What the Back to the Future ripple effect could teach you about financial planning

It’s been 40 years since Back to the Future delighted cinema-goers with its time-travelling adventure. Teenager Marty McFly discovers the power of the “ripple effect”, and it’s something that could be valuable when you’re creating a financial plan as well. 

One of the plot devices in Back to the Future is the ripple effect – the spreading impact of an initial event. Even a seemingly small change to the timeline has the potential to have far-reaching implications. 

The ripple effect can change the course of your life, too. Small decisions or events outside of your control could have a far larger effect on your future than you might expect. 

The good news is financial planning could give you a glimpse into the future too. While cashflow modelling doesn’t involve hopping into a DeLorean with your financial planner and reaching 88mph, it could offer you insights into your future that are just as valuable. This guide explains why.

There are other useful lessons you could pick up from Back to the Future as well, including:

• Balance your short- and long-term goals.

• Prioritise what makes you happy.

• Focus on following your own path.

• Be prepared for the unexpected.

• Recognise when you could benefit from working with a professional.

Download your copy here: “What the Back to the Future ripple effect could teach you about financial planning” to discover more about these lessons hidden in the cult classic.

If you want to talk to us about how cashflow modelling could inform your decisions, or any other aspect of your financial plan, please get in touch. 

Please note: This guide 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 cashflow planning, tax planning, or estate planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.  

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.