Please note that, due to copyright, we are no longer able to include a direct link to the newspaper article.
“Pandemic accelerates desire to pass down wealth”
Fear over potential tax rises leads to a rise in people gifting assets to family members.
Comment: We always recommend to clients, when it is relevant for them, that they start thinking about gifting assets to their loved ones. This can through trusts or by gifting directly. You can read more about this here.
“Two-fifths of UK home movers put property plans on ice”
Coronavirus crisis continues to affect transactions as restrictions are eased.
Comment: With the unknowns surrounding the housing market and the wider economy, this is very understandable.
“Successful investors learn from history”
The current crisis has accelerated existing investment trends.
COMMENT: This is an article written by an investment manager who unsurprisingly talks up their style of investing. The lesson we have learnt from history is that prudently spreading risk and managing costs & taxes are the most important things to do for an investor. You can read more about this here.
“Neil Woodford, Mark Barnett and the case for active management”
The average UK active fund has outperformed over the long term.
COMMENT: This is a very poor analysis which suffers from what we call “survivorship bias”. Over the years many active funds will have ceased to be due to poor results. They have not been taken into account in this analysis.
We only include active funds within our portfolios where we have a lot of faith in their ability to outperform. You can read more about this here.
“Coronavirus will have a long-term impact on work and retirement”
Demographic upheaval will be felt for years to come influencing size of future labour forces.
COMMENT: There can be no doubt that the current crisis will change peoples lives. A good financial plan is like a flight plan. When you are in the air you will need to adjust it to take into account what is going on.
“The tricky question: when to sell”
The steady decline in the value of Mark Barnett’s Invesco Income and High-Income funds before his sacking this month has once again left investors asking whether they should sell.
COMMENT: Whether to hold onto an underperforming fund is a decision which is fraught with emotion. We believe having a defined plan of what to do with funds at outset avoids the risk of holding onto a fund for too long or too little.
“Why you shouldn’t buy dividend-paying stocks that have taken Government support”
Income investors should not be suckered into buying companies that have kept dividend payment, experts have warned.
COMMENT: We always recommend clients take a total return approach when investing which incorporates income and capital growth. You can read more about that here.
“What does a financial planner actually do – and should you use one?”
Financial planning goes well beyond picking investment ideas and can save you from big tax bills.
COMMENT: A good financial plan incorporates investment strategies, tax planning and much more. However, what financial planning is really about is helping you get as much life from your money as possible. This is something which sometimes can’t be measured in pounds and pence but in what you could do that you might not have done. You can read more about this here.
THE GUARDIAN / OBSERVER
“Cash in the time of coronavirus.”
“How to get in financial shape for the new normal. Guardian Money helps you put your finances in order while adapting to a new way of living”
COMMENT: A very good article for anyone wanting to look at what they are doing with their money themselves.