Are better days ahead?

Are better days ahead?

by | Feb 21, 2021 | Social Media

ARE BETTER DAYS AHEAD?

23

February, 2021

Lockdown
Cheerful

Never has the need to search for light seemed stronger than it has in the past year.  Unexpectedly, the world as we knew it plunged into disarray; everyday news was filled with economic markets crashes, business collapses and society as we know it, has become a distant memory. It feels we have been living a through a time of great upheaval.

However, it’s not been all doom and gloom. Following the Prime Minister news on Monday, we now seem to be finding our way out of the darkness. Perhaps we will soon be following in history’s footsteps; because despite the many wars, and previous financial crisis’, over the last 20 years, the stock market achieved a positive return in 15 of those years.  Over time, our economies regrow, companies become profitable again, employees become more efficient, people more productive, populations build back up, and technology leads to new innovations.

Perhaps prematurely, we decided to reflect on things that we have managed to enjoy during the lockdowns. We wanted to bring light and how we can all grow out of these dark days. These are some of our reasons to be cheerful, hopefully they give you some hope for this last little push!

“My friends and I started creating a Spotify Playlist for us all to enjoy. We take it in turns each day to suggest a song category and we add up to three songs each. We have had great fun coming up with interesting categories and reliving some classic songs and memories! It has given us such a great opportunity to chat about something every day, and provided us with something to enjoy together, even while we are apart. The playlist is now over 24 hours long, I wonder how long we can get it!”
– ALICE

I am used to seeing my friends all the time, so having to limit that has been tough for me but with these limits in place, I have started to really appreciate the people in my life and spending what time I can with them. Just going for a walk with a friend has broken up my days; I’ve been able to get my steps in and have a good chat about everything! It has kept me going through these tough times and I hope we can spend more time like this with people in the future (as well as some drinks in the pub!)
– SOPHIE

Perhaps ironically, I have found I have spoken to my friends and family a lot more during these lockdowns than in normal times. Taking away the possibility that you will be able to see them at any time seems to have upped people’s communication which has been so important! I’ve received more spontaneous phone calls from my loved ones which have really brightened up my days. I hope we can keep communicating like this once the lockdown lifts.
– SAM

“Working from home has allowed me to take more breaks to get out and enjoy the fresh air”

Although it’s been hard work, being able to watch my children learn from home has been so rewarding. In the “old normal”, my commute and working days were long and my time with my family was always limited, however having them around more and being able to see them during a working day has been great. Working from home has allowed me to take more breaks to get out and enjoy the fresh air as well, it has really helped even out my work/life balance.
– STEVE

I have enjoyed taking in the simpler things of life at a bit of a slower pace. Normally we don’t make the time to just go for a walk and enjoy our surroundings. I’ve also just moved into a new home, so I have been enjoying having a garden to look out onto between meetings!
– KIERAN

I’ve used music so much to escape and break up the daily routine . 
I’ve been exploring different genres and songs to what I would normally listen to just to mix up each day and it’s given me the boost I need to get through working from home!
– ROSS

In a bid to keep ourselves entertained, my Mum and I started cocktail making evenings on a weekend, so that has been great fun. I’ve also managed to save money during lockdown which has been a great bonus, and now it is staying lighter after 5pm, it’s starting to feel like there’s light at the end of the tunnel!
– JULIA

So, let us keep our fingers crossed that the weather continues to improve, the spread of COVID-19 continues to slow, vaccines keep working and that hospitals may soon be able to run smoothly once more. Perhaps we will soon discover something resembling normal, as we start to repair our economy and our society.

In terms of investing, 2020 was not the first time that stocks have slumped, and it won’t be the last time it happens in our lifetime. Remember, for the last 20 years, the stock market has been one of the best places for the longer-term investor to build their wealth, and history would suggest that it will usually recover.

We must remember what history tells us: lockdown too shall pass.

PROVIDING NEWS AND VIEWS TO SUIT ALL NEEDS

This Blog is published and provided for informational purposes only. The information in the Blog constitutes the author’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular investment strategy is suitable for any specific person.

Lockdown Lessons: The Chance To Learn About Money

Lockdown Lessons: The Chance To Learn About Money

by | Jan 27, 2021 | Education, Social Media

LOCKDOWN LESSONS: THE CHANCE TO LEARN ABOUT MONEY

27

January, 2021

Money Management
Lockdown Lessons
Education

Lockdown home-schooling may be testing the patience of many parents around the UK, however in terms of resources, things have developed since the start of the coronavirus pandemic.

