Previously, we’ve explored what evidence based investing is, and how it works.

But until now, we haven’t discussed what it is for – the fundamental reason financial advisers and planners like us follow a strategy that is designed to plod on rather boringly until it reaches its final destination.

It’s not to make as much money as possible from the funds you invest in, or to beat the market, like many active investors and fund managers try to do.

The role of an evidence based financial adviser and planner is to ensure you reach financial freedom at a time of your choosing.

We call it financial freedom because we believe time is more important than money.

Financial freedom could be retirement, or just living a lifestyle that isn’t dependent on what you earn. It’s when your money starts working for you, instead of the other way round.

The average life expectancy in the UK is around 81 years. That’s 972 months, or almost 29,600 days.

At the age we start working, our human capital – the value of all our future earned income – is at its highest. We exchange this for financial capital when we get paid for the work we do over the next 40 or 50 years.

As we age, our human capital declines but, with good financial planning, our financial capital, or assets, will increase to cater for our future requirements.

We can look at a lifetime of income and expenditure as filling a bucket.

We start with nothing and gradually fill the bucket over our lifetime with the income we earn from working, dividends and any other sources.

Of course some of that income flows out again as everyday living expenses, purchases and taxes, but as long as we invest for the future, the bucket keeps on filling up.

As we get older, the money we take out may reduce – we have paid off our mortgage, there are no more school fees, and so on. We can also potentially put more in, from the sale of a house or business, or from an inheritance, plus of course any pension pot we have built up.

When we stop earning, there will be enough in the bucket to live the way we wish.

But this isn’t left to chance, or to the markets to decide.

An evidence-based financial planner will work with you to design an investment portfolio that focuses on delivering what you need to live the life you want, and making it available to you when you want your financial freedom to begin – at 30, 40, 50, 60 or whenever you choose.

Any inheritances and legacies will have been planned in, so that your family and beneficiaries do not have to worry about paying tax on any money left in your estate – you will have spent it enjoying your financial freedom!