Whenever we are in market conditions such as those affected by Brexit, it is sensible to review the balance of our investment portfolios – and to assess our income and capital needs over the next few years.
For example, looking at asset allocations, many balanced portfolios contain holdings in property funds when appropriate. While such funds provide long-term investment spread for those appropriate portfolios, in uncertain times, and the current Brexit situation is one such testing period, they can become subject to downward pressures. If there is then a significant selling of units or shares in those funds, they may become subject to a temporary moratorium on repurchases by the managers because, first, the underlying assets may not be readily realisable to fund repurchases and, second, protecting the interests of the longer-term fund investor is an important consideration for managers.
Like Noah, plan ahead! As we always recommend, regularly review all the assets in your portfolio, as well as your income and capital needs – especially when situations such as Brexit and the Coronavirus place pressure on the markets.
Some key golden rules, the ‘foundations’ for building on your prudent financial planning strategies, are:
* Review your liquidity;
* Ensure that you have sufficient liquidity to meet your short-term and emergency cash requirements;
* Review your capital requirements over the next, say, three years;
* Take advice – and when doing so, specifically check that you will have sufficient liquidity to meet those capital requirements when needed – endeavour to avoid being a forced seller.
Remember, we are here to help so please do not hesitate to contact us regarding your financial planning situation. Reviews and our Lifetime Financial Planning service are part of our added-value services for our clients.
Barry Fleming & Partners has grown from a tax advisory background into a broader business that encompasses investment management. Both things matter for wealth management, retention and creation. That expertise makes the company strikingly different from others.
This capability allows Barry Fleming and Partners to use its strength in tax advice to take a 360-degree-view of a financial situation to give much broader, more comprehensive advice.
We bring together up to the minute tax, estate, investment and retirement planning advice to create individual, ‘joined up’ financial strategies. This allows our clients to understand and have confidence in how they can best control, retain, and build their assets and income to achieve their objectives with least risk.
A high level of service is key to our long-term client relationships. We work collaboratively. That means our clients can benefit at all times from having ready access to our team of financial planners.
Barry Fleming & Partners are an independent financial advisor specialising in ISA’s, Pensions, Tax, Trusts, Estate Planning, Inheritance Tax Planning (IHT) and other Financial Planning areas. Please don’t hesitate to call on 01488 608 686 and ask to talk to one of our financial advisors. Alternatively use the contact form on our home page.