Can you afford drawdown?

The pension freedoms that have been given to everyone aged 55 or over, offer the chance to use drawdown, once the preserve of wealthier retirees, no matter how much has been saved.  This ability to dip into your pension for cash lump sums as well as to use it to provide a retirement income is open to everyone but it’s only realistic if you’ve saved £100,000 or more.

Just because everyone can now access drawdown it doesn’t mean that everyone can actually afford to do it. Many independent financial advisors have real concerns that individuals don’t understand how long their retirements could be being a bit rash in accessing cash in the early years, leaving them with a meagre income in later years.

Simon Massey, wealth management director of MetLife, a pension provider, says ‘There is a key question about…how long your money will last,’ he said, ‘ a man aged 65 has a one-in-four chance of living to 90 and a one-in-10 chance of living to 100.’ Massey believes that in order to be able to benefit from drawdown, someone needed savings of ‘between £100,000 and £150,000’ as a minimum. ‘Unfettered drawdown is right for some clients if they have the capacity for loss and they can take a long-run view but not a lot of customers are in that position,’ he said.  In short, many people have not saved enough to be able to raid their pension for lump sums and also expect it to provide an income.

Massey said recent stock market turbulence had added to the problems of drawdown cash running out as some people who had their money invested through a drawdown plan ‘will be feeling the effects of the downturn right now’. If you need help looking at your drawdown options Enable’s IFA’s in Bishop’s Stortford are happy to look at the options with you.




Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE  

Getting your house in order for an interest rate rise

The point at which interest rates rise has been in the back of many borrowers minds. Recent research published by the Building Societies Association suggests that at least 1.85 million home owners have never experienced an interest rate rise in the time they have been borrowers, understandably many are concerned about how they will be able to meet their mortgage repayments when Bank Rates do rise.

The trade body surveyed 2,000 borrowers and found that 10pc expect to experience real financial problems following a rate rise. The report also said that just over half of all borrowers believe they are likely to struggle or fall behind with their payments when the Bank of England pushes up rates.
A further 14pc said they will be able keep up with their repayments, but will struggle constantly and a quarter expect to experience difficulty “from time to time”.  A further 15pc said they will have to work more hours in order to keep on top of their mortgage commitments and 4pc said they will have to borrow money from other sources.

Commentators on the report have said that “Households now have a window of opportunity to reassess their budgets, look again at their borrowing and think about how they will cope with higher interest rates. It is crucial they take advantage of this and prepare themselves now.”

At Enable in Bishop’s Stortford our IFA’s know that the bank Rate, which has remained at 0.5pc for more than six years really, is not likely to rise until well into 2016 maybe not until November next year according to the markets. But if you need help getting your house in order we will do our best to help.

Your home could be at risk if you don’t keep up your mortgage repayments.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE   

How much should we save for retirement?

Enable’s IFA's in Bishop's Stortford know that it is difficult to get through a day once you reach a certain age without thinking about how much you should save for retirement or to hear someone saying you’re not saving enough for retirement.  Unfortunately it is very difficult to give a clear and accurate answer to how much should we be saving it depends on a whole host of factors such as your age, income, circumstances, and what you want to do with your retirement at the end of the day.

Regardless of your personal circumstance and situation the key thing to remember is that anything saved to a pension is probably better than nothing and that, it’s never too late to start.  A good place to start looking at how much you might want to save to a pension is by looking at your age. One frequently cited rule of thumb is to half your age and then try and save this percentage of your salary each year. So for example, if you’re 30 you should try to save 15% of your earnings each year for your pension, if you’re 40, 20%, 50, 25% and so on.

These proportions of your salary can seem a tall order in the middle years especially if you’re still raising a family, paying for school fees, beginning to think about children’s weddings and supporting property buying. But it shouldn’t mean that you save nothing, a more sensible idea, might be to work out how much you can realistically afford each month. Calculate your monthly income and deduct essential expenses, remember to consider your debts. If you still owe money on expensive credit cards and loans it may be a sensible idea to pump any extra cash into paying down these debts before you start saving. It really is important to find a way to save alongside your outgoings.

