Observations on the Financial World

The Big ‘Lies’ About Our Economic  Prospects By Grant Ellis In the spring of 2007 I hosted a conference for a group of insurance professionals. One of the most popular speakers was my old friend the economist Roger Martin-Fagg. He was his usual entertaining self, but took everyone by surprise by suggesting that the world economy was on the brink of a meltdown the like of which we had never seen before, and it was going to happen soon – probably within 12 months. Yes, he predicted the financial crash of 2008 a year before it actually happened. Now in Spring 2007 the world economy was doing very nicely thank you. Following three consecutive years of good growth, averaging 3.8% it was expected to fall only slightly in 2007 to 3.6%. Meanwhile the UK was doing pretty well too. House prices had risen from an average of £150,633 in January 2005 to £184,330 in May 2007 – a rise of 22.4%, whilst wages grew by an average of over 5% per annum between 2004 and 2007. Inflation on the other hand...

By Grant Ellis I n 1789 Benjamin Franklin said that there are only two certainties in life – death and taxes. We all seem happy to talk about taxes, but less keen on discussing, or planning for our ultimate demise. It’s as if by talking about it we are somehow tempting fate. But it can bring tremendous peace of mind not only to the planner, but also to their loved ones to know that a well thought out  programme  is in place for their eventual departure. Here are  7 good reasons why you shouldn’t put off planning for it - old or young. D ying without leaving a will  is  not   a good idea. If you  haven’t made  a will,  then  when you die, everything you own will be shared out according to the law instead of  in accordance with  your wishes. This could mean  your estate  pass es  to someone you hadn't intended – or that someone you want to pass things on to ends up with nothing. ...

By Grant Ellis Bear in mind that retirement savings are for the long run. The Coronavirus (COVID-19) is having a widespread impact across all elements of financial life, including retirement plans. The current global stock exchange turbulence, as a result of COVID-19, will undoubtedly be concerning for people whose retirement savings are spent partly or entirely during these volatile marketplace conditions. However, making decisions based on what is happening in the short term may be a risky thing to do. It may be tempting,  for  instance, to consider transferring all your investments into  cash  or other lower-risk investments - but in doing so, you  not only  lock in the loss as a result of recent falls, but you  may also miss out   as  the value goes back up, so you'd lose out in the long term also. Here are our tips on how to navigate these difficult times. Allow time for  Markets to Recover It is really important t...