Lockdown and Financial Planning
Recent and current Corona Virus restrictions have affected everyone in ways that we never contemplated in January this year. While many of the wider population have suffered bereavement or hardship from loss of earnings, many retired people have benefitted from not having the opportunities to spend their retirement income, and commuters working from home suddenly are better off as they are not paying to commute.
From an investment perspective, volatile markets have hurt many investors, more so if they have been overweight the UK’s 5% share of global market capitalisation. Talk from the Bank of England about negative interest rates does not bode well for income from interest bearing accounts, and at some point, the Government may have to raise taxes to repay the huge amounts they have borrowed to fund public expenditure.
Aside from reviewing the monetary aspects of life, new restrictions on our freedoms and changing working practices mean that many clients are reviewing their goals, aspirations and financial planning. Things that previously seemed important might now seem less so, and vice versa. One client recently told me that having moved from a house in the provinces back to his flat in London, he really missed having any outdoor space during lockdown, and is considering moving out of London. For others, not having to commute 5 days a week means that property further way from work becomes a viable option with a resultant increased quality of life.
The job of a Financial Planner is to help you explore what your goals and priorities are, in light of recent societal changes, and to organise your finances in such a way as to deliver the outcomes you truly desire. Many people are finding that, on modifying priorities in light of Covid-19, their goals are now within reach and closer to being achieved than they previously thought possible.
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