In the world of financial planning, “investment growth” might seem more glamorous in comparison with “financial security” — yet the two go hand-in-hand.
Taking steps to ensure their financial security in the present is likely to be key in allowing your clients the time to generate the growth needed to reach their goals.
One man who has recently returned to the cultural zeitgeist with a reboot on the horizon — Fawlty Towers’ dour hotelier Basil Fawlty — could offer your clients a timely reminder about avoiding financial missteps that may disrupt their plans.
Read on to discover four simple lessons Fawlty Towers could teach your clients that might help boost their financial security.
1. Your clients should stay wary of potential scams and “too good to be true” offers
The first lesson comes in the very first episode of Fawlty Towers. The aristocratic Lord Melbury comes to stay at the hotel and Basil fawns over him and his every request.
Basil is sucked in by the opportunity to attract “a better class of clientele” and, without reservation, lends Lord Melbury cash, stores his briefcase of valuables in the hotel safe, and doesn’t pressure him to settle any outstanding bills.
This is until Polly discovers that Lord Melbury is, in fact, a con artist.
Basil is left out of pocket and, in unleashing his fury at Lord Melbury as he’s carted off by police, manages to scare off Sir Richard, an actual nobleman, who had been intending to stay at the hotel.
Scams are a very real problem that could affect your clients’ wealth and financial security. According to Forbes, Brits were scammed out of £609.8 million in the first half of 2022 alone.
Your clients should take their time doing their own due diligence checks on any potential offers or requests for personal information. A safety-first approach could go a long way towards protecting them from falling victim to a potential scam.
2. Your clients may want to consider protection to provide cover should the worst occur
The day-to-day activity at Fawlty Towers acts as an excellent advert for why your clients should consider having protection in place.
Some of the accidents and incidents that occurred at the fictional hotel include:
- Basil’s chef being incapacitated and unable to work an important event, potentially leading to disaster for the hotel
- Basil suffering a concussion during a fire drill before returning to work far too early, offending his guests with his outbursts in the process
- Basil’s doctor advising him that his stressful hotelier lifestyle is leading to his dangerously high blood pressure
- Manuel, the hotel’s waiter and bellboy, suffering a multitude of personal injuries throughout the two series
- The hotel failing a hygiene inspection, leaving Basil with a lengthy list of changes that are needed to avoid closure.
You would hope that Basil, or the very least his wife Sybil, would have protection in place to cover damage to the building, potentially being unable to work due to injury or illness, or the range of issues that may arise from the hotel’s mismanagement.
Your clients could consider taking out protection to provide them with cover should they:
- Be prevented from working by an unexpected injury or long-term illness
- Suffer a sudden loss of employment or be made redundant
- Want their loved ones to be financially secure in the event of their death.
Protection is often overlooked as an essential part of any financial plan. But having the right cover in place can go a long way should the worst occur.
3. Your clients might want to set aside an emergency fund to provide a safety net
One of the problems Basil frequently faces is not having enough cash in place to pay for short-term bills when disaster strikes. Basil often opts for the cheap, DIY solution and compounds problems for himself.
Setting aside an emergency fund can be a reassuring step for your clients to take that might help them through any short-term periods of instability.
By saving ideally three to six months’ worth of essential bills — such as rent or mortgage payments, utilities, and groceries — they could provide themselves with a useful safety net that could help them solidify their financial security.
4. Your clients could look to diversify their investments to account for any short-term instability
Basil Fawlty is very much an “all his eggs in one basket” kind of man. He rarely plans ahead or foresees potential negative outcomes. He comes up with a scheme and doubles down on it.
Basil has a very narrow focus, and it often backfires on him in comic fashion.
If your clients want to help boost their investments with added financial security, they should consider taking steps to mitigate against potential losses.
This might involve ensuring that any investment is aligned with their own personal tolerance for risk or taking steps to diversify their investments across various markets, companies, and commodities.
This is likely to mean that if a particular investment or market suffers a dip, their investments elsewhere might help offset any potential losses. Your clients shouldn’t be like Basil — they should look at the bigger picture and plan ahead.
Read more: 5 shrewd ways to help your clients endure the recession and protect their wealth
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Basil is often saved from the misfortune of his own making by the actions and advice of his wife Sybil and his general assistant, Polly. In fact, in many cases, if he’d just listened to their advice in the first place, he might have avoided many of the mishaps.
Your clients could similarly benefit from seeking out and listening to professional advice. It may help them make the right choices for their financial plans and help them reinforce their sense of financial security.
A good first step might be to email at info@grey-parrot.co.uk or call us at 02039 871782.
Please note
This article is no substitute for financial advice and should not be treated as such. To determine the best course of action for your individual circumstances, please contact us.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
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