In a post Brexit world we need to be prepared to plan for our futures and above all lets be sensible, why panic there’s really no need!!!
Despite all the negativity and may I say, appalling rhetoric being spouted by politicians who either were In or Out, the facts seemed to be buried for the sake of political point scoring and one-upmanship.
So at the risk of being sensible lets look at some of the facts.
For nearly 10 years the Bank of England Base rate has been at an all time low of 0.5% per annum. There’s no point in harping on about “oh I remember when I could get 6% per annum from my building society accounts- (that was a generation ago!!). We now live in 2016 and things are not the way they used to be.
Unemployment is at the lowest its been for nearly 6 years, Inflation is at a very low point., mortgage interest payment rates are at all time lows.
Theirs a reason for this, the economy of the UK specifically, and the rest of the World generally, is totally neutral and balanced and there is a high degree of economic stagnation going on. This decision by the UK to exit the European Economic Community has dropped an absolute bomb into the pond. Quite honestly its probably the catalyst that’s been needed to “get things going’.
If we draw some historical facts out of the fire, then its worth mentioning that the reason for this flat lining of the economies was due to the complete miss management of the lending books of the American, British and certain European Banks, they were all greedy for market share, they wanted to play ‘I’ve got more customers than you have’, they lent money out for mortgages irresponsibly, they saw Bricks and Mortar as the only asset class that was worthy of lending money against. They under invested in businesses and entrepreneurs, where historically they made more money than they ever did from mortgages!!
In 2012/13 the Banks pretty well realised they were incapable of running compliant and trustworthy Financial Services divisions and there was a near total capitulation of Bank Assurers. (thank god for that !!, leave it to the professional IFA’s thank you very much!!!).
It is now the time to look at how you have structured your finances. Look outside of the Banks Cash ISA’s or Building Societies. I’d even go as far as to say National Savings and Income NS&I are not too clever an investment either.
Professional Wealth Management via an Independent IFA is going to give you a proper appraisal of what is available to you, your IFA should monitor developments and position your money into the most appropriate places as and when the market conditions dictate they should. You get peace of mind; lower taxation and you should make more money. What have you got to lose???
Frank S Cochran – Managing Director & Independent Financial Adviser, FSC Investment Services Limited.
The purpose of this article is to provide technical and generic guidance and should not be interpreted as a personal recommendation or advice. You are not certain to make money – you may suffer a loss. FSC Investment Services Limited is Authorised and Regulated by the Financial Conduct Authority. The views expressed are those of the author and not necessarily those of FSC Investment Services Limited.