Posts Tagged ‘financial review’

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How to survive the recession

January 28, 2009
Time to get real

Time to get real

The IMF released its World Economic Outlook update today, forecasting World Output to grow by 0.5% in 2009. Before you start thinking “Oh, that’s not so bad”, take a closer look:

First, it compares very badly against 3.4% growth in 2008, and 5.2% in 2007.

Second, and scarier still, the UK economy is expected to shrink by 2.8% in the same period (although Downing St dispute the projections).

This leaves a £20bn hole in the Chancellor’s coffers. And what do you do when you’re £20bn short? The options boil down to:

  1. Cut spending
  2. Increase taxes
  3. Print more money

So it’s going to be a long hard slog. But you know that already, or you wouldn’t be reading a well-informed blog like this one ;-) . So what should you do? Here’s my suggestion:

  • Stop blaming the banks. OK so they took unnecessary risks and lent recklessly, but it takes two to tango. Borrowers unable to repay are at least as culpable as lenders who conveniently forgot to manage risk because they were making money hand-over-fist.
  • Manage your money better than you think you need to. Pay down your debts. Save. Budget and maintain a sustainable lifestyle.
  • Get your head down – work harder than you’ve ever worked before. When times are hard and companies downsize, the most valuable staff are the most productive. When companies go bad, the best people find new employment faster.

We’re not talking rocket science here, and we’re not even talking about financial advice, this is just common sense. Once you’ve got that straight, meet your Independent Financial Adviser (IFA) and make sure that your financial arrangements are inline with your goals. Simple, affordable steps like taking  out an income protection policy could help you through the tough times.

Read the IMF release (PDF).
More about financial reviews on www.advice-forum.co.uk.
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Rates are down. Should you overpay your mortgage?

January 25, 2009

[originally posted Thursday 15th January, 2009]

should you overpay?

should you overpay?

According to the Council of Mortgage Lenders (CML) today, people moving house in November (latest figures available) typically 14.4% of their income on mortgage interest.

With the base rate moving downwards again since November, it’s likely that this percentage has reduced still further. Many investors are seeing dismal returns right now, so should you be overpaying your mortgage every month?

Not all lenders allow you to make additional payments, and if you have other, more expensive debt, it’s almost certainly advisable to clear that first.

I’m afraid the usual advice applies: talk to your Independent Financial Adviser and get some professional, financial advice first. If you’re not sure, just ask.

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What’s it all about?

January 25, 2009

[originally posted Tuesday 13th January, 2009]

A couple of people have asked me what Advice Forum is all about. Why not just go direct to your bank, or to an IFA?

what's it all about?

what's it all about?

It’s a good question – here’s where Advice Forum is different: if you have a question about mortgages, investments, pensions, life assurance, insurance or school fees you have 2 clear choices:

1. Figure it out for yourself, cross your fingers and hope you made a good decision
2. Carefully choose a competent professional adviser and follow their recommendations

Advice Forum gives you access to the expertise of a real, live Independent Financial Adviser (IFA), but leaves you completely in control. You can ask anything you like, but you’re not even under any obligation to reply.

You should be aware that without lots of juicy detail about your personal circumstances, our advisers can only give you general answers and information, but it’s offered free of charge and without obligation. We hope that you’ll find our input invaluable, and when you’re ready you’ll come back for a formal consultation. But the choice is yours.

Just Ask.

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Bank of England base rate cut to 1.5%

January 25, 2009

[originally posted Thursday 8th Jan 2009]

lowest for 300 years!

Bank of England base rate is now the lowest since its foundation in 1694, that’s the lowest in over 300 years!

Should we be jumping for joy or wallowing in despair? The slightly disappointing answer is neither really.

If you’re a saver, you’ll be hit by dwindling returns. What’s the point in saving with derisory interest rates? There are still some good deals out there, but you’re going to need to move quickly. Is it time to stock up on “cheap” equities?

If you’re a borrower it’s generally good news, but banks are under no obligation to offer you cheaper credit. And credit, as we know, is harder to come by.

If you’re buying a house, should you act fast or wait to see whether property prices fall further?

What about investors? Have stockmarkets reached their nadir? Should you be moving your money around? What’s the wisest way to invest a lump sum right now? Should you be drip-feeding monies into asset-backed investments?

If you’re in work, will you have to work for longer (or even ’til you die)? Conversely, if you’re over 50, would it be better to access some monies early?

Retirees, annuity rates are likely to fall, what should you do? Can you afford to wait? If you’re in poor health, or a smoker, it’s more important than ever to consider your options fully.

The reality is, of course, most of us fit into more that one category, so the right move for your specific set of circumstances may not be straightforward. But the good news is that there are opportunities out there, if you’re clear about your goals.

Now is the time to contact your financial adviser for a comprehensive financial review.

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