What will life be like when the COVID-19 crisis passes?
What aspects will stay with us, and what will disappear?
We’ve been thrust into a moment of rapid change, but most of us don’t like change. It makes us feel uncomfortable.
We like a level of certainty about our future, health, and jobs, as well as about the worlds of finance and property that most of us are interested in.
But there are lessons in history that can provide us with valuable insights.
In today’s episode, we’ll talk about some of the things that never change in a world that never stops changing.
Successful investors and business people need to be prepared for change but also understand the things that don’t change.
So, by the end of today’s show, you’ll come out with some ideas about how to get some more certainty in these uncertain times.
I’m also going to share a mindset moment from one of my mentors and have a chat with Ken Raiss about estate planning.
Some things that never change in a world that never stops changing
The things that never change are the most important things to pay attention to.
However, change gets the most attention because it’s exciting, it’s surprising, it’s something that the media can comment on.
You see…predicting the future is hard. Very few can do it.
On the other hand, understanding what stays the same is very useful.
Particularly in challenging times like we’re currently experiencing.
Of course, I still have no idea what’s going to happen in the future, but I’m a little less surprised whatever does happen if I have a handful of assumptions that I can put my faith into to guide me moving forward.
1. More people wake up every morning wanting to solve problems than wake up looking to cause harm.
I’m an optimist and have faith in society, but I recognise that those with a negative message get more airplay in the media and incite negative sentiment in our community.
Fact is… in life you get whatever you expect to get. The only question is, what do you want?
If we were not optimistic, none of us would bother setting up a business, employing people, taking risks, or investing in property.
If we were totally realistic about how often people fail, how often things go wrong, how most property investors never build a substantial property portfolio, we would never even bother getting started.
Your outside world is a reflection of what’s happening inside your mind.
So, feed it with positive, optimistic thoughts.
2. The world breaks about once a decade.
This is an interesting expression I learned from columnist Morgan Housel of the Collaborative Fund.
But it’s true and there seem to be very few exceptions to this.
There is a major disruption every decade or so. It could be an economic, political, military, or social issue.
3. The bad news is never as bad as it sounds
How many times does the end of the world as we know it needs to arrive before we realise that it’s not the end of the world as we know it?
Of course, those with a long-term perspective, who have lived through a number of economic shocks and property cycles, tend not to get as shocked when major events like we’re now experiencing hit us.
However, those who have not experienced these types of shocks tend to worry more and imagine the worst because they have no perspective to rely on.
4. This too shall pass
Nothing too good or too bad stays that way forever.
I’ve found these types of major upheavals are not as scary if you have the underlying belief that they’ll keep happening but that in the long term they don’t prevent the long-term growth of our economy and our property markets.
5. History doesn’t really repeat itself.
We’ve all heard it before - “History repeats itself!”
It’s an inane statement that seems so wise on the surface but crumbles under serious scrutiny.
Morgan Housel wisely said: “History is mostly the study of unprecedented events, which, ironically, we then use as a map for what could happen in the future.”
Estate planning is something a lot of people don’t think about until it’s too late.
But you want to be able to pass on your wealth in an efficient manner, and estate planning is crucial to your overall wealth plan.
Some critical estate planning documents:
A will – your will should be set up so that instead of passing on your assets to your beneficiaries directly, they’re passed on in a testamentary trust. This has tax benefits and helps to ensure that wealth remains in the family.
Non-Estate Assets – You may need either a Binding Death Nomination or Superannuation Will in order to distribute superannuation funds.
Enduring Power of Attorney – this document pass decision-making authority onto another person in the event that you’re physically or mentally incapacitated. These documents can give authority that is as broad or as specific and narrow as necessary.
Medical Power of Attorney – This document helps you to finalize your wishes in relation to things like organ donation.
Personal Details – This is a non-legal document that can help you pass on things like account numbers, passwords, where to find policies and valuable items, information necessary for paying bills, subscription information, and so on.
Links and Resources:
In these challenging times why not get the team at Metropole to build you a personalised Strategic Property Plan – this will help both beginning and experienced investors.
Why not have a chat with Ken Raiss of Metropole Wealth Advisory
Some of our favourite quotes from the show:
“In my mentorship program, I know that those people who write down their plans, write down their goals, and visualize them are much, much more likely to get them.” – Michael Yardney
“Your reticular activating system is that part of your brain that cuts out all the surplus extraneous information that’s coming in and hones in. It’s your GPS.” – Michael Yardney
“In summary, prepare for the inevitable by having somebody on your side preparing a number of documents, including a will.” – Michael Yardney
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