Posted by: WealthIFA | September 23, 2011

Financial News Update we 23/09/2011

I hope you are well?

As usual, after the initial few weeks of the schools going back, we all seem to be returning to our familiar routines once again – my journey to the office in the mornings is certainly taking longer that’s for sure! – and peoples mind sets now seem to switch to sorting things out “by Christmas” or the “year end”.

Another unfortunate familiarity is the continual presence of market woes…

Once again, it seems that the brief flirtation we thought we had with growth is seen to be more of a “one night stand” for now as markets around the world continue to slide.

As I said a few weeks back, for those approaching their retirement (assuming they had reviewed things regularly beforehand and therefore begun the “decumulation” process) the events of recent times, should not have had a massive effect other than in terms of diminished returns on their deposit holdings (rather than reducing their asset values) and, for those with retirement that is something of a future prospect, there should be time to ride out the storm, who knows, this could represent an opportunity to invest more – although it is always going to be a hard decision to be amongst the brave and stick your head above the parapet!

Of course, retirement can mean different things to different people.

It wasn’t an unusual want of previous generations to retire at 60 or 65 and, work wise at least, almost fall of a cliff, stopping altogether but I think these days we have a more gradual approach in mind such as reducing our working week by one day, then two days etc over time or perhaps with the intention to maintain at least part of the week where we are engaging in something that a) pays or b) interests us or, c) the optimum, both!

As always it depends on our own plans and, as someone who advises on such things, I will always recommend that you do have a plan – rather than fastidiously occupying your life without direction.

Recent events will certainly cause concern and some could say that the perfect storm is upon us with interest rates kept low, inflation up and possible solutions like the National Savings index linked bonds having filled their quota almost 6 months early, being withdrawn. Although this last point does show that there is money out there – we are all just being a little more cautious with it…

Could it be time to get out the tin hats?…

The usual round up of finance related articles below but as always, do let me know if you have seen something of interest?

This Week …

Estate Planning

50p tax rate costs the UK £500m a year, claims leading think tank: http://bit.ly/qzW7xf
Revenue changes guidance on gifts out of income exemption http://bit.ly/oZL3B8

Long Term Care

Government must have care home contingency plans say NAO: http://bit.ly/o5Kfy6
Tougher care home inspection regime announced for Scotland: http://bit.ly/qUhe37
Dementia: the £20bn issue we can no longer ignore: http://bit.ly/oldd4W
Public still in denial over cost of long-term care: http://bit.ly/oReC9Y
Andrew Dilnot: don’t let economy wreck elderly care reforms: http://bit.ly/quNe6i

Retirement

Pensioner income ‘at 18-month low’: http://bit.ly/pM3ybM

Investments

Savers and investors struggle to beat inflation: http://bit.ly/rp74yd
Shares fall sharply on economy fears http://bbc.in/nX1yGZ

Have  a great weekend!

Regards
Kieron

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