In July 2020, Amazon MGM Studios announced that it would be producing a live-action version of Fallout.
Based on the eponymous video game series created and produced by Bethesda Game Studios, the Fallout stories take place in a world ravaged by nuclear explosions. Many individuals have taken to living inside underground vaults (conveniently named “vault dwellers”) while others continue to brave the barren and vicious surface, affectionately known as the “wasteland”.
Whether you have watched and enjoyed the show, or this is your first time hearing of it, there’s no doubt that it has been a smash hit.
According to Forbes, the show amassed 7 million viewing minutes in its first three weeks in April, beating every other streaming show and setting new records. A month later in mid-May, journalists reported that the show had amassed 80 million viewers, a remarkable figure.
Sometimes, planning your finances can feel like trying to navigate Fallout’s wasteland. It can seem that there is danger around every corner, and the uncertainty as to whether your decisions will be sensible in the long run can be incredibly tiring.
Fortunately, the show contains many lessons that apply to wealth management, and learning them could help you better organise your own finances. So, read on to discover five of these lessons here.
1. Keeping your goals in mind can help prevent you from being sidetracked
A common theme in Fallout, both in the games and the TV show, is the danger of being sidetracked and taken down a path away from your main objective.
As the vicious Ghoul explains to his reluctant vault dweller companion, Lucy MacLean, as he drags her across the wasteland: “Rule number one of the wasteland is you always get sidetracked”.
Of course, had the Ghoul had clear goals and a plan to get there, perhaps he would have found himself getting sidetracked a little less frequently.
Having clear, tangible goals when planning your wealth can be incredibly useful for this same reason. For example, it might be tempting to be sidetracked by market volatility, and you may want to liquidate investments when they fluctuate in value.
Yet, you might be better served keeping your long-term goals in mind, and instead riding out the period of temporary uncertainty.
As long as you keep your targets front and centre, it’s far easier to remain calm and on track to achieve your ambitions.
2. It’s crucial to have protection against the unexpected
The root of the Fallout stories is the Cold War and the very real concerns people around the world had about the possibility of nuclear war.
To combat these concerns, a fictional company known as Vault-Tec created underground vaults for people to live in to ensure humanity could survive an attack.
Spoilers aside, it’s fair to say that Vault-Tec’s motivations are suspect at best. Regardless, the approach shows the importance of planning ahead and protecting yourself against the unexpected.
It might not be necessary, practical, or indeed even possible to protect yourself from the prospect of nuclear Armageddon. Still, it’s very much possible to secure your wealth against more common events that could threaten your financial wellbeing.
Events such as injury, illness, redundancy, or even your death could put you and your family in a difficult position if one of these emergencies were to befall you.
Fortunately, this is where financial protection can be hugely valuable. You may want to consider putting protection in place, such as:
- Life insurance
- Critical illness cover
- Income protection
While these might not help the hardy souls traversing Fallout’s wasteland, cover like this could make all the difference should an unexpected event occur. Putting them in place is a sensible step you can take to ensure your financial security.
3. It’s important to plan for your own death
Sometimes, unexpected events are simply unavoidable.
We see this time and again in Fallout, with few characters being able to protect themselves from the barbarity and danger they face every day in the wasteland.
Your daily life may not be as perilous as this. But even so, as difficult as it can be to think about, it’s still important to make arrangements for your own death.
For example, you might want to consider aspects such as:
- Creating a clear, comprehensive will that details how you want your estate divided on your death
- Inheritance Tax, and whether you can take steps now that reduce the tax liability your loved ones could face when you die
- Using trusts to safeguard your wealth, especially if you have a blended family or there are individuals who think they may have a claim to your money when you pass away.
No matter how old you are, it can be sensible to make these arrangements, ensuring that your wealth will be divided as you see fit and your wishes carried out when you die.
4. Time can be your greatest weapon
In a world that’s been devastated by atom bombs, it seems surprising that social-climbing Vault-Tec executive, Bud Askins sees time, rather than war, as the greatest weapon in the world.
As he explains: “Time is the apex predator… That is how we will win the great game of capitalism”.
Askins’ reasons for seeing time as the greatest asset he and Vault-Tec have are revealed throughout the series, and it’s fair to say his intentions aren’t exactly pure. But his central thesis on the value of time is well worth considering, especially for your wealth.
Time is one of your greatest assets because, simply, the more time you give your financial plan, the better.
The longer you have to save for your future, the larger pot you’re likely able to build. Additionally, this gives you a longer period to benefit from compound returns – that is, the growth you can generate on the growth you’ve already generated, and so on.
Furthermore, data shows that the longer your money is in the market, the greater your odds of generating a positive return. As figures from Schroders looking at the performance of the S&P 500 index show, those who invested for a period of one year would have lost money in inflation-adjusted terms 30.9% of the time.
But crucially, those who invested for 20 years would have lost money in just 0.1% of cases.
So, make time your greatest weapon and use it to achieve what you need with your wealth.
5. You need to surround yourself with people you know you can trust
Distrust is central to the Fallout stories. Whether it’s the Ghoul misleading those he’s with, or the highly questionable behaviour of Vault-Tec, many of those in the Fallout universe find themselves in peril because they’ve trusted the wrong person.
Trust is central to successfully managing your wealth, especially when you’re working with a financial professional. Otherwise, how can you be certain that they’ll act in your best interests?
At Cordiner Wealth, we exclusively pursue a client-centric approach. We’ll always make decisions with your best interests at heart, using your personal targets to design a financial plan that helps you live the type of lifestyle you want.
Thanks to our transparent financial planning process, you can have the reassurance that you’re working with a trustworthy professional whose primary goal is to help you achieve yours.
Get in touch
While you might not face the same pressures as the vault dwellers or those trying to survive the wasteland, you could still benefit from help when managing your wealth.
If you’d like to work with an experienced financial planner, please do get in touch with us at Cordiner Wealth today.
Email hello@cordinerwealth.co.uk or call 0113 262 1242 to find out more.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
The Financial Conduct Authority does not regulate estate planning.
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.
Note that protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.