Financial advice
These are challenging times for global stock markets, so it may be time to review your arrangements
Recent market volatility: What's the impact on your financial plans?
Global markets have had a torrid start to the year, suffering some of their most dramatic falls since the financial crisis of 2008. As markets, central banks and governments all grapple with both the human and economic cost of the coronavirus, panic has been unavoidable. This has also made for a challenging backdrop for savers and investors. And you might be wondering what it means for your financial plans.
Can you afford to ignore the long-term?
As challenging as everything might seem at the moment, it's still really important to think beyond the here and now to your long-term financial future.
If you’ve not reviewed your plans recently, it’s important to think about doing it now so:
The recent cut to Bank of England base rate makes it even harder to grow your money held in savings accounts. For goals five or more years away, there might be other options
Recent market volatility will have inevitably impacted on any investments you have. If you’re not sure how they’re performing, it’s a good idea to ask a financial adviser to review them
If you have financial goals that are starting to appear on the horizon, it’s even more important to have a review. What you’re doing or not doing right now could define your ability to achieve your objectives
Investing is a long-term commitment. Markets will invariably experience short-term dips, but history shows that, in the long-term, they should recover. Generally, the longer you’re able to leave your investment, the higher the potential return. But what was once the best place to invest for your needs might not always remain the case.
If you haven’t reviewed your plans recently, there’s a chance you might not be on course to achieve them.
Finding a balanced approach
Look at the market impact of the coronavirus. It has been a challenging time for shares, which have fallen sharply around the world. But other asset classes – like bonds – actually did well from the market volatility.
That’s why a balanced investment approach could be the answer.
It means investing your money in a range of different asset classes, not just shares. And that can reduce the amount of risk you’re taking. Because when one asset class is struggling – like shares – other asset classes could be producing higher returns to balance it out.
A balanced investment strategy could potentially result in smoother returns in the long run.
A financial adviser can help you to set up your investments in a balanced way, providing it’s right for your circumstances.
New tax year – a great time to have a review
Mail Finance chose to partner with Skipton Building Society to help readers like you make strong plans. It has advisers based all over the UK, who can review your current arrangements and how they measure up to achieving your goals.
If you’re in a good place with your plans, your adviser will tell you. It’s part of Skipton’s honest, no pressure approach.
However, if Skipton feels you could be making more from your money, it can research the market and provide you with tailored recommendations. And with the new tax year having just started, your adviser can also help you find out if you could be paying less tax.
There’s no upfront fee to pay, so you can be confident of being in a position to make informed choices.