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Money Matters: Money Matters:

When the Best Action to 10 Years of Belper IFS: Our First Decade As I write this, there’s a great deal of unease, uncertainty and conflict in the world. It’s a worrying time. While we all have fears and concerns on many levels, I turn to my role as an Independent Financial Adviser. Take is No Action… 10 years ago, Belper Independent Financial Solutions was formed after its founder (me, Kevin Glover) was made redundant from The Derbyshire Building Society. Since then, Belper has seen the loss of The Derbyshire, Woolworths, Somerfield, Thomas Cook and Britannia Building Society to name but a few long-standing institutions that are now confined to history. Generations of people have been served or been Business & Professional 10 years ago, Belper Independent Financial Solutions was formed after its founder (me, Kevin Glover) was made redundant from The Derbyshire Building Society. Money Matters: 10 Years of Belper IFS: Our First Decade A large part of my role over the last 2 years has been providing comfort and counsel; allaying investors’ concerns over fears of the global markets during very turbulent customers of these organisations. You are probably one. State Pension Age has changed several times and will most likely do so again. At least interest rates have Since then, Belper has seen the loss of The Derbyshire, Woolworths, Somerfield, Thomas Cook and Britannia Building Society to name but a few long-standing institutions that are now confined to history. times. Investors saw this turbulence via the media but also not changed much! Rubbish then and not much better Generations of people have been served or been significant falls in the values of the pensions and investment funds. Covid felt like it stopped the world turning and the global markets (not just the UK) collapsed in March 2020 significantly. Mostly this turned into a 7-month financial blip albeit it was very stressful at the time for many. Incredibly, today. Consider this – joining the EU was considered the right decision once upon a time. customers of these organisations. You are probably one. State Pension Age has changed several times and will most likely do so again. At least interest rates have not changed much! Rubbish then and not much better today. the calendar year 2020 saw a huge vaccination-based recovery and produced often amazing and unexpected positive returns given their low point in the spring of the same year. From my dining room in 2009, to an office in Heanor, back to Belper and now to the present location, much has changed including the greyness of my hair and the size of my waistline! Now as a team of 8 we have seen Consider this – joining the EU was considered the right decision once upon a time. From my dining room in 2009, to an office in Heanor, back to Belper and now to the present location, much has changed including the greyness of my hair and the So today we have seen an incredibly tricky start to 2022. Firstly, unwanted rising inflation meaning central banks have moved to slow it down by raising interest rates which traditionally cool down global economies. Unfortunately, the client base expand over the years. ‘Generous ’ successive Chancellors introduce new legislation impacting the public and signposting the need for financial advice. size of my waistline! Now as a team of 8 we have seen the client base expand over the years. ‘Generous ’ successive Chancellors introduce new legislation impacting the public and signposting the need for financial advice. the markets don’t like this and react with large sell-offs due to expected lower returns for investors as the growth prospects for many companies shrink. Secondly, all this What about you – what has changed in your lives over the last 10 years? How many jobs have you had? Has What about you – what has changed in your lives over the last 10 years? How many jobs have you had? Has your family extended or tragedy struck? How many coinciding with the escalating military conflict. your family extended or tragedy struck? How many times have you moved house? How many pension So normal best practice would be to sit tight as long as you can afford to and allow the markets to recover (as they times have you moved house? How many pension schemes have you been a member of and simply left, through one reason or another? How many cars, schemes have you been a member of and simply left, through one reason or another? How many cars, partners and other life events have occurred? mostly do a la 2020). But the 2020 recovery was unusually quick and historically recoveries typically take 2 years+. partners and other life events have occurred?How many investments have you made and when were they last reviewed and looked at? My point is Some much longer. There have been many global collapses in How many investments have you made and when were they last reviewed and looked at? My point is

my lifetime of 50 years and I remember a good few of them. (Tech Bubble, 9/11, the Banking Crisis and Covid to name that the need for financial advice and a solution should a few). This current uncertainty will be another, to a lesser not be seen as a one-off. Financial products and solutions extent we hope. We can be certain that other major events were probably right at the time, but just how much has will take place in the future but of course, we cannot predict with any accuracy exactly what these may be. changed since their inception? Previous conflicts have seen markets shrink in anticipation and in fear of war. Then, perversely, growing during the war itself. Not in all cases though. Investment funds (whether held in pension wrappers or alternative structures such as Stocks and Shares ISAs), are mostly run by fund managers who are also human beings. As humans they may retire, defect to other So, whilst we encourage sitting on ‘paper losses’ to avoid crystallising ‘real losses’ as a general ‘rule of thumb’, it is not altogether reliable. Some investments will never recover; some are unreliable and completely unsuitable. companies, or run out of luck! Solutions that may have been right at the start may no longer be suitable or effective. Leading fund managers in 2009 may no longer be leading fund managers as we approach 2020. Circumstances for each investor are different. The means to ‘ride out the storm’ is not always available to every In April 2015, pension regulations changed. They will investor and actual real loss could be devastating. Great almost certainly change again. Pensions from prior to care is required. this time may no longer be suitable – but just how would you know? So, as you sit munching your turkey over the I regularly interview clients who have no idea whatsoever festive period, consider how many of these questions if the pension or investment they have is good quality apply to you and see what may benefit from having a or suitable. Many providers often only supply annual review. statements. The valuations usually only show the date of the last statement compared to this. No mention of the journey Is 2020 the time to take a look at your financial that the investment or pension took between these two spot dates. Investors are blind to the levels of risk they are exposed to and, unaware, many investors leave alone in blind arrangements once again and get them fit for purpose? faith. So, sitting tight may not be the best solution and advice should be sought before making decisions to sell or remain in the pension fund or investment. Wishing you a happy 2020 and a prosperous next 10 years.

that the need for financial advice and a solution should not be seen as a one-off. Financial products and solutions were probably right at the time, but just how much has changed since their inception? Investment funds (whether held in pension wrappers or alternative structures such as Stocks and Shares ISAs), are mostly run by fund managers who are also human beings. As humans they may retire, defect to other companies, or run out of luck! Solutions that may have been right at the start may no longer be suitable or effective. Leading fund managers in 2009 may no longer be leading fund managers as we approach 2020. In April 2015, pension regulations changed. They will almost certainly change again. Pensions from prior to this time may no longer be suitable – but just how would you know? So, as you sit munching your turkey over the festive period, consider how many of these questions apply to you and see what may benefit from having a review. Is 2020 the time to take a look at your financial arrangements once again and get them fit for purpose? Wishing you a happy 2020 and a prosperous next 10 years.

By Kevin Glover, Belper IFSBy Kevin Glover, Belper IFS By Kevin Glover, Belper IFS

This information is general only and is not intended to This information is general only and is not intended to address your particular requirements. The data above should not be relied upon in its entirety and shall not be deemed to be or This information is general only and is not intended to address your particular requirements. The data above should not be relied upon in its entirety and shall not be deemed address your particular requirements. The data above should not be relied upon in its entirety and shall not be deemed to be or constitute advice. No individual or company should act upon such information without receiving appropriate constitute advice. No individual or company should act upon such information without receiving appropriate professional advice after to be or constitute advice. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. a thorough examination of their particular situation. professional advice after a thorough examination of their particular situation.

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