Every now and then, unexpected events can take people by surprise. That happened recently with the UK’s EU referendum, and it caused a flurry of activity across world markets. Short-term volatility can make investing in shares uncomfortable, but that discomfort comes with the territory and it’s important to keep it in perspective.
We manage your assets to an investment strategy that is designed to achieve your financial goals. Where those goals are longer term, we use stocks and bonds to provide the growth required to achieve a positive return, above inflation. The value of shares can rise and fall from day-to-day, month-to-month and even from year-to-year. But, over time, they have provided a higher return than many other comparable assets.
This image illustrates the point. It shows the MSCI All Country World Index, a broad index of stocks from around the world across both developed and emerging equity markets, and, for historical context, a selection of news headlines. It is clear that recent volatility is not unprecedented and while uncertainty can make investing uncomfortable, world stock markets are still capable of delivering a positive return in the long term. Since 1988, when this index starts, £1 invested has grown to £10.84. 1
The message is: stick to the plan, even during times of uncertainty. It sounds simple, but requires self-discipline and a belief in the power of markets that we can help you achieve. And with that discipline comes the ability to take surprises in your stride.
Over the month weeks and months, we are looking to improve the personal finance portal (PFP) for our clients. The first stage is to introduce a live chat, audio and video service whilst clients are logged into PFP. This is the first level of improvements we will be making over the coming months. The live chat service is safe and secure.
Quite often friends and clients ask me about the best pension plans and I can understand. Pensions are complicated, even more so since Pensions Freedoms came into play.Successive Governments have tinkered with the pension rules and regulations time and time again. I started in the Financial Services Industry in 1984 and I can say each year the government has made some sort of change. Sometimes for the better or worse, but usually it adds another layer of complication. Terms such as Lifetime allowance, Fixed Protection, Capped and Flexi Access Drawdown are technical terms that generally confuse the public.In its simplest form a pension is a savings contract with tax breaks written under pension rules.