The Big Red TYE Button
Hello all, I hope you’re coping with the late January/early February deluge of rain and wind. I don’t know about you, I’m definitely ready for spring now. A slightly less fierce deluge of wind and rain.
Lovely.
We’ve got the Six Nations starting very shortly - tomorrow evening at 8pm actually as France host Ireland. Whilst I’m not a rugby devotee, and the sporting highlight for me this year will undoubtably be Scotland’s efforts in the football European Championships in the summer, I do love the Six Nations, and international rugby in general. There’s just a great, friendly, relaxed atmosphere at any and all of the games. And we’re winning the odd one now, which is a little bonus, and a constant surprise. We’re not used to winning.
Tax Year End - Sound the Warning Klaxon
Sound the alarm, don the hard hats, and get ready to push the big red button. TYE – a strong contender in the competition of “the least trendy acronym in existence” - is nearly upon us.
Accountants have their self-assessment rush in January, and financial planners have a similar experience throughout the month of March. Aren’t we lucky?! Non-stop rock and roll in the world of personal finance, people.
Anyway, we’re nearly there. Nearly thrown into the realm of last-minute contributions, rushed applications, and calls to stressed out and caffeine-fuelled provider staff, ensuring our client’s funds have been applied before the 5th April deadline. Or, you know, not that. That’s just been my experience in the past. There always seems to be things that pop out the woodwork in March. Yes I know it’s only February, but I’m being organised.
So consider this fair warning, mi amigos. If you’re thinking about ISA/pension/Junior ISA/Lifetime ISA/anything else I’ve missed contributions, and we haven’t yet spoken about it, let’s get the wheels in motion. Especially if there’s a third party involved.
We’ll generally always make it, but March can be quite busy and I’d hate for you to miss out on your allowances.
Welcome
We’ve had a number of new clients join the firm over the past few months. You know who you are, and it’s been nice to work a range of different people, looking at retirement planning, investment options, and getting back into the world of corporate advice. Thank you, and welcome.
The jokes are bad, the coffee’s good, and the newsletters are surely due some sort of award. Any moment now.
Choose your timeframe, choose your outcome
When having a conversation with someone who is thinking about making an investment, of any kind, I will often comment that they should be prepared – whilst the money is always accessible, of course – to tie the funds away for a period of five year’s minimum. Now, man makes plans and God laughs as the saying goes, but it’s a good rule of thumb.
It’s not just a random timescale either. There is sound academic data backing up the concept of five years as a minimum expectation, or a minimum commitment to your investments, if you will. In a sentence, the statistical likelihood of an investor enjoying a positive outcome (making money in other words) increases, and sometimes dramatically, depending on the length of time that they are able to remain invested. Conversely, the chance of having a negative outcome also dramatically decreases over a longer time period.
If you take anything away from this, I’d suggest it is an expectation that there will absolutely be negative periods of performance from time to time, but, history being our guide, the chances of good outcome are much higher over the longer-term. And if we know that in advance, it’s likely to make all of us better investors.
Optimism Prism
Your monthly dose of the good stuff:
This gentleman, who is living in Thailand and helping save dogs from a quite brutal start in life. I love that.
Cape Verde Becomes the First African Country in 50 Years to Eradicate Malaria
Somerset amputee former soldier to become pilot
Recommendations:
This is a very biased recommendation, but I’m sure you’ll forgive me. My brother Fraser has not only published his cookbook with the help of the fine folks at Penguin, but is now a Sunday Times Bestseller, and the book (at the time of writing) is now sold out on Amazon (now restocked!). No, we don’t know how it happened either.
I’m currently listening to Arnold Schwarzenegger’s book: Be Useful: Seven Useful Tools for Life. Very much enjoying it. I think it’s the directness of his approach, and the lack of fluff. Worth a spin if you’re looking for something in the motivational camp.
A slightly different recommendation to finish, and I’m sure the story will have moved on by the time this newsletter is distributed, but I am very much enjoying the citizen journalism of Dan Neidle. Well done that man.
The Compliance Bit:
This newsletter is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.
The value of investments may go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future performance.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
A pension is a long-term investment and the value is not guaranteed. Any advice or considerations are again personal to each individual’s circumstances.
