TODAY’S BLOG

BY WHAT MEASURE?

I am conscious that whatever we measure, it never really captures “life”. 2021 has been a good year for our clients and the business. We have taken on new clients, helped reduced debt and costs, improved asset allocations, interest from deposit rates, used tax allowances and reliefs. Some have been reassured of their retirement plans, others have brought forward theirs. We have moved you out of expensive arrangements, ring-fenced funds, protected families and businesses and reduced hassle. Markets have risen (this is not our doing) so valuations are up.

Yet these are reductive measurements. Many of us have had significant difficulty coping with pandemic life, the isolation and inability to do many of the things that we assumed normal. Family members, friends, colleagues have suffered with health, frightening diagnoses, and some, sadly life itself. Some have been furloughed, lost their business or job, those of you working within the NHS or teach have been under tremendous pressure. So yes, returns have been up, but few of us believe that this is the measure of life.

HIGHER OR LOWER

HIGHER OR LOWER? PLAY THE HAND YOU HAVE

Knowing this, every time this year we bear witness to the folly of making predictions. My in-box will be full of “Our Expectations For The Coming Year” or “What Portfolios Should Look Like For This Year”. As we take the long-term (decades) approach I can generally dismiss this as unhelpful noise, designed to evoke anxiety than allay fear. I’m reminded of the 1980s TV Show “Play Your Cards Right” where Bruce Forsyth would reveal cards to players simply shouting “higher” or “lower” than the value of the one previously. Often, I find myself wondering if the investment world is really any better – after all, its meant to be about deploying capital so that good businesses can innovate, improve and expand the goods or services that they provide.

Yet we will see headlines and bylines all attempting to generate anxiety, here are a few that I am expecting.

  • Are Markets About to Collapse?
  • Has the property market overheated?
  • Is cryptocurrency your sure bet to financial freedom?
  • Is the Bond market about to bomb?
  • Will the crisis in (fill in the blank) impact your portfolio?
  • Billions wiped off markets
  • Top Funds for (insert year)
  • Pension storm warning: tax relief is likely to change in the Budget
  • Chancellor plans to scrap (insert point of pain).

I don’t know how this new year will work out for each of us. Some of the above may happen, it may not, the Negative Event World Service (NEWS) wll certainly attempt to stoke anxiety and we can rely on something else always tempting the promise of “better”. I can safely say that we will age, taxes will become due and health, love and friendship are things to cherish and work on. None of us are immortal.

Thank you for paying some attention this year, you are a much better audience than last year. We will continue to call you to look up and look ahead, whilst being aware of the past and context of the present. To be blunt, let us worry about the noise, focus on what you are good at and what you get value from.

Welcome 2022 – we go again.

Dominic Thomas
Solomons IFA

You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email info@solomonsifa.co.uk

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Bakery, 2D Edna Road, Raynes Park, London, SW20 8BT

Email – info@solomonsifa.co.uk 
Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

Take Survey

GET IN TOUCH

Solomon’s Independent Financial Advisers
The Old Bakery, 2D Edna Road, Raynes Park, London, SW20 8BT

Email – info@solomonsifa.co.uk    Call – 020 8542 8084

7 QUESTIONS, NO WAFFLE

Are we a good fit for you?

Take Survey