2022 has been a bit of a stinker. So much so, ‘permacrisis’ has been crowned word of the year by Collins Dictionary.
It’s no surprise, therefore, that clients have been reaching out to us for reassurance that their life savings are not disappearing down an economic black hole.
As good news still seems remarkably thin on the ground, I thought it would be useful to answer some of the questions we are being asked most frequently.
I am considering retiring. Given the state of world affairs at the moment, is it the right time?
Preparing for retirement is a detailed process and there are many moving parts. Ultimately, if the headlines in your life haven’t changed, neither should your plans.
When we undergo the professional financial planning process, we establish your goals and build an achievable strategy to get you there. This is essential before any big decisions are made.
If your plan is in place and it looks like you are on track for a comfortable retirement, it doesn’t matter if the world has gone mad or not!
The markets look low at the moment, is it a good time to invest?
Successful investing is not about trying to enter or exit the markets at the right time, it is the years we spend in the markets that matters.
Research shows people who try to predict market swings generally get it wrong more often than they succeed.
We use cashflow forecasting tools that include variable investment conditions. They demonstrate how markets will fluctuate and how we can protect your finances from this volatility.
My investments have dropped in value with the markets. Should I sell them?
There’s a lot of noise currently about the state of the markets and it is easy to be overwhelmed by the seemingly endless bad news. But, as I said earlier, if the headlines in your life haven’t changed, neither should your plan.
The question you should be asking yourself is ‘am I still on target?’ because this focuses on your objectives and how they have been set.
We establish our clients’ objectives and an achievable financial plan using variable levels of returns in both good and bad years. We also outline at the outset of our relationship what would happen in falling markets and how comfortable you would be during this period. This helps us develop an investment solution that meets your requirements.
Market movement – up and down – is not new and it will inevitably continue. This is why our plans are not built on one year’s performance. Our goal is to ensure your returns over the long term remain on track.
We also advocate having a cash reserve, as this enables you to weather some of the market volatility and the availability of funds is something we check during the planning process.
If you would like to speak to us about your pensions and investments, don’t hesitate to contact Belmayne on (01246) 289191 or email: enquiries@belmayne-ifa.com
