What Queen Elizabeth II can teach you about good financial planning

Queen Elizabeth II

In June 2022, Her Majesty the Queen will become the first British monarch to celebrate a Platinum Jubilee after 70 years of service.

A series of special events to commemorate the jubilee are planned, with a special extended bank holiday weekend likely to see millions attend street and garden parties to celebrate the Queen’s reign.

When it comes to financial planning, there are three key lessons Her Majesty can teach us about good financial planning.

1. “Keep calm and carry on”

During her reign, the Queen has seen more than 170 individuals serve as her realms’ prime ministers. Boris Johnson is the 15th UK prime minister to serve during the Queen’s 70 years on the throne.

It’s fair to say that Her Majesty has seen her fair share of major world events. From the Suez crisis to the Covid pandemic, the Queen has been a constant through war, recession, and natural catastrophes. She even survived an assassination attempt and an intruder into her private quarters in the 1980s.

While “keep calm and carry on” is a motivational phrase that pre-dates the Queen’s accession, it has become a mantra for the steadfast and dignified service she has given.

It’s also a brilliant lesson for managing your wealth. Even through the most difficult periods (remember the “annus horribilis”?) the Queen has remained calm and patient – and it’s something we always remind clients.

Global economies and markets are volatile places but, in the main, tend towards positive growth. Take a leaf out of Her Majesty’s book and don’t panic when things are uncertain – just focus on your long-term goals.

2. Geographical diversity offers many benefits

While we may see the Queen as our head of state, a defining trait of her reign has been her commitment to her role as head of the Commonwealth.

While the role is not a hereditary one, Elizabeth II assumed the position as head of the Commonwealth on the death of her father, George VI. Considering that the organisation has a membership of 54 countries – and nearly a third of the world’s population – it’s a job she has always taken seriously.

Between February 1952 to 2015, when the Queen last made an overseas visit, she made 200 trips and visits to Commonwealth and UK Overseas Territories, visiting all but two Commonwealth countries.

In her 2022 Commonwealth message, Her Majesty said: “Our family of nations continues to be a point of connection, cooperation, and friendship. It is a place to come together to pursue common goals and the common good, providing everyone with the opportunity to serve and benefit.”

Looking beyond your own national border is also a great way to approach the management of your wealth.

According to Statista, the UK share of the total world equity market is only around 4%. So, in simple terms, if you invest more than 4% of your wealth in the UK, you are “overweighted” in UK investments.

Diversifying your portfolio across global markets can help you to manage risk in your portfolio. For example, while the MSCI Asia ex-Japan stock index fell by 4.5% in 2021, the US S&P 500 rose by 27.8% during the same period.

Making sure you are geographically diversified can help to balance out losses in one region with gains in another.

3. A trusted confidant can be worth their weight in gold

On the occasion of her golden wedding anniversary, the Queen said this about her husband, Prince Philip: “He has, quite simply, been my strength and stay all these years, and I, and his whole family, and this and many other countries, owe him a debt greater than he would ever claim, or we shall ever know.”

For more than fifty years, the Queen benefited from the support and trust of her “constant strength and guide”. The Duke of Edinburgh stood by the monarch’s side as her husband for almost 74 years, making him the longest-serving consort in history.

When navigating life’s tricky moments, having a trusted confidant can be invaluable – and this is as true for managing your wealth as it is if you are a head of state.

When we ask clients to identify the benefits of working with BlueSKY, they always tell us the same thing. It’s not about “returns on investment” – it’s about peace of mind, support, and the reassurance that they have someone they can trust in their corner.

While we might not stand by your side for 74 years, we can certainly be the sounding board and confidant you need when it comes to your finances.

Get in touch

To find out how we can help you to achieve all your life goals, email info@blueskyifas.co.uk or call us on 01189 876655.

Please note

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.