| 2021 – looking forward
2020 – which was supposed to be a year of perfect hindsight certainly created huge worry to both individuals and businesses, both domestically and globally. Worry prevented many long term investors deploying capital and surplus income for growth, worrying that values would plummet and income suffer as a consequence. Being globally diversified in the leading assets in our Best Price FS Portfolios surprised and pleased our clients. In truth, the investment market performance had (pleasantly) surprised on the upside the most positive of economic forecasters as ‘Main Street’ suffered and ‘Wall Street’ prospered.
2021 – Looking forward Being correctly positioned (risk adjusted) is essential moving forward. The opportunities are sizeable for long term investors but the path will remain bumpy! Navigating this bumpy path – with an investor’s wants and needs, and risk tolerances and risk capacity front and centre is our absolute focus. I have stated many times – investors should seek professional advice input into portfolio construction, deploying capital and surplus income for growth/income, subject to their personal risk views and capital security needs. We have seen ‘too often’ investors holding in effect, positions in cash, when capital is simply in substantial surplus. Sometimes this requires expert oversight. We are here to help with this as a typical example of poor deployment of assets. 2021 – Looking forward 1. Use tax allowances – if you can
2020 created deployment concerns, some with failing businesses and lockdown worry – expecting the markets to work in the ‘here and now’ – rather than ‘seeing through’ the corporate mess of Covid and pricing assets to recover. As the saying goes – ‘Use it – or lose it’ – use your ISA, Pension and CGT allowances. This generally requires professional help. Call to discuss. 2. Deploy capital into suitable assets (some say this means ‘getting your investment working harder’) We very much view this as making sure your assets do as you desire – and are placed correctly to meet your needs. This is simple if you are a professional, not so if you make investment decisions from reading off a promotional document. We often challenge investors to assess their delivery of returns – on a risk adjusted basis. Our clients duly understand where we are able to make professional improvements to not only risk management and performance but cost also. 3. Gather a professional review To date we have never once seen that an investor has not benefited from a professional review. If there is no benefit – we are confident enough to carry out the review for free – unlikely as this is!! Review holistically – considering the broad picture of one’s affairs, setting up monthly savings where accumulation (growth) of capital is required. Engage with professional advice services This doesn’t mean that all decisions and recommendations are made by your adviser. We each have ‘fall back’ locum advisers as we are flesh and blood, so would want professional advice for our families in the event of death! Personally – and I can say this in a factual way, I have yet to see an individual produce a better outcome with their finances in all of the reviews that I have personally carried out over the decades of advising! For me, this is powerful. I am looking forward to the day when I see a retail investor doing a professional ‘advice’ job on themselves (but the assessment has been against the advice we have provided!) We are here to help – use the start of 2021 to focus on your financial affairs – like the ‘old New Year resolution’ and use your allowances – don’t lose them. Together we would be sure to be stronger for the long term. Best of health, happiness and prosperity for the year ahead and beyond. Best Wishes. Richard and the Best Price FS Team |
Use your allowance or lose it!