OK, so the General Election didn’t go according to plan if you were the Prime Minister and were forced to look to the DUP for support. And whilst Brexit negotiations are finally progressing, it seems to be slow going with no one 100% sure what the final outcome will be for the UK. And only last week, Bank of England workers announced a strike for the first time in 50 years amid a pay row. So with change, uncertainty and instability being the norm, what can ordinary people do to ride out any volatility when it comes to their personal finances?
Economists continue to be worried about 2017 and beyond and the current media headlines are not helping to calm people who may be worried about their investments, mortgages, savings and pensions:
- Is this tax loophole affecting your savings?
- Bank of England tightens mortgage rules
- More buy-to-let rules to hit landlords in September
- Are you prepared for interest rate rises?
- Lenders told to be vigilant over loans
- UK factory growth hits 3 month low
- Rise in cyber-crime attacks
But when it comes to the returns from people’s savings and investments, it is often the older generation who are most worried or even confused by the different options available. So what can we do as financial planners to allay their fears?
Nicola Watts from Jane Smith Financial Planning explains. “Whatever happens in the coming years, it is sensible to ensure that you have your finances in order and seek specialist advice on pensions, inheritance and retirement planning. We also recommend that people avoid panicking and any knee-jerk reactions. In our experience, investors who are able to ride out any short-term volatility are usually rewarded in the longer term.”
Nicola continues. “With the economic climate still uncertain, we generally advise our clients to be cool headed, pay down debt, save where relevant and invest wisely in things that they understand. Essentially having a well-diversified long term portfolio is key; as is not getting too hung up on headlines, predictions and scare-mongering.”
Nicola concludes. “At Jane Smith Financial Planning, we are known for offering a highly personal approach to all our clients, which helps them to focus on their financial future. We’re friendly and approachable, while at the same time specialists at offering a professional and knowledgeable financial planning service. We work in partnership with clients to help them set goals and, wherever possible, achieve them!”