Well here we are, almost at the start of the next financial year. That’s 6th April if you are not sure. But there is a lot more going on than usual, with Brexit to name just one, so what does this mean for investors?
Stock market volatility is happening around the world, not just here in the UK, and more than Brexit is contributing to this. For example, issues around the future direction of the US economy and slowing economic growth in China.
At the start of the financial year traditionally people start to consider where they are going to invest during the year. Some will be considering an investment in ISAs, now that we have another £20,000 allowance for each adult and £4,368 for children under 18. Others may be looking at how much to invest in their pensions and other tax-efficient investment options.
No-one really knows how the political decisions around Brexit are going to impact on investment returns, but here are some points worth noting.
The recent volatility of stock markets is likely to continue in the short-term. Partly because markets don’t like uncertainty.
However, market volatility is inevitable and markets are always likely to move up and down. What investors need to consider is the degree of risk that they are comfortable with.
This is where talking to a qualified Financial Adviser can help. Your Financial Adviser will help you to focus on your long-term goals and they will recommend the type of investments that are in line with your attitude to risk and your individual circumstances. It is also worth noting that your attitude to risk will probably change at different times in your life, so if you have not had your portfolio professionally reviewed for a while, it is probably worth you getting in touch.
The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.
Investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.
Tax treatment varies according to individual circumstances and is subject to change.
At Four Oaks Financial Services, our initial consultation is at our cost and our Financial Advisers are qualified to give advice on a wide range of investments, including ISAs and pensions. Our offices are near Lichfield, with free private parking or we can visit you in your own home. Contact our Client Liaison Team on 01543 401029 for more information or to make an appointment.
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