BLOG – Proactive vs Reactive

Fri 10th Aug, 2018 - 11:53 am - 0 Comments

Preparation is something I personally struggle with in some aspects as organisation is a skill I’m not particularly adept at. Which got me thinking recently that life can often be divided into 2 ways you prepare:

Proactively you’re preparing for the uncertainties ahead and in theory it should make navigating unfamiliar and scary territory more manageable.

Reactively you’re constantly playing catch up in life and whilst it challenges you better at the time as an individual – life ends up becoming a constant gamble and you often find yourself chasing your tail.

Charles Darwin once said: “It is not the strongest species that survive, not the most intelligent but the ones most responsive to change.”

Now this on the face of it would obviously suggest that reactively is the best way to operate but in fact it is quite the opposite – by preparing for change proactively and having a plan in place the change has significantly less impact and we come out of the other side of it better.

But how does this relate to Financial Services and Mortgages etc you may ask?

Well let me explain:

Financial Planning or Lifestyle Financial Planning is the epitome of Proactively preparing for life. By working alongside an advisor to (as our company motto suggests) to get you to achieve ‘your every ambition in life’ you’re in the best possible position to deal with change going forwards and the financial implications that has alongside it.

Turning more specifically to mortgage planning and in particular the planning of professional Landlords (which the FCA now defines as anyone with 4 or more Buy-To-Let Properties) there has been an increasing trend into moving properties into a specifically designed Limited Company.

The phased tax relief changes that are in force currently and will take affect from 2020 are set to significantly impact professional Landlords and as a result it becomes increasingly beneficial to work PROACTIVELY with an accountant and advisor to look at moving properties into limited companies before this period.

The example below shows the benefit from tax changes that clients would see from holding properties in a limited company from 2020 when these changes take effect:


As you can see the benefits from proactively planning are there. Can you really afford to be reactive and incur the significant costs coming your way?

The first pre-season rugby match looms this weekend (haven’t we just finished last season?!?!) – lucky I’ve been pretty proactive with my training and feel very well prepared! Before spending some downtime with my better half after a hectic couple of weeks.

Remember it’s the ones most responsive to change that survive!




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