Teachers are now presenting online lessons and there has been an increase of learning supplies made available. And it is not just the traditional subjects being taught digitally – there is a host of material on personal finances available suitable for children of all ages.

If you find yourself struggling for inspiration, this period of home schooling could be the perfect opportunity to start introducing your kids to the basic concepts of money, so they not only are broadening their curriculum, but also create some great life habits.

A lot of past generations were not taught the basic financial concepts, and therefore have a hard lesson to learn once they begin earning for themselves. However, this time at home could allow parents the opportunity to change this for younger generations.

Teaching them new things like the true value of money could be a real benefit for their future lifestyle. Whether you are looking to introduce some formal lessons under lockdown, shake up your children’s savings or build in learning about money more subtly into everyday family life, here is a wealth of ideas to inspire parents.

First things first: Bring up the topic.

57% of parents agree they are the single biggest influence on developing their children’s money management skills. However, 58% admit they find it hard to talk to their child about money matters*. Being open about money as an everyday conversation is key to helping them recognise it as a part of life. Everyday examples such as why you are turning the lights off or what they could do with the pocket money they just received are great ways to trigger a conversation.

Next up, show them the money.

Nowadays cash is a bit of an unknown entity, what with the introduction of contactless cards and online bookings.  However, contactless suggests the concept of never-ending funds, so having notes as a demonstration is a great visualisation for your kids to understand the concept of budgeting. For younger children, you could use marbles as a concept of earning and how they can budget going forward.

Lockdown is forcing many people to pay closer attention to their household budgets

Introduce them to budgeting

Lockdown is forcing many people to pay closer attention to their household budgets anyway, so why not make this into a real life maths lesson. Building a budget encourage children to take a better look at their spending. Trips to supermarkets can start to build this way of thinking into their mind; setting them a challenge of buying ingredients for a meal for example could be a good activity to keep them busy and get them thinking about what they spend.

What about setting a pocket money routine?

We are still unclear as to how long lockdown teaching and this “new normal” will continue, and although they may not be able to get out and about to spend their pennies, it could be a perfect opportunity to start setting up a pocket money system if you have not already.  Kids may have more time to earn extra cash, and you may have more time to introduce a routine.  The time in could also help to learn how to save their money, they may even thank you for it in the long run! There is no rule on how much to give, it’s really dependent on your own budgets and what you want their money to be able to cover.

Maybe they have some goals to save for?

Starting goals is a great way to help kids understand saving.  The idea of waiting for a child is a little hard to grasp, so discussing what they’d really like to be able to buy and setting that as a goal is a great idea. It’s not only a great saving technique but introduces interest and discourages the instant gratification nature that society may be presenting.

Good old-fashioned Chores.

For generations, parents have been rewarding their children for chores.  This is still the case, with a quarter of parents making their offspring learn the value and reward of hard work. With all the extra time they have on their hands, there are sure to be plenty of little jobs they can help out with, or even bigger jobs such as washing the car, that provide a sense of achievement as well as a “payslip” at the end of it.

*https://www.moneyadviceservice.org.uk/en/corporate/uk-parents-struggling-to-talk-to-their-children-about-money
**data from https://www.roostermoney.com/gb/

PROVIDING NEWS AND VIEWS TO SUIT ALL NEEDS

This Blog is published and provided for informational purposes only. The information in the Blog constitutes the author’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular investment strategy is suitable for any specific person.

COVID and The Saving Habit

COVID and The Saving Habit

by | Jan 25, 2021 | Conversations, General Investing, Planning, Social Media

COVID AND THE SAVING HABIT

25

JANUARY, 2021

Savings
Financial Markets

For the most part of a year now, we have been on “lockdown”; staying at home in a bid to help reduce the spread of coronavirus and to protect the vital NHS. 

As well as these obvious positives, staying at home has also had a huge effect on our finances and our relationship with them. Of course, a huge number of people have felt, and continue to feel, the devastating impact of the pandemic as they simply battle to keep themselves and their businesses afloat on little to no funding or income. For those who have been fortunate enough to maintain a steady income stream during this time, staying at home may have led to increased saving.

The combination of falling household spending and possible future financial concern has, in some instances, created a greater willingness to save money.