If all the ins and outs seem a bit much being, really immediate and practical can help.  Have you ever thought of just trying to save a fiver a day? Savings can quickly grow this way.  However you want to save Enable’s IFA’s in Bishop’s Stortford are here to help.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE  

Understanding your pension

Enable’s IFA’s in Bishop’s Stortford are always reminding clients that their pensions are a tax-efficient way to save for retirement but there are a lot of rules surrounding ow much you can pay, what tax relief you'll get and how you come to access it when you retire. To understand the value of paying into a pension it can be good to understand more about how it all works.

On top of tax relief on contributions, money saved in a pension will largely accrue tax-free until you draw on it as income then you has to pay income tax on the income generated, unless of course it does not exceed your personal allowance. In 2014/15 the personal allowance for somebody born before 6 April 1938 is £10,660 or £10,500 for those born between 6 April 1938 and 6 April 1948. If you die before drawing any money from your pension it will also normally be passed on to your beneficiaries free of inheritance tax.

In addition to the annual allowance, which governs how much you can pay in each year, there is also a lifetime allowance. If the total value of your pensions exceeds this limit a tax charge will apply.
This allowance has been reducing over the years. In 2011 it stood at £1.8 million but fell to £1.5 million at the start of the 2012 tax year before falling again to £1.25 million at the start of the 2014 tax year. It has now been reduced further to £1 million.

Although the reductions have been made to target the wealthiest of individuals, experts have expressed concern that it’s not just extreme earners that will be caught out. If you want to make sure you are not caught out Enable’s IFAs are happy to look at where you are with your pension.


Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE  

House prices still on the up

If you are looking to move or want to get on the housing ladder Enable’s IFA’s in Bishops Stortford can take you through your options. It may be difficult to hear that the average house price could hit £300,000 by the end of the year, if price growth in the property market continues at its current pace, according to the Rightmove House Price Index.

Their research showed the average house price hit a new national high, the increase of £2,550 to £294,834 is the biggest September rise in 13 years. National average asking prices in September 2015 were £294,834 (+0.9%) and in August 2015 they were £292,284 (-0.8pc). However while the family-home market soared by about 1.2pc this month, prices in the first-time-buyer sector stalled, as home buyers struggled to afford prices which have already risen by around £10,000 in the last year.

Miles Shipside, of Rightmove, said: “High demand, lack of suitable supply, and increasingly stretched affordability are leading to some extremes in market forces in different sectors and parts of the country.” In the last six years, house building hit its lowest level since World War II and early indications already suggest next year’s housing completions are also likely to be slower. Meanwhile, efforts to improve the housing shortage are being hindered by a dearth of skilled industry workers and the current bureaucratic planning system, says a survey by Lloyds Bank.

If you are struggling to know what to do about your housing it can be helpful to talk through your options with experienced financial planners like Enable’s IFAs in Bishops Stortford.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE  

Mortgage rates are now at their lowest levels ever

Enable’s experienced IFA’s in Bishops Stortford know how important it is to get the right mortgage for you and getting the right mortgage at the right time can really make a difference. Currently according to data released by the Bank of England and Financial Conduct Authority (FCA) mortgage rates have fallen even further to reach their lowest level ever.

Despite many lenders having raised their rates, a number of providers have continued to cut rates in anticipation of the interest rate rise widely expected to come into play early next year. This has led to a further increase in gross advances with £52.2bn being loaned in Q2 – 15.1% higher than Q1.
But the average interest rate on gross advances fell from 2.99 to 2.83% between the first and second quarter, meaning rates now sit at their lowest level since Mortgage Lender and Administrator (MLAR) data was first collected eight years ago.

