13 September 2024 is Roald Dahl Day, a celebration of one the most iconic children’s authors in history. Despite publishing his first book – James and the Giant Peach – in 1961, new generations continue to enjoy his fantastical stories to this day.
His unique style and memorable characters captured the imagination of children around the world, and countless film and TV adaptations cemented Dahl’s stories in the public consciousness.
Parents also love the stories because, underneath the bombastic characters and ludicrous plotlines, there are often moral lessons that children could learn.
But did you know that you might also find financial lessons hidden inside some of the magical tales?
1. Fantastic Mr Fox and the power of a detailed plan
Fantastic Mr Fox is a classic Roald Dahl story about a family of foxes at war with the local farmers. The titular Mr Fox is constantly finding new ways to steal the farmers’ chickens and feed his family.
However, the foxes come unstuck when the farmers, Boggis, Bunce, and Bean club together to protect their chickens. The three of them trap the foxes underground, cutting off their food supply in the process.
Fortunately, Fantastic Mr Fox creates a detailed plan to burrow underground and gain access to the chicken coops from below. This gives him and his family a healthy supply of food, while the farmers are none the wiser, waiting above ground for the foxes to appear.
The last line of the book reads: “And so far as I know, they’re still waiting”.
By creating and enacting his plan, Fantastic Mr Fox was able to support his family’s needs for a long time to come.
A good plan could have the same power when it comes to your finances. Developing a comprehensive financial plan means that you’re able to meet your financial obligations and achieve short-term goals such as travelling or purchasing a new car.
It also means you can build wealth for the future and look after yourself and your family in later life, just as Fantastic Mr Fox did when he secured a steady supply of chickens.
2. George’s Marvellous Medicine and the challenges of creating an investment portfolio
In George’s Marvellous Medicine, young George is left alone with his overbearing grandmother. As revenge for her mistreatment of him, he decides to swap her medicine out with a concoction of his own making.
His “marvellous medicine” is a mix of disparate ingredients including toothpaste, gin, shampoo, horseradish and paint. To his surprise, when he tricks his grandmother into drinking it, she grows to an incredible size.
The same lesson can apply to creating an investment portfolio. By “diversifying” – investing in a wide range of sectors and product types – just as George did when choosing ingredients, you could be more likely to create growth due to the gains from some investments which may offset the losses elsewhere.
Yet, this is only part of the story. After seeing the powerful medicine in action, George’s parents urge him to recreate it so they can sell it around the world. But no matter how hard he tries, he can’t.
Eventually, one of his attempts has the opposite effect and shrinks his grandmother until she disappears.
So, simply having a wide range of different ingredients isn’t enough. George needs the right type of ingredients to achieve his goal.
Your investment portfolio is the same. While diversification is important, you also need to carefully consider the types of investments you choose, and whether they will help you achieve your goals. If you get the mix wrong, like George did, you might shrink your wealth instead of growing it.
Selecting the right investments can be incredibly challenging, so you may benefit from professional support when creating your portfolio.
3. Charlie and the Chocolate Factory and the importance of estate planning
Charlie and the Chocolate Factory tells the story of Charlie, a young boy from a disadvantaged background who finds a golden ticket in a bar of chocolate. The ticket earns him a place on a tour of the mysterious Willy Wonka’s chocolate factory.
Charlie and his Grandpa Joe arrive, along with four other children and their parents, to meet Willy Wonka and explore the wonders of his chocolate factory. Along the way, the rest of the children have unfortunate accidents such as falling into chocolate rivers or turning into blueberries, until only Charlie remains.
At the end of the story, Willy Wonka reveals that he opened the factory to visitors so he could choose somebody to inherit it, and Charlie is the lucky one.
Willy Wonka spent his life building his chocolate empire and when he began thinking about what would happen after he was gone, he didn’t want to leave anything to chance. He wanted to make sure that his estate went to somebody who would benefit from it and take care of everything he built.
You’ll likely feel the same about your own legacy.
While you might not create an elaborate ploy to find the perfect beneficiaries, it’s important that you put careful thought into your estate plan. You may also need to consider who should be the executor of your will, as you need a trustworthy person to handle your estate.
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For financial advice or to speak to your usual adviser, get in touch or email us at advice@mlifa.co.uk.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The Financial Conduct Authority (FCA) does not regulate estate planning or will writing.
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.