Bob Dylan is one of just a handful of musical artists whose songs and lyrics transcend generations, cultures, and languages.
He is one of the most popular musicians of all time and if the ticket sales and award nominations of his new biopic, A Complete Unknown, are anything to go by, his popularity does not seem to be waning.
And, with the release of the film coinciding with the 50th anniversary of his seminal album Blood on the Tracks, there’s no better time to explore Bob Dylan’s work and discover the wealth management lessons hidden within his songs.
Read on to discover three lessons the lyrics of Bob Dylan can teach you about financial planning.
1. “The times they are a-changing”
Having lived through and pioneered a period of social revolution, Dylan knew that life is inherently unpredictable.
Whether it’s due to cultural shifts, market downturns, or unexpected events in your personal circumstances, the times are always “a-changing”, and it’s important that you’re prepared for such changes.
For example, if the changing times cause political unrest and upheaval, there may be market reverberations that cause some of your investments to fall in value. While predicting such an eventuality is all but impossible, you can prepare for it by ensuring your portfolio is well diversified.
By spreading your investments across different asset classes, regions, and sectors, you can help offset losses in one area with gains or stability in another.
If it’s your personal life that is shifting, it can be useful to ensure you have an emergency fund and a suite of financial protection available.
For instance, if you lose your job or are unexpectedly taken ill for a significant amount of time, an emergency fund can provide a financial cushion, or you may be able to make an insurance claim. This can allow you to cover essential expenses without relying on credit or dipping into long-term investments.
The times are always changing, and life has a habit of producing unexpected twists and turns. Although you often can’t foresee the changes, you can make sure you are ready for them when they come.
2. “May you stay forever young”
Bob Dylan wrote his much-covered 1974 song ‘Forever Young’ as a lullaby for his son. In it he speaks of his hopes and dreams for the boy and finally asks, “may you stay forever young”.
Dylan’s wish is, of course, impossible. However, it can serve to remind us about the importance of thinking about the future, even when you’re young and feel invincible.
For example, many young people don’t think about the value of saving for their pension in the early years of their career, but doing so can have a significant effect on their future financial security.
A study reported in insurance Edge found that starting your pension at 35 rather than 25 could leave you with £300,000 less in your pot, due to the growth potential of compound returns.
Over the course of your working life, compound returns can turn even small contributions into a significant retirement fund.
So, it’s a good idea to start saving into a pension as early as possible or make additional contributions to make up for any missed years in your career.
If you’re nearing retirement or already access your pension, you may want to encourage the younger generations in your family to plan carefully for their future finances. You can remind them that as much as they, like Dylan, might wish to stay forever young, time catches up and it’s important to think ahead.
3. “Knock, knock, knockin’ on heaven’s door”
Bob Dylan’s 1973 hit ‘Knockin’ on Heaven’s Door’ is one of his best-known songs. Originally written for the film Pat Garrett & Billy the Kid, it is recognised worldwide as an anthem about the approach of death and the fragility of life.
At some point in the future, the time will come for you to knock on heaven’s door and leave your family and loved ones with the earthly possessions you have accrued over the years. And when this time comes, it’s only natural that you’ll want your beneficiaries to receive as much of your estate as possible.
However, without careful planning, a significant portion of your wealth could be lost to Inheritance Tax (IHT) or could even end up going to the wrong people. Indeed, Money Week reports that IHT receipts for 2024/25 are on course to break previous records, in part due to the tax-free nil-rate bands being frozen until 2030.
With this in mind, it’s important that you have a comprehensive estate plan that fully utilises your allowances, clearly states your intentions, and considers various options to ensure optimal efficiency.
You can read more about how to ensure your estate is efficient in our previous article on the topic.
By planning ahead and leaving ample time before you knock on heaven’s door, you can leave a financial legacy that provides security and support for your beneficiaries.
Get in touch
Financial planning can bring you closer to your life goals and the things that matter to you most, giving you the freedom to live life on your own terms – much like the freewheeling Bob Dylan has done.
To speak to a financial planner, get in touch.
Email info@blueskyifas.co.uk or call us on 01189 876655.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The value of your investments (and any income from them) 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.