Another year, just like any other…
As with every year, it had its share of horror and disaster, Piper Alpha, Pan Am 103 exploding over Lockerbie, killing 207 people and a train crash at Clapham Junction killed 35 people. Edwina Currie managed to create an egg crisis. British films released included “Buster”, “A Fish Called Wanda” and “A Handful of Dust”. Michael Douglas won best actor for his role in “Wall Street” ad “The Last Emperor” picked up a stack of awards. Kylie Minogue started her pop career with “I Should Be So Lucky” (she was) and life was “Perfect” for Fairground Attraction. I was one of 80,000 at Wembley for the “Free Nelson Mandela Concert” and his 70th birthday. He was still imprisoned (not released until 1990).
Then and Now
If you are over the age of 40 this may jog a few memories of 30 years ago. The UK population was about 56m today its about 66.5m. There were about 55,000 first-time graduates, now the number is around 414,000. The Bank of England’s base rate began 1988 at 8.37% but ended at 12.87% (yesterday the Bank increased the rate from 0.50% to 0.75% and some got worried). The FTSE100 closed the year at 1,793 yesterday it closed at 7,575 and that excludes all income from dividends over 30 years. A 10-year UK Government Bond paid about 9.79% in 1988, today around 1.23%. In short equities have gone up, Bonds have gone down. £100 in 1988 would need to be £260.44 in 2018 simply to be “worth” the same because of inflation. That’s an average rate of about 3.24%, in short, the value of your pound has more than halved.
Multiple Choices, Make them Count
This is history, a version of it. If you are now in your mid 40s or older, this is time spent. Who knows how long any of us have left but making the most of life and getting our money to last, whatever it brings is the prospect that you face. We work with clients taking a long-term perspective of life and money. We regularly review progress and make adjustments to ensure that your financial planning remains on course. Change is the constant that we all live with, but many investment principles are timeless, knowing what to adjust is probably more important than knowing you need to.
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 firstname.lastname@example.org