Head of lending Brian Murphy, said: '“Average mortgage rates fell to the lowest level seen since the MLAR series began in 2007. This improved affordability has caused a rush of demand from borrowers, and lenders are locked in fierce competition to win their business. However, with a rise in interest rates expected in early-2016, the general consensus is that these record low rates will only be around for a limited amount of time. “As a result, nearly four in five mortgage advances were at a fixed rate in Q2,” Murphy added. “There are growing numbers of borrowers opting for the security of regular mortgage payments and an extended window of paying rock-bottom rates.”'

If you want to talk through your mortgage options Enable’s IFA’s are happy to help.

Your home could be risk if you do not keep up your repayments.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE  

Which workers receive best life cover?

As part of any full financial planning picture Enable’s IFAs in Bishops Stortford recommend some insurance cover. According to some new research carried out by Punter Southall health and protection on its risk client database employees in the professional services sector receive the highest level of life assurance and income protection benefits.

 The research found that average life assurance for those in the professional services sector was £232,000, compared to £45,000 for those working in the retail leisure and hotel sectors who the research found received the least.  According to the Punter Southall Health and Protection research, as well as enjoying the best life assurance benefits those in the professional services sector also receive the best group income protection benefits and they have the highest average salary.

Punter Southall health and protection consultant Paul White said: “There are several reasons, based on actuarial risk calculations, why the cost of group life assurance for manufacturing employees is relatively expensive compared to their professional services contemporaries. One is that manufacturing plants tend to be in areas of the country where life expectancies are somewhat lower, in contrast to areas where professional services employees are more likely to live. Secondly, manufacturing jobs are more likely to involve work which may cause health problems, such as musculo-skeletal conditions; and even in some case fatalities through industrial accidents.”

Whatever your walk of life Enable’s experienced IFA’s can help you make sure you have the right levels of insurance protection to cover your life and income.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE   

Generation of women betrayed over state pension

Millions of older women in their late 50s and 60s, have been trapped by changes to the state pension system which has increased the age at which they can claim and has radical overhauled the way pay-outs are calculated. Many now won’t even be able to claim a state pension based on their husband’s records — despite being assured they would be able to when they chose to give up years of their life to support his career and raise a family.

In 1940, the state pension age for women was set at 60; for men, it was set at 65.  In 1995, the then Conservative government decided to equalise the retirement ages between the sexes. A law was passed that would raise the state pension age for women from 60 to 65 between 2010 and 2020.
In 2007, the then Labour government announced that the pension age for both men and women would rise to 66 between April 2024 and April 2026.  The state pension rises for women began to take effect in 2010, but then Chancellor George Osborne announced a much quicker schedule meaning the rise to 65 would happen between 2016 and 2018, and then both sexes’ pension age would rise to 66 by 2020.

These changes have been confusing and the current retirement age for women goes up every few weeks.  Women are also at the sharp end of more changes to come, as of April next year, everyone reaching state pension age will be able to claim a new flat rate pay-out of £148.40 a week. If you are worried about your pension Enable’s experienced IFA’s can help you look at your options.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE   

Which bank account: Have you got the best bank account?

However you choose to manage your financial planning you need at least one bank account, Enable’s IFAs in Bishop’s Stortford know that many of us manage several bank accounts, so are you getting the best from your account?

Shortly banking in Britain will be changing and when proposed improvements are announced – affecting anyone with a current account. The final report on the banking sector by the Competition and Markets Authority is not due until in April next year but early conclusions will be published soon along with suggestions for how current account banking might be improved.

The investigation into retail banking is likely to show that current accounts paying interest are becoming more popular, while packaged accounts with insurance add-ons are much less popular.
A standard way of charging for overdrafts may also be recommended, making it easier to compare the deals on offer.  There could also be a push towards portable current account numbers – a bit like taking the same mobile number to a new network provider when switching. It could be the end of ‘free’ banking – where no charges are applied provided you stay in credit with your bank.

Andrew Hagger, of financial research company MoneyComms, says: ‘I hope the report will recommend more than a little tinkering around the edges and will give more customers the confidence to switch. ‘For many people their current account is the bedrock on which all their finances depend and it is seen as a big deal to move it.’