When the pandemic began, we mentioned that around 12 million adults do not have any form of saving or investing account*, while almost half of people who do save £100 or less a month. Almost a quarter of people have no savings at all*. This may in some places, still be the case, however, it seems that some have adopted savings habits throughout the pandemic that they are keen to continue. (1)

The closure of leisure, hospitality and retail sectors is limiting recreational spending, and leaving some households with an increase in spare disposable income. This is turn has created a “savings buffer”, helping individuals and households feel protected of the risk of another economic downturn.

Currently, the want for greater visibility of finances and savings is bigger than ever. Potentially, many savers feel this will ensure a quicker route to protecting themselves against any future shocks the pandemic may bring. (2)

As a knock on, the interest in big returns on savings has dropped, with many simply looking for increased engagement with their finances. Therefore, a more cautious and flexible approach to saving and choosing where to place any savings or investments, seems to have been adopted. (3)

It is key especially in unsettled market periods, to set clear and achievable financial goals.

If unfortunately, you are someone whose income has been affected by enforced time off, you may still be able to take steps to potentially make it easier to save once this has passed.

is key especially in unsettled market periods, to set clear and achievable financial goals. Reviewing expenditure and income will help give an idea of spending and saving habits and allow you to build a plan on how to save more without negatively impacting your living standards.

It also helps, if possible, to look further than tomorrow and to set some long-term financial goals.  Do you have a retirement fund started? Are you able to start contributing to that monthly? If you can, accessing regulated professional financial advice will provide you with expert guidance to confidently plan your financial future.

If you are in a fortunate position where your income has not yet changed and you have noticed your spending reduce during this period of social distancing, maybe it’s time to start considering investing, and getting that money to work for your future.

We are incredibly aware that financially, this is a tough time for many and we want to be able to support as best we can. We hope you are all staying safe.

Source data:
[1] Research of 2,000 UK consumers conducted on behalf of Aviva by Censuswide, August 2020. Censuswide is a member of ESOMAR – a global association and voice of the data, research and insights industry. Censuswide comply with the MRS code of conduct based on the ESOMAR principles.

[2] https://www.bankofengland.co.uk/statistics/tables – Table A4.1

[3] https://www.bankofengland.co.uk/statistics/tables – Table A5.6

PROVIDING NEWS AND VIEWS TO SUIT ALL NEEDS

This Blog is published and provided for informational purposes only. The information in the Blog constitutes the author’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular investment strategy is suitable for any specific person.

Vital Family Support Comes from Over 50’s

Vital Family Support Comes from Over 50’s

by | Dec 7, 2020 | Education, General Investing, Planning, Social Media

VITAL FAMILY SUPPORT COMES FROM OVER 50s

07

DECEMBER, 2020

Bank of Mum and Dad
Inheritance Tax
Financial Future

Over the past ten years, the Bank of Mum and Dad has become a regular lender for young people around the UK.* For first time house buyers, it has become common to receive a loan from parents to establish a foot on the property ladder, with research this year showing nearly one in four home purchases are backed by “the Bank of Mum and Dad”.

Not only that, but attitudes towards inheritances have changed as a result of the pandemic, with many reconsidering the flexibility of their assets, and the impact they can have on their children’s lives whilst they are still around to see it.

Many have altered their inheritance plans, gifting money earlier than intended, or have taken out their pension earlier than anticipated to help provide a safety blanket for their offspring.

However, as the pandemic continues it seems that the Bank of Mum and Dad, or grandparents, is not only in demand for house purchases. Up to 68% of over 55’s have drawn on their savings throughout the pandemic, spending less on themselves as pressures on family’s financial circumstances continue. *

Not only that, but attitudes towards inheritances have changed as a result of the pandemic, with many reconsidering the flexibility of their assets, and the impact they can have on their children’s lives whilst they are still around to see it.

It is vital that these loaners seek the best advice on the best way forward

Many have altered their inheritance plans, gifting money earlier than intended, or have taken out their pension earlier than anticipated to help provide a safety blanket for their offspring.

It is natural for parents to want to support their children through these challenging times, and with job losses, furlough schemes and various debts built up, there is no doubt that this pandemic has brought some of the most challenging financial times for many. However, it is vital that these loaners seek the best advice on the best way forward, basing decisions on individual needs in a bid to avoid self-sabotaging their own financial future.

Source: 

**https://www.financialreporter.co.uk/mortgages/bank-of-mum-and-dad-funding-56-of-first-time-buyer-purchases.html
*https://www.reallymoving.com/first-time-buyers/guides/bank-of-mum-and-dad

PROVIDING NEWS AND VIEWS TO SUIT ALL NEEDS

This Blog is published and provided for informational purposes only. The information in the Blog constitutes the author’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular investment strategy is suitable for any specific person.

