Planning for an Uncertain Future
April 2020

While the future is always unknowable, sometimes it feels more unclear than others. Financial planning involves looking into the unknowable future and considering the desired and possible outcomes.

How can we plan for a future if we don’t know what it will look like?

• Get clarity on what is knowable: where you are and where you’ve been.

o Review your assets & liabilities to know how much you own and how much you owe.
o Review your past cash flows to understand your spending. Evaluate what is mandatory and what is discretionary.
o Reflect on your values to determine important elements to include in your plans.

• Be open to many different possibilities.

o Look to the horizon for outcomes that are possible for you, starting from where you are.
o Evaluate the desirability of possible outcomes.
o Determine what is within your power to increase the likelihood of desirable outcomes and decrease the likelihood of undesirable outcomes (or limit the damage if they occur).

• Be prepared to adjust course as needed.

o Consider possible alternatives if you encounter obstacles in your path.
o Accept that the unexpected is very likely to occur so you may need to adjust course to head toward a more desirable outcome if an undesirable outcome occurs or looks increasingly likely.
o Know that you might change – you may think that something is desirable but when you achieve it find it wasn’t quite what you wanted. Or you may end up with something you thought you didn’t want, only to discover that it is exactly right for you.

• Take action.

o Seek perspective – whether talking to a friend or getting assistance from a financial planner, talking through your possible future outcomes may help you define your next steps.
o Small actions make a big difference in your outlook in a world that can feel out of control.

The exercises outlined above will help prepare you to adapt more easily if an unimagined situation does occur. If you follow these steps, you will have the information and frame of reference readily available to make informed decisions rooted in your own knowledge and understanding of your financial circumstances, preferences, and perspectives.

IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Pathway Financial Advisors, LLC-“Pathway”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Pathway. Please remember that if you are a Pathway client, it remains your responsibility to advise Pathway, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Pathway is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Pathway’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request. Please Note: Pathway does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Pathway’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.