Switching current accounts between providers keeps banks in competitive mode and increases choice, which works well for consumers. If you want to keep banks on their toes it might be worth looking around to see what bank account really is best for you.



Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE   

Using market turmoil to cut capital gains tax

Capital gains tax (CGT) is a problem for investors whose shares are held outside ISA’s, and many older savers fall into that category especially those who have inherited shares from a spouse. But one of the good things about rapidly falling share prices could be the chance to get rid of some of your capital gains tax liability.

Labour overhauled capital gains tax in 2008, when, it scrapped taper relief – which reduced the taxable gain according to the length you’d owned the asset – and, instead, introduced a flat 18pc tax on gains.  This would mean that a widow whose husband bought shares in the Eighties, for instance, would have to pay CGT on the full gain on those shares whenever she sells them so even in the current climate you can see how big the sums might be. the Tories subsequent main change to CGT has been to make it pay more, from the year 2010-11, the capital gains tax rate payable by higher- and additional-rate taxpayers jumped from 18pc to 28pc.

To limit your liability there is no shortcut to the hard work of monitoring your portfolio closely and every year crystallising gains up to the maximum CGT-free limit (£11,100 for this tax year). To achieve this when shares suddenly plunge in value you can sell more while remaining within your annual CGT allowance. This doesn’t mean you can’t continue to own the same investments: you could sell your directly held shares or funds then immediately repurchase them through your ISA at the same or similar price. Or, if you’re married, your spouse could repurchase them in his or her name. Enable’s IFA’s in Bishop’s Stortford can help you work on making the best of your CGT liability.



Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE   

What lies ahead for investors?

Enable’s IFA’s in Bishops Stortford know that passive or active investment in the stock market is always a roller-coaster ride and violent movements have to be expected from time to time. In recent weeks investors have experienced share prices lurching back and forth with some dramatic movements, both up and down, over fears of a slowing in growth in China, the world’s second-largest economy but several trusted measures of stock market valuation would be telling long-term investors to buy.

No one can say for certain what  will happen to the market over the next few years but certain valuation measures can be useful in estimating the expected long-term return of the stock market for those who buy at a particular levels. Research Affiliates, an American company specialising in long-term return predictions are forecasting annualised real returns –that means on top of inflation in excess of 5pc over the next decade.

Tom Becket, who buys funds for Psigma, said: “If one assumes that inflation will average 2.5pc over the longer term, then we would be forecasting a long-term real return of 4.5pc, very close to the long historical returns since 1969.”

Simon Murphy, a UK fund manager at Old Mutual, said, “When you look back at history there is a powerful relationship between historical earnings growth and the current market dividend yield. This does not mean it will be a smooth ride, far from it, but on a 10-year view I broadly agree with the assumptions made because UK shares are sensibly priced.”


Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
 • Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE   

Will the average pensioner have the income than they need' by 2020

Pensioners and full-time workers will see their living standards improve by 2020 thanks to the measures introduced in this year’s summer Budget according to new analysis by the Joseph Rowntree Foundation. Families with two parents in full-time work will also be better off by 2020 they say.  Pensioners will have £15 more than they need every week for a "decent standard of living" in 2020, the report found. 

The report – Will the 2015 Summer Budget improve living standards in 2020? – uses the Joseph Rowntree Foundation’s "minimum income standard" to track how the living standards of households will change by 2020. The minimum income standard is based on what consumers believe is, “necessary for a minimum standard of living for people to reasonably get by, such as the ability to run a car, have access to the internet and buy a modest birthday present.”

