel for the fire, or a shelter from it.

We cannot stop the wind from blowing. But we can ensure that when the smoke clears, your house is still standing.

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If recent market headlines or personal changes have left you feeling unsettled, I’m here. Let’s revisit your plan, check in on your goals, and make sure your strategy still fits the life you’re building.