In 1887, A Study in Scarlet introduced the world to Sir Arthur Conan Doyle’s most famous creation, “consulting detective” Sherlock Holmes.
Known for his powers of deduction, his logical reasoning, and for his band of associates – partner John Watson and archnemesis Moriarty to name just two – Holmes soon became a literary phenomenon and a milestone in crime fiction.
As Arthur Conan Doyle’s birthday approaches (he would have been 164 this year), read your look back at the career of literature’s most famous crime solver.
You might even find that Sherlock Holmes can help you answer one of life’s biggest riddles: “How best to manage my long-term financial plans?”
1. Master the art of logic and unemotional decision-making
Sherlock Holmes featured in four novels by Arthur Conan Doyle, and 56 short stories. Throughout his investigations, he solved murders, exposed thieves, and unravelled seemingly unsolvable mysteries. And he did it all with a calm head and a keen focus on logic and reasoning.
Managing your investments isn’t as stressful as tackling the criminal underworld, but it might not always feel like that. Money is an emotive topic and allowing emotions to override good sense is a very human trait (although not one Mr Holmes could be accused of possessing).
Sometimes the decisions we make are driven by biases. These can be emotional or cognitive, conscious or unconscious. Both can be damaging and the effects of the decisions we make can be huge.
You might notice biases slipping into your decision-making if you find yourself:
- Ignoring the pitfalls of hindsight – Retrospectively viewing past events as predictable and obvious could lead you to make risky and incorrect predictions about the future.
- Chasing the latest trends – Your investment goals are personal to you and the decisions you make need to be too. That means not following a herd with goals, risk profiles, and timescales different to yours.
- Making decisions based on preconceptions – Be sure to focus on the facts in front of you, rather than what you believe to be true. Remember: “There is nothing more deceptive than an obvious fact.” – ‘The Boscombe Valley Mystery’.
If you find emotions creeping into your investment decision-making, consider being more Sherlock. According to Dr Watson in ‘A Scandal in Bohemia’, the famous detective found “emotions […] abhorrent to his cold, precise, but admirably balanced, mind”.
2. Preparation is key, you are always learning, and your plans are allowed to change
“I should be very much obliged if you would slip your revolver into your pocket… That and a toothbrush are, I think, all that we need.” – ‘The Adventure of the Speckled Band’.
Holmes’s form of preparation might not be an exact match for yours, but the principle is a vital part of your long-term financial planning. You’ll need to think ahead, ask yourself the right questions and carefully consider what the answers mean for you.
This can be complicated. You’ll be juggling multiple scenarios – preparing for the unexpected while incorporating contingencies. That’s the nature of planning for the long term, but thankfully we’ll be on hand to help.
The obstacles you face might not involve midnight chases through London’s “fog-draped streets”, but life events and milestones could still upend your plans.
Remember that your priorities are allowed to change and that a robust financial plan is also an adaptable, pliable one, designed to suit you and your changing aspirations.
3. Always work alongside a trusted partner who understands your goals
The partnership of Holmes and Watson is one of the most famous in crime fiction, if not the whole of literature.
Both highly intelligent, the pair complement each other in countless ways. While Holmes is occasionally slow to admit it (“You have a grand gift for silence, Watson. It makes you quite invaluable as a companion.”), the admission does come eventually. In The Hound of the Baskervilles, the detective states “I confess, my dear fellow, that I am very much in your debt.”
In their fictional world, Holmes and Watson work together for more than 17 years. In real life, the long-term partnership between a client and their financial advisor can be even lengthier, just as important, and have even more impressive results.
Figures from a recent ILC report published by Unbiased have found that financial advice can help savers become £50,000 richer over 10 years, compared to those who don’t seek advice. And there are emotional wellbeing benefits too.
At Globe, we take the time to get to know all of our clients. This means that we understand your goals and what is important to you. This puts us in the best position to help you and your loved ones unravel life’s mysteries and solve whatever financial riddles arise.
Get in touch
At Globe IFA, our whole team – our own version of Sherlock’s Baker Street irregulars – works together tirelessly to achieve the best outcomes for all of our clients.
So, if you think that being more Sherlock could help you get the best out of your long-term financial plans, get in touch now.
Email hello@globeifa.co.uk or call us on 020 8891 0711 to discuss how our expert advisors can help you.
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. Your pension income could also be affected by the interest rates at the time you take your benefits. Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.
