Our financial advisers answer a few burning questions
In this blog we address some of the questions investors are asking across the world right now.
As with any correction, crash or global event impacting the markets, there are no black and white answers.
Who knows where the ceiling is after the recovery.
Who knows, where the bottom is.
Time will tell.
But one thing is for certain. Panic and fear will only drive poor decisions. Investing and all associated decisions, require head not heart.
We fully appreciate this pandemic is affecting people in so many ways, personally, financially and emotionally. The content in this blog doesn’t constitute investment advice. However, it is a means to provide some information and food for thought from our trusted team of experts.
In a recent online Q & A by The Telegraph, people were given the opportunity to ask questions and have them answered by experts.
Here is our input into the conversation.
Is my cash in the bank safe?
Currently The Bank of England (BoE) has made funding available to help all banks and the level of risky debt lent out by banks is therefore lower.
This isn’t the only reason your cash is safe and in good hands in the banking system.
It’s important to remember that up £85,000 of your savings and money deposited in a bank or building society is guarded by the Financial Services Compensation Scheme (FSCS). This applies even in the event of a bank collapsing and ceasing to trade.
Should I stop investing while markets fall?
Whilst we can only give investment advice on a case by case basis after reviewing a clients’ aims, attitude to risk and long term goals, we can suggest the following.
Investing in a falling market means you are picking up shares at a cheaper price than they were previously.
If markets fall further, again you are investing in stocks at a lower price thus maximising potential gains when the market turns.
We can offer no guarantee when this will be, but history suggests markets will rally and new peaks will occur in the future.
The impact on the investor when they do?
Substantial capital growth and return on investment.
Should I change and review my pension?
We can’t recommend you change your pension but we can certainly suggest now is a time to be reviewing it. Questions you should be considering are:
- Has your desired retirement age changed since you last reviewed your pension?
- What is your current attitude to risk?
- Where is your pension currently invested – Asia, Europe, America?
- Which market sectors are you most exposed to? How have they been impacted by the current crises
- Are you getting the right information and support from your pensions adviser?
I’m nearing retirement, what should I do?
Good question. But one that can’t be answered without answering the questions above and considering the following.
- Has the recent market decline significantly impacted the income you’ll derive from your pension?
- What other investments do you have that will be contributing towards your retirement plan?
- Have you adopted an effective strategy for protecting your assets and estate should you need to work for longer and fall ill?
If you are currently, looking at your savings, investments and pensions and concerned about the impact Covid-19 is having, why not take advantage of our free, no obligation pension review?
One of our skilled pension experts, is one hand to guide you through the complexities you may be facing.
Looking for financial advice during the COVID-19 pandemic?
Our team of trusted, experienced financial advisers are here to help.