The uncertainty caused by COVID-19 is evident throughout the world and the long-term impact is hard to predict. One of the immediate short-term effects is on financial markets.
If you want to grow your wealth, retire comfortably, pay for a house or your children’s education it is likely you will need to invest your assets to outgrow inflation and hopefully achieve long term returns.
If you have existing investments, it is likely you will have seen the value fall due to Covid-19. It is uncertain when this period of volatility will end meaning it is unclear how your investments will be affected in both the short and long term.
Despite this, financial markets are starting to show signs of recovery. The FTSE 100 has been climbing over the past month.
At Four Wealth Management, many existing and new clients have booked telephone meetings with a Financial Adviser to discuss the possible long-term benefits of investing during this crash. Historically, stock markets have recovered from uncertainty and long-term growth has been achievable. Our Financial Advisers recommend a long-term investment horizon with a view to invest for at least five years.
How can you take advantage of low market prices?
Consider increasing your pension contributions
It is likely that you have a workplace pension set up for you due to the introduction of auto-enrolment. All workplace pension schemes are different and you may not have access to a large range of fund options.
Saving into a pension is one of the most tax-efficient ways to invest for you future due to generous tax relief of up to 45%. Please note 20% tax relief will be automatically added to your contribution and any additional or higher-rate relief will need to be claimed through your annual tax return.
One way to potentially take advantage of the current fall in the markets and utilise tax relief is that you could consider is starting a private pension through Four Wealth Management. Your Financial Adviser will work with you to determine your individual goals and recommend funds to help you achieve these.
Invest in a Stocks & Shares ISA
The minimum age you can currently access a private pension fund is generally 55. If you may want to access your investments before this, you could consider investing in a Stocks & Shares ISA.
Interest rates are at historic lows meaning Cash ISA’s are unlikely to even be outgrowing inflation so your capital is being eroded. A Stocks & Shares ISA gives you more flexibility and the opportunity to potentially grow your assets along with any rises in the stock market over time.
A Financial Adviser at Four Wealth Management will work with you to determine your best options.
Book a no-obligation meeting with a Financial Adviser
To discuss ways you can invest to help meet your financial goals, you can book a no-obligation telephone or Zoom meeting with one of our financial advisers by phoning us on 0117 973 0500 or visit our website to book.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested. An investment in a Stocks and Shares ISA does not provide the security of capital associated with a Cash ISA.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.
Four Wealth Management Ltd is an Appointed Representative of and represents only St. James’s Place Wealth Management (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products. The title ‘Partner Practice’ is the marketing term used to describe St. James’s Place representatives.