It’s no secret that the global financial markets are facing some very unstable times.
With prices and inflation soaring across the world and warnings of recession in the air, it’s natural to have questions about where to put your money to try and keep it safe and see it grow.
Our Independent Financial Adviser Gary Jackson has some tips on what to do right now.
Don’t rush into anything
“When the markets are dropping or volatile there can be a tendency to cash in investments,” says Gary.
“However, the global situation may mean that the markets are currently approaching their lowest point – if they’re not there already. This means it could actually be a good time to invest ahead of things beginning to recover in the coming months or years. This is a good time to get more units for a lower price and if the market recovers they will grow in value.
“The markets have bounced back from catastrophes before and the best investments tend to perform well over a longer period. You need to think carefully and get advice from a professional before making any big decisions.”
The advantages of pensions
“Some pension portfolios by comparison are still performing reasonably as they do tend to be weighted towards gilts and fixed interest securities so there isn’t so much volatility there.
“Another big advantage is the fact that personal pension contributions attract 20 per cent tax relief (more can be claimed for higher rate taxpayers). There are very few investments that would do that well overnight and things would have to be going really badly to undo that benefit.
Play it smooth
“It is also worth considering the option of investing in funds which involve some level of smoothing.
“Smoothing is a mechanism which takes into account a fund’s value over a longer period, helping to remove some of the effects of market volatility. It means growth may be a little less if markets rise but it will cushion the impact if they fall.
“This kind of investment can give you some reassurance when the markets are unpredictable at times like this.
Get some advice
“It’s hard to overstate how important it is to get professional advice before making any decisions about your pensions or investments.
“There are resources you can access online or over the phone, but nothing beats sitting down with somebody face to face and talking things through in detail.
“Of course, we’d be only too happy to talk to you about your options at robinson+co so feel free to get in touch with us to set up an initial free consultation.”