Despite some recent – and well-publicised – controversies, Strictly Come Dancing waltzed back onto our screens last month, promising to brighten the nation’s Saturday nights from now until Christmas.
Celebrating its 20th anniversary this year, fans of the show will know exactly what to expect. But amid the sequins, glitter, fake tan, squabbling judges, and occasional death-defying lift, this behemoth of primetime glitz and glamour might also have some lessons to teach about your finances.
Here are just five of them.
1. To lift the famous glitterball trophy you’ll need determination, resilience, and a firm focus on your long-term goal
Listen to any Strictly celebrity talk about the show and you’ll hear about their “journey”. As they move from dance novices to kings and queens of the ballroom, contestants invariably discover a love of dance, a greater sense of what they can accomplish, and an unwavering desire to lift the glitterball trophy come December’s final.
Winning the show requires a huge amount of skill, as well as determination and laser focus. These are traits you can bring to your long-term financial plans too.
When you first spoke to us about your finances, we’ll have asked you about your ultimate goals and what your dream post-work lifestyle looks like. This is your glitterball trophy, and it’s what you need to focus on throughout your own retirement journey. That means in the build-up to retirement, but once it arrives too.
At HA&W, we can help you to stay focused on your goals, whatever happens in the wider world, ensuring that you always remain in time, in step, and on track.
2. Marginal gains play a huge role in the training room and your retirement pot
Head judge Shirley Ballas talks a lot about “fundamentals”. These are the small details on which a whole dance is based and that must be right if the routine is to be a success. From heel leads to hand position and the perfect frame, the tiniest changes can make a huge difference.
A 1% improvement across multiple areas can soon add up, and these improvements – or “marginal gains” – are what the celebrity contestants will be hoping to make each week.
In terms of your long-term financial plans, a marginal gain might be:
- A 1% increase to your monthly pension contributions that compounds over time
- Small decreases to your monthly household expenditure leading to a larger saving
- Increased gifts to loved ones that ultimately mitigate an Inheritance Tax liability.
Small changes to the basics can soon add up, promoting your saving and investing from a slapdash “dis-aas-ter” to an impeccable “10 from Len”.
3. Why you’ll need to master Latin and ballroom dances to diversify and achieve long-term success
From the Argentine tango to the Viennese waltz, and the Charleston to the cha cha cha, each dance the celebrities must master comes with its own rules and challenges.
Throughout an entire series, successful competitors will be those who master the Latin and ballroom disciplines. And just as this series’ celebrities can’t put all their eggs in one dance-style basket, nor can you afford to put your whole investment fund in one asset type, sector, or region.
Just like Strictly’s dance professionals, we understand the importance of diversification. By diversifying your portfolio, we spread your investment risk, helping to ensure that a drop in one area is counterbalanced by a rise elsewhere.
4. Pitching challenging choreography at just the right level means balancing risk and reward
For every Abbey Clancy and Caroline Flack, they’ll always be a John Sergeant and a Tony Adams. And while all skill levels have their place on a show that promotes the joy of dance and the importance of the aforementioned “journey”, it’s also true that the professionals need to understand the limits of their celebrity partners.
From riding gold canons and heading footballs (Tony Adams) to being mercilessly dragged across the floor (Anne Widdicombe), pitching choreography at the right level is vital. Likewise, huge lifts and complex moves can garner high scores for the most competent, but they come with their own risks attached.
When we’re helping you to align your investments to your risk profile, we’ll be balancing your capacity for loss, your time scales, and the level of risk you’re willing to take.
This isn’t always easy, but our combined decades of experience in the markets can help. It’s also important to remember that your attitude to risk can change as you become more experienced, just as a dancer’s choreography can become more elaborate as the series progresses.
5. There are times when we all need expert help, so choosing the right professional partner is crucial
At the start of each series – and after a painstaking process – the Strictly producers reveal the dance pairings for that year. They know that audiences want chemistry, and that means finding the professional who can get the most out of each celebrity. And the same is true of the financial adviser you choose.
At HA&W, we pride ourselves on the long-term relationships we build with all of our clients, helping you at each stage of your life, and even helping the next generation too.
We do this through our expertise and knowledge, but also through the reassurance and peace of mind we give. Just as judges’ scores each week can provide a much-needed boost or an area for improvement, our regular reviews and open-door approach mean that we’re always there if you need us.
Get in touch
HA&W’s combined years of expertise and experience might not help you to master the paso doble, but we can provide financial help and reassurance. If you’d like to discuss any aspect of your long-term financial plans, get in touch. Contact us now to find out how our Chartered financial planners could help you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
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. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
