A Rock and A Hard Place for Savers
Talk about being stuck between a rock and a hard mountain. Savers today are enjoying the paltry returns of c2.8% for instant access savings and 3% for a one year fixed bond.(1) That’s the rock. Over their shoulder is the rugged mountain of inflation squashing any potential returns they may have. Inflation currently sits at 3.5%, meaning that a basic rate tax payer will be ‘enjoying’ 2.24% whilst inflation corrodes the real value of their capital at a rate of knots.(2)
Are you fooled by market noise?
Managing Director, Worldwide Financial Planning, Writes:
I am often asked what I think of an individual share or marketplace/sector. ‘What do you think of the banking sector, northern rock, China’ is a typical one. It will often be followed by a recital of some news they have read elsewhere. Some of it can be from good sources, others can be from well, anywhere else.
Should I leave my New Star funds or just sit and wait?
Managing Director, Worldwide Financial Planning, Writes:
How the mighty have fallen! During the year, this share has traded from 167.50p to a halfpenny! The years fall is recorded at a horrible 98.96% which is pretty much as bad as it gets.1
It is our choices that show what we truly are, far more than our abilities
Managing Director, Worldwide Financial Planning, Writes:
I wonder how this quote by JK Rowling sits with some of our bankers who bought ‘worthless debt securities’.
Multi Managers – A Good Idea?
Reader Writes:
I have a range of investment funds across a wide selection of companies and I have heard about multi managers and how they manage all my money for me. Is this a good idea?
What is a Mirror Fund?
Managing Director, Worldwide Financial Planning, Writes:
Some of you my well remember my column six months back regarding ‘mirror’ investment funds. Whilst it caused a massive stir at the time it is continuing to create further debate in the financial services industry as it would appear that many had not fully grasped its impact on the investor.