We often hear things in conversation about what we should all be doing with our money. If somebody does well with their finances because they have done something different, they will tell all their friends and family that that’s what they should all be doing too, with no regard to everyone else’s financial position. Although one person may, for example, see great capital gains from investing in gold 12 months ago, that’s not to say that everybody should go out and do so now. Not only has 12 months past and the world changed, but not everybody will be willing to risk losing their money for the potential to see a higher than average return.
After many people made capital gains in a short space of time from purchasing buy to let properties, others immediately thought that is what they should be doing and that they would see the same result. In reality, there are some cases where people have purchased buy to let properties and not been able to let it out for long periods, maybe even seeing the value of the property fall at the same time. This would result in them having to meet the mortgage payments from their own resources whilst seeing the equity they had in the property disappear. Although the risk of this happening for some people would be bearable, others may experience a total financial meltdown.
We’re all guilty of saying and doing things sometimes without knowing all the facts, for example, every man in the country (myself included) will watch England’s football team play and be certain that they would choose a better team to go out onto the field. It can be the same in the financial world, with opinions made too easily and without full thought.
There’s a formula often quoted which tells you what percentage of your income you should be saving for retirement, based on your age. I believe it is wrong to use this as it doesn’t take into account anybody’s own circumstances. Maybe you have millions of pounds in assets which you could use to support you when you’ve retired, or maybe you are struggling as it is to keep up with mortgage payments and cannot commit to the same level of pension contributions as you are told you should be.
With so many financial products on the market, it is important that you ensure you choose the ones to suit you best. If you have always let your bank or building society representative organise your arrangements, maybe you should consider seeking ‘Independent’ financial advice. After all, what are the chances that the people who run your current account also happen to offer the best mortgage rate, the most competitive insurance products, and the investments with the best performance? Seeing somebody who is independent ensures that they can help you cherry pick all of the most attractive rates and offers.
Because we’re all individuals with individual needs, it is vitally important that you contact and Independent Financial Advisor (IFA) so that they can tailor a recommendation to suit you. Kieron Bassett Financial Services are an Independent Financial Advisers and we are open six days a week. Contact the office on (01524) 832057 or via e-mail info@kieronbassett.com to arrange an appointment.
Jason Hinde CertPFS