Getting Back To Pensions

Getting Back To Pensions

by | Oct 6, 2020 | Economy, Education, General Investing, Planning

GETTING BACK TO PENSIONS

06

OCTOBER, 2020

Pensions
Savings

Over the past year, the world has been on hold with coronavirus having a huge impact in all aspect of financial life. Perhaps naturally, so have your future plans. Undoubtedly, this has brought concerns for those with pensions saved in volatile markets.

But as we start to emerge from the COVID-19 pandemic and adapt to our ‘new normal’, is it time to start thinking again about what our futures look like? Is it possible to start picking up plans again? In this article we explore a few ways you could bring the retirement plans back onto the table in the wake of the crisis.

Understand your pension

Are you clear on what type of pension you own? The impact of the crisis on pensions depends on the type of pension owned. The old school method of final salary or defined-benefit schemes may in one way be a lucky break in this instance, with the investment received unaffected by the market performance. The Pension Protection Fund should also support the investment if the company running it fails, a massive reassurance during this time if exposed to industries like airlines.  As well as this, the government is still honouring a triple-lock guarantee on the state pension, which remains unaffected by market volatility.

However, nowadays most pensions are set as defined-contribution pensions, from a personal pension or part of a workplace scheme. These bring more individual risk, and it is likely that holders of these style pensions will have seen a drop over the past three months.

Keep up to date with what features your pension has, and how it could help you during this time.

Keep saving

Unfortunately a large number of redundancies during this time has led to a large drop in what people are able to save, however if you are still in a fortunate position to be able to keep saving after the crisis, then you may wish to do so. A pension is a long-term investment, so despite market fluctuations, you hopefully will see growth over the long term, before you need to access the savings.

Cash it in

If you’re struggling in the immediate aftermath of the crisis, taking cash from your pension might give the investment time to recover from market dips, however once it’s gone the opportunity for the value to go back up is gone so it’s often best to wait out any dips as long as you can do so.

Part of your plan should be being ready for the unplanned.

Make it Last

Any money you withdraw from your pension now, could impact your future. Perhaps an obvious statement, but the money you have saved needs to last you for the duration of your retirement. In this time, especially if you have been forced into early retirement, take a good look at the figures, and establish how much you need to save in order to make the money last. In the same way as when you were saving for retirement, perhaps think longer-term and try to ride out market volatility.

Keep flexible

Ironically, part of your plan should be being ready for the unplanned. With times changing, you may have to adjust the time you were thinking of retiring. Perhaps you are part of the record number of over 65s who could be forced into early retirement because of COVID-19, or perhaps you’re thinking of deferring your retirement to allow your money more time to benefit from growth in the market.  Life is having to become more flexible in these new times, and your money should be ready to work for you as and when you need it.

Have faith and stay calm

Making rash, emotional decisions rarely ends well in the world of investing, so although dips in the market may tempt you to sell or pull out, If you already have a retirement savings program under way, with asset allocation appropriate to your risk profile and long-term goals, you probably want to continue following your plan. If you have benefited from financial advice, your adviser should have spent a significant amount of time ensuring you have a robust plan in place so that your needs are covered. Keeping in contact with them during this time should help you to feel calmer as the times change.

Give it time

It is important to remember that pensions are long term investments, and if you’re young and currently paying into a workplace pension, there is time for your pot to regrow and recover following any setbacks. For some more elderly pension savers close to retirement, some funds have provided the option of being ‘lifestyled’, meaning a pension has been moved to less risky funds like cash or bonds as one approaches retirement and would benefit from a greater percentage of their money being in lower risk assets. Explore if yours provides you with this option.

Contributions

Now may be a good time to assess what contributions you are putting aside for your pension. Even though strategies can depend on market movements, increases in contributions can, over the long term, make a greater impact on your retirement pot, dependent on market movements.

If you need help, ask for it

Life is, now more than ever, full of uncertainty so if you need help, ensure you speak to someone about financial advice and guidance.

No-one can predict the future, and as times continue to change and adapt, it’s important to remain calm and consider all options to ensure your retirement plan is as smooth as possible.

PROVIDING NEWS AND VIEWS TO SUIT ALL NEEDS

This Blog is published and provided for informational purposes only. The information in the Blog constitutes the author’s own opinions. None of the information contained in the Blog constitutes a recommendation that any particular investment strategy is suitable for any specific person.

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