Financial Planning For The Long Term

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The McKinsey Global Institute issued an interesting discussion paper.

Companies with a long-term view outperform their peers on a range of key economic and financial metrics.

Their analysis used a data set of 615 large and mid-cap US publicly listed companies from 2001 to 2015.

It is based on patterns of investment, growth, earnings quality, and earnings management.

This enabled them to separate companies that take a long-term view from others and compare their relative performance, after controlling for industry characteristics and company size.

It would seem that companies would highly benefit from long-term independent financial advice.

In summary, companies with a long-term view:

  • Exhibit stronger fundamentals
  • Deliver superior financial performance
  • Continue to invest in difficult times
  • Add more to economic output and growth

Independent financial advice for your long-term

Here at Plutus Financial Guidance, we are financial planners offering certified independent financial advice. This simply means we will not take incentives for any of the advice we offer, nor will we charge asset-based fees. All of our work is tailored to each of our client’s particular needs.

Book a consultation for an unbiased review of your financial position today.

Source: McKinsey Global Institute