A Treasury spokeswoman said that while living standards are rising, there is more to be done to support families. “That's why we are introducing a new national living wage which the independent Office for Budget Responsibility. "Together with the further increases to the personal allowance next year, this will mean people will keep more of the money they earn by paying less income tax.” If you want to make sure your pension offers you a decent standard of living Enable’s IFAs in Bishops Stortford can help you plan for the future.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE    

Pocket money trends

The end of the summer holidays might find every parent wondering what’s going on with the amount of money the children seem to expect and be able to spend. Enable’s IFAs in Bishop’s Stortford note with interest that the average weekly pocket money has been growing faster than adult wages. Eight year-old children have apparently achieved faster "wage" growth than their parents, a 20-year survey of pocket money suggests, weekly allowances may have fallen in recent years, but children's £6.20-a-week pocket money has beaten adult wage growth since the survey began in 1987.

More than a thousand children are asked to reveal their allowances by the Halifax bank each year, it has carried out the research since 1987. Most of the children surveyed, aged between 8 and 15, said they had to complete household chores before they got their allowances but that figure has not been growing.  Pocket money however is still 5p lower than it was a year ago, and 30p lower per week than in 2013. Some say this means that austerity is affecting children's wages, as well as their parents'. Jasmine Birtles, of Moneymagpie.co.uk, said: "I am rather pleased the pocket money index has fallen. "For many years it significantly outperformed inflation, and outperformed everything, even after the crash in 2008. I hope a bit of reality has finally been injected into pocket money."

Enable’s IFAs in Bishop’s Stortford believe that children are never too young to learn about the benefits of earning their pocket money and the benefits of learning to save early.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE   

Remortgaging?

Enable’s IFA’s in Bishops Stortford have seen that more and more homeowners are borrowing record sums against their properties as ultra-low interest rates and rising house prices mean they can afford to take more money out without overstretching the monthly mortgage repayments.

According to leading brokerage the Mortgage Advice Bureau this combination has pushed the average remortgage value up to £170,094, a rise of 5pc in 2015 so far. The average loan to value ratio on those loans has also risen, from 54.9pc at the start of the year to 56.5pc in July.  Alongside this the average value of a home where the owners are remortgaging has gone up from £296,308 in January to £300,898 in July.

Many property owners have been understandably keen to lock into low interest rates by remortgaging before fears of the Bank of England increasing the base rate, a move which was expected to happen in the next 12 months. Banks approved more remortgage loans in July than at any other point in the past four years, with 24,400 home owners getting a new loan up 29pc on the year, according to the British Bankers’ Association.

The average five-year fixed rate loan is also down. “Mortgage rates have been tumbling since the beginning of the year, and many borrowers have jumped at the chance to secure a low rate deal. However, a few high street lenders increased their pricing recently – suggesting we may fast be approaching the bottom of the curve,” said the Mortgage Advice Bureau’s Brian Murphy.  If you are looking to remortgage Enable’s IFAs in Bishop's Stortford can help.

Your home could be at risk if you do not keep up your mortgage repayments. 


Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE  

Is it a bear or a bull?

Does the sharp fall in the stock market mark the end of the long bull run or is it just a blip? Stock markets never really go up in a straight line, but even Enables’ IFAs in Bishop’s Stortford were surprised by the suddenness of the setbacks that shares around the world endured this August after concerns over slowing growth in China. But many of British leading fund managers see it as a blip and are fairly optimistic.

Gary Potter, who buys funds for F&C Investments, described the global stock market rout as a “correction rather the start of a bear market”. “Not a great deal has changed of late other than sentiment,” Richard Buxton, who manages the Old Mutual UK Alpha fund, described the stock market falls over the past 10 days as “indiscriminate”. "Markets are caught up in a vortex of fear between China’s growth falling away and a possible US interest rate rise,” Mr Buxton said.

“These fears are understandable but hardly new. China has been weakening for months. It is now front page news and creating a classic spiral reaction.” Mr Buxton also said the slump – which has seen the FTSE 100 fall by 8pc this month –“had created the best buying opportunity he had seen for several years.”

“A bear market normally requires an economic recession and for the moment that seems unlikely in developed markets. It does appear that we are in a period of heightened volatility as investors seek assurance that central bank policies will be effective in supporting growth.” If you want to review your investments Enable’s IFA’s are always happy to help.

Issued by: Enable Independent Financial Life Planners 
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE