Experienced Independent Financial Advisors like Enable always explain that most investments are generally for the long term, so the current short-term fluctuations should not worry people too much. People who invest directly into the stock market can log into their account and see how their valuation might have dropped but is it really worth the stress with daily, and weekly fluctuations?
Most people only get an annual update on their investments and keep their money in for many years - either for their retirement or to hand down in inheritance. Looking too often is not necessarily a good thing , "This could lead to some panic. People do not pay so much attention when values go up," says Anna Sofat, of financial services company Addidi.
"They should not risk selling out at a time that is not good for them."
Andrew Gadd, head of research at the independent financial advisers, the Lighthouse Group, says: "People should not be panicked out of the market ."Even if you are about to retire there are things you can do, granted the current situation is probably most acute for those with personal pension funds and on the cusp of retirement. They will be looking to pull money out of the stock market in looking to buy an annuity - a pension income for the rest of their lives. At Enable our experienced IFA’s never think it’s a good time to panic but it is always a good time to talk through your options.
Monday, 20 February 2012
Wednesday, 15 February 2012
Volatility in the markets affects us all
We have always know it…..
All those red numbers on stock market boards and ups and downs of the FTSE100 may appear to be a strange and mysterious mix of data to many and we often think it has little to do with us especially when in the third quarter of 2011, the FTSE 100 index in the UK recorded its worst quarterly performance since the same three months in 2002, and the fourth worst quarterly performance since it was launched in 1984 so we really don’t want to think about it.
Experienced financial advisors at Enable know that it has always been the case that investments can go down as well as up. It is unfortunate that this volatility can affect anyone with a pension, those considering retirement, savers with Individual Savings Accounts (Isas), and even money set aside by families for the cost of children's university education..Millions of people in the UK also have money put away in a stocks and shares Isa. A total of £108bn is invested in these Isas in the UK.
It has always been the case that these investments can go down as well as up in value, and anyone hoping to cash some of this in because they are financially stretched will be most likely to take a hit.
But at Enable we know that most investment are for the long term and so these short-term fluctuations should not worry people too much. If you want to talk through your investments with an IFA Enable are here to reassure and invest.
All those red numbers on stock market boards and ups and downs of the FTSE100 may appear to be a strange and mysterious mix of data to many and we often think it has little to do with us especially when in the third quarter of 2011, the FTSE 100 index in the UK recorded its worst quarterly performance since the same three months in 2002, and the fourth worst quarterly performance since it was launched in 1984 so we really don’t want to think about it.
Experienced financial advisors at Enable know that it has always been the case that investments can go down as well as up. It is unfortunate that this volatility can affect anyone with a pension, those considering retirement, savers with Individual Savings Accounts (Isas), and even money set aside by families for the cost of children's university education..Millions of people in the UK also have money put away in a stocks and shares Isa. A total of £108bn is invested in these Isas in the UK.
It has always been the case that these investments can go down as well as up in value, and anyone hoping to cash some of this in because they are financially stretched will be most likely to take a hit.
But at Enable we know that most investment are for the long term and so these short-term fluctuations should not worry people too much. If you want to talk through your investments with an IFA Enable are here to reassure and invest.
Making sure your assets are well spread...
It was interesting to see in the Cambridgeshire news that “The Cambridge ‘Bank’ is at last properly open for business and offering up to 5% return on your cash. It is called The Cambridgeshire Provident Society and is accepting applications for investment in its ‘Sunshine Shares’, which are all about solar power.
CPS is a mutual, rather like the old building societies, according to prime mover Peter Dawe, who created the country’s first internet service provider and became a multi-millionaire in the process. “Being a mutual means that all profits will be donated to local charities nominated by our shareholders,” he said. “Our hope is that there will be hundreds of thousands of pounds in profits to distribute in a few years.” “We believe our launch interest rate of 3% is competitive with commercial offerings, and where investors benefit from EIS tax relief, the rate of return can be equivalent to over 5%. Our aim is to raise £20m in this fund within a year.”
“Our hope is to redefine how and where people put their savings. Once again it looks like Cambridge will be the pioneers in ‘The New Capitalism’, even if it is actually 19th century ‘Mutualism’.”
As Independent Financial Advisors we at Enable like to see a full complement of investments in anyone’s portfolio. It is always good to see a local business having big ideas and energy will be vital to all of our future well being and viability.
CPS is a mutual, rather like the old building societies, according to prime mover Peter Dawe, who created the country’s first internet service provider and became a multi-millionaire in the process. “Being a mutual means that all profits will be donated to local charities nominated by our shareholders,” he said. “Our hope is that there will be hundreds of thousands of pounds in profits to distribute in a few years.” “We believe our launch interest rate of 3% is competitive with commercial offerings, and where investors benefit from EIS tax relief, the rate of return can be equivalent to over 5%. Our aim is to raise £20m in this fund within a year.”
“Our hope is to redefine how and where people put their savings. Once again it looks like Cambridge will be the pioneers in ‘The New Capitalism’, even if it is actually 19th century ‘Mutualism’.”
As Independent Financial Advisors we at Enable like to see a full complement of investments in anyone’s portfolio. It is always good to see a local business having big ideas and energy will be vital to all of our future well being and viability.
Did you make any financial resolutions for 2012?
With the economic situation still not looking too bright it is probably wise to make some plans to try and improve your finances, remember the help of an experienced financial advisors like those at Enable could come in handy, even if you are making some of the following adjustments.
A YouGov survey found that the top 10 financial resolutions for 2012 were:
1. 56 per cent of people are planning to cut back on their spending, particularly women
2. Over a third (37 per cent) are going to save more money each month
3. Similarly, 36 per cent of people hope to reduce their debts
4. A small percentage (19 per cent) are going to look for a better paid job to boost their income
5. For 12 per cent of people, ensuring they have the best insurance cover available is a priority
6. While 12 per cent will be cutting down on insurance costs
7. Just over a tenth of people are keen to shop around for financial providers so they will pay less in charges (11 per cent)
8. And under 10 per cent are going to focus on starting or upping their pension contributions (9 per cent)
9. Eight per cent are going to take more control over investment decisions
10. And 6 per cent will be switching their bank account
Paying off the mortgage, supporting elderly parents financially, moving house and taking out life and income protection insurance all got votes but didn’t quite make the top 10.
IFA’s at Enable are experienced at helping people make more that resolutions.
A YouGov survey found that the top 10 financial resolutions for 2012 were:
1. 56 per cent of people are planning to cut back on their spending, particularly women
2. Over a third (37 per cent) are going to save more money each month
3. Similarly, 36 per cent of people hope to reduce their debts
4. A small percentage (19 per cent) are going to look for a better paid job to boost their income
5. For 12 per cent of people, ensuring they have the best insurance cover available is a priority
6. While 12 per cent will be cutting down on insurance costs
7. Just over a tenth of people are keen to shop around for financial providers so they will pay less in charges (11 per cent)
8. And under 10 per cent are going to focus on starting or upping their pension contributions (9 per cent)
9. Eight per cent are going to take more control over investment decisions
10. And 6 per cent will be switching their bank account
Paying off the mortgage, supporting elderly parents financially, moving house and taking out life and income protection insurance all got votes but didn’t quite make the top 10.
IFA’s at Enable are experienced at helping people make more that resolutions.
Wednesday, 8 February 2012
What to do with your savings
Some campaigning groups reckon news of a savings gulf between Britain and stronger world economies comes after analysts at the National Institute of Economic and Social Research warned that the UK is in the midst of recession again. In stark contrast, China's economy clocked up 8.9 per cent growth in the final three months of 2011. Germany, Europe's largest economy, grew 3 per cent last year. It is expected to grow 0.7 per cent in 2012 in spite of the Eurozone debt crisis plaguing the continent.
Rose, of Save Our Savers, says: 'For three years savers have been sacrificed to prop up people who have borrowed too much money - this sort of short-term political expediency by almost completely blind politicians is putting at risk everyone in the country. 'He says MPs and power-brokers at the Bank of England, which has held rates at an all-time low 0.5 per cent since 2009, must do more to stimulate saving in Britain. This might include suspending income tax on savings, boosting the tax-free savings limit, or hiking rates.
Savers can put up to £5,340 a year into an Isa and earn interest tax-free. The best return is 4.5 per cent from Bank of Ireland. But this still doesn't keep the cost of living, which is rising at 4.8 per cent a year. The effect is to eat away the value of cash over time. If you are worried about the state of your economic affairs Enable IFA's of Bishop’s Stortford can help you work through your options.
Rose, of Save Our Savers, says: 'For three years savers have been sacrificed to prop up people who have borrowed too much money - this sort of short-term political expediency by almost completely blind politicians is putting at risk everyone in the country. 'He says MPs and power-brokers at the Bank of England, which has held rates at an all-time low 0.5 per cent since 2009, must do more to stimulate saving in Britain. This might include suspending income tax on savings, boosting the tax-free savings limit, or hiking rates.
Savers can put up to £5,340 a year into an Isa and earn interest tax-free. The best return is 4.5 per cent from Bank of Ireland. But this still doesn't keep the cost of living, which is rising at 4.8 per cent a year. The effect is to eat away the value of cash over time. If you are worried about the state of your economic affairs Enable IFA's of Bishop’s Stortford can help you work through your options.
Chinese Savers to beat Europe hands down
Greg Coughlan, head of savings at Lloyds, says: 'Despite significantly higher income levels, today's British and German households are both being beaten in the savings stakes by urban Chinese households.' But he adds that China's huge saving rate largely reflects the 'lack of the social safety net' in the form of state pensions and welfare benefits. The average Chinese has the equivalent of £19,000 put aside compared to £5,000 in the UK, a recent study showed. The typical German household has the equivalent of £8,650 - 70 per cent more than in the UK.
It is clear that in the UK families are being squeezed by the soaring cost of living, and have dipped into their pots to make ends meet. The average Briton's nest egg has shed £600 or 11 per cent over the past year, the research showed. German saving also suffered, falling 5 per cent.
The UK's savings crisis has left nine in ten adults 'stone broke' with no form of saving for the future whatsoever, Lloyds says. This could leave millions of people facing financial ruin if they lose their jobs. The Chartered Insurance Institute has estimated that Britons are collectively trillions of pounds short of a retiring in comfort due to chronic under-saving in pensions and investments. Enable experienced Independent Financial Advisors of Bishop’s Stortford know how important savings can be to future planning and are always happy to talk though individual savers needs.
It is clear that in the UK families are being squeezed by the soaring cost of living, and have dipped into their pots to make ends meet. The average Briton's nest egg has shed £600 or 11 per cent over the past year, the research showed. German saving also suffered, falling 5 per cent.
The UK's savings crisis has left nine in ten adults 'stone broke' with no form of saving for the future whatsoever, Lloyds says. This could leave millions of people facing financial ruin if they lose their jobs. The Chartered Insurance Institute has estimated that Britons are collectively trillions of pounds short of a retiring in comfort due to chronic under-saving in pensions and investments. Enable experienced Independent Financial Advisors of Bishop’s Stortford know how important savings can be to future planning and are always happy to talk though individual savers needs.
British savers in the doldrums
IFA’s Enable of Bishop’s Stortford have noticed that there has been much in the news about British savers. Many campaign groups have been slamming 'blind' politicians over the damaging low interest rates and claim that the UK saving crisis has been laid bare recently by a report showing that German and Chinese workers are putting away a vastly greater chunk of their monthly pay-packet.
The slice of income UK workers put into savings, investments or pensions has fallen to just 7 per cent, according to Bank of England figures. In China it is an enormous 47 per cent and in Germany, Europe's strongest economy, workers siphon off 10 per cent - almost half as much again as UK savers.
The gulf between Britain and China's savings ratios is now at an all-time high and may have immediately called on MPs to 'wake up' to the plight of British savers, who have been battered by record low rates since 2009. Simon Rose, of Save Our Savers, said a higher level of saving in the world's stronger economies is no coincidence. 'Can't our politicians wake up to the fact that most successful countries in the world have a high savings ratio? There is a link and they ignore it at their peril.' He says savers, particularly the elderly who rely on nest eggs for income, have been unfairly exploited since the Bank of England cut rates to a record low 0.5 per cent in 2009 in a bid to prop up struggling borrowers.
Enable can see why savers feel so hard done by so it is important to make every penny work for you our Independent Financial advisors are always happy to talk it through.
The slice of income UK workers put into savings, investments or pensions has fallen to just 7 per cent, according to Bank of England figures. In China it is an enormous 47 per cent and in Germany, Europe's strongest economy, workers siphon off 10 per cent - almost half as much again as UK savers.
The gulf between Britain and China's savings ratios is now at an all-time high and may have immediately called on MPs to 'wake up' to the plight of British savers, who have been battered by record low rates since 2009. Simon Rose, of Save Our Savers, said a higher level of saving in the world's stronger economies is no coincidence. 'Can't our politicians wake up to the fact that most successful countries in the world have a high savings ratio? There is a link and they ignore it at their peril.' He says savers, particularly the elderly who rely on nest eggs for income, have been unfairly exploited since the Bank of England cut rates to a record low 0.5 per cent in 2009 in a bid to prop up struggling borrowers.
Enable can see why savers feel so hard done by so it is important to make every penny work for you our Independent Financial advisors are always happy to talk it through.
Subscribe to:
Posts (Atom)