At the time of writing this the FTSE 100 Index is back below 6000, Covid-19 cases are rising and more redundancies seem inevitable regardless of help from the Chancellor.
So, what do I think you should do?
There are some basic principles which have stood the test of time for both me and my clients over thirty years as a financial adviser and 8 years as an investment and retirement coach. Those principles are just as relevant now as they have ever been.
Number one has been not to have any money invested in funds which fluctuate upwards and downwards which you will need to spend in the next three years. If you are feeling nervous make that four years and if you are a risk-taker two years may be enough. So, before you do anything else check your cash flow plans and make sure you do not have funds at risk which should not be. If your calculations do not produce the results you would like to see use this link to book a free zoom meeting or phone/text me, Richard, on 07770575122 and I will see what I can do to help. I am not authorised to give personal advice, but some coaching/general guidance may set you on the right track.
Number two is to avoid trying to time investment markets and selling out to avoid risk in the hope of being able to buy back in at lower levels. That is truly a mugs game and not one I have seen anyone successfully execute. If your short -term money is safe there really is no alternative to accepting that your medium/long term funds will fluctuate both upwards and downwards and you need to be patient to make money.
Number three is to be very clear over what is short term money to provide for emergencies and expenditure over the next three years and what is medium/long term money. Most people have never done that calculation with the result that billions of medium/long term money is languishing in cash ISAs, bank accounts and National Savings losing its value every year when inflation is considered. At current stock market levels there are some real opportunities to get your medium/ long term money working harder for you but don’t try to be too clever. Investing in equal instalments over say a six-month period is my guidance.
The current scary times provide both risk and opportunity in fairly equal proportion. What is sure is that this is a time to “pay attention” and not to be “hiding your head in the sand”
If you would like some coaching/guidance in how to reduce risk and/or maximise opportunities click here to arrange a complimentary Zoom meeting or phone/text me, Richard, on 07770575122
Retirement Risk Zone: If you are in what I call “The Retirement Risk Zone“ – the three years before retirement and the three years after – this is a particularly important time for you, so do please get in touch. Just use this link to book your Zoom chat. Make the wrong decision, or no decision, now and it could have a major impact on your lifestyle for the rest of your life.
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