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Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

Funds which you need to access within 2 years should not be exposed to stock market fluctuations

Pre-election investment thoughts

Are we being too complacent about the outcome of the election and the possible impact on market performance and investment returns? Quite possibly. The amount of noise from the press and the number of questions from my clients is nowhere near the pre-Brexit level, and yet all elections bring market risk.

First a disclosure. I am no longer a regulated Financial Adviser so nothing which follows should be taken as personal advice. However I was a regulated adviser for more than 30 years, so what follows is based on many years of experience in guiding clients through their investment strategies at times of uncertainty, oil crisis, dot com crashes, recession, and goodness knows what else. What is slightly different this time around is that I am semi-retired and drawing on my pension fund so this is no longer theory.

My default course of action in times like this is always to go back to basics.

Funds which you need to access within 2 years should not be exposed to stock market fluctuations

That is the number one risk control strategy.  So my first step was to check that my cash reserves were still adequate.

Secondly I have looked at my pension fund and made absolutely sure that I will not need to sell any equity type funds to fund my planned withdrawals for three years. If you are selling funds every month to meet income needs you are in a high risk situation whatever your adviser tells you.

Thirdly I have looked at my overall strategy and monitoring process to make sure everything else is working as it should do.

I still expect clients to ask me:

If you are nervous why don’t you move everything back into cash?

The answer is that I am still a firm “buy and hold” advocate. Making a decision to put everything into cash is easy. What is far more difficult is making the re-investment decision when everyone around you is full of gloom and despondency.

Those few clients who over the years have insisted on selling everything when things were looking bad have finished up losing money. Why? Well the answer is they have only re-invested when their confidence has returned – without exception, at above the level at which they sold.

Those of you who read my regular blogs know I have one primary message.

Pay Attention - it's your money!

This, I think, is just one of those “pay attention” times. Not massive risks but you may need time on your side whichever way the vote goes.

If you are still not sure and would welcome some guidance just text me on 07770 575122 with “election” in the text and let’s talk.

 

IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122

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