Posted by: WealthIFA | August 26, 2011

Finanical News Update we 26/08/2011

So, we (my children and I) finally convinced my wife that camping for a few days last week was a good idea!… I am still puzzled though as to how it took me less time to put the tent up on my own in the garden a few weekends back to check it, than it took last week with my four additional er, helpers?… some things just cannot be explained can they?!…

I think my wife did enjoy it, although I am sure she would never admit to it in public, then again, the car was full with as much “luxury” as we could manage to take as she had no intentions of repeating the sort of camping we endured on our travels after university – bedding being what you could carry on your rucksack and so on, so a roll mat at best… ah, the joys of the great outdoors!…

Whilst we are thinking about comfort, on my return this week I see that many of the articles do focus on the last few weeks stock market woes which will cause discomfort to some, as always producing winners, losers as well as those who will be, theoretically speaking at least, largely unaffected…

The FTSE has tumbled from the highs of around 6000 earlier in the year (in fact only a month ago it stood around 5900) to the current levels of just over 5100

But, as with any increases in the value of an asset, the decreases only become reality when you sell… until that point it is only a paper value anyway… so, unless you were intending on selling right now, in theory, you will be able to wait for any recovery?…

That said, as a rule of thumb, if you are intending on accessing funds within the next 3-5 years (or perhaps longer in the case of pensions), it would be considered prudent to begin to “de-risk” your investments so as not to have them exposed to such market falls or, at the very least, minimise their exposure to such risks.

OK if you are approaching the 5 years to retirement period, you have just seen the value of your funds fall so you may think about waiting for some sort of recovery before you start the de-risking process… alternatively, if you feel the market has further to go, you may prefer to “cut your losses”?…

Either way, funds invested in the stock market will always be prone to market movements so it makes sense, if you know when you will need access that you should begin the de-risking process in the lead up to this time which could be anywhere between 3-5 years or longer.

As always the benefit of hindsight can be a wonderful asset to have but as I said, the above approach would have helped those, as they approached retirement for example, to minimise the impact of the sort of market volatility we have experienced recently.

Have a great weekend!

This Week …

Estate Planning

Inter family lending:
Will-writer jailed for ‘invalid wills’ bluff
Landowning earl must sell off family heirlooms to buy food
The on-line revolution in will-writing
66pc: the true level of tax paid by higher earners

Long Term Care

Bupa in warning over care home fees:
Pensioners face care home worry:


Stock market slump hits pension values:
Saga report warns of more pain for ‘sandwich generation’:
More pensioners forced to borrow from their families:
Over-50s increasingly worried about rising cost of living:
One in three pensions at risk of stock market crash:
Pension system changes will affect millions:


10 ways you’ve lost (and gained) from the financial crisis:
How to cover the soaring cost of university:
The winners and losers in a time of a global economic crisis:


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