Investment Monthly Round-Up
You can view our investment monthly round-up for April, written by our Investment Manager Nicholas Carr, by clicking here.
6th April 2022 was the date of the change in legislation that has brought in the “no fault” divorce.
This means that couples wanting to divorce can now do so without the former minimum two years separation clause.
A change of this magnitude is probably the biggest change in 50 years. There are fears that it could lead to an increase in couples divorcing.
Isn’t this a good thing?
The concern I have is from a financial point. As the system becomes easier, the financial arrangement talks could become harder and more unfair.
Financial arrangements I have seen in the past often favour one person more than the other. If one party is stronger willed or more confident, I can see even more people losing out on an entitlement.
There is now the added concern I have that individuals with a “no fault” divorce may decide to sort matters themselves to save money.
This, for many, will be a false saving and for the reason given above, could lead to one person receiving less than their fair share.
How can it be made fairer?
Splitting assets should seldom be 50/50 in my opinion, especially if one party has stayed at home or worked part-time to bring up a family, while the other has forged a career with future enhanced benefits.
I am not a divorce lawyer, and neither do I offer family legal advice, but I do offer financial advice and my involvement has led to enhanced pay-outs for my clients.
What can you do?
I am a firm believer in marriage and trying to make it work, but I do recognise the importance of extracting yourself from an unhappy relationship. I just don’t think you should be penalised because you or your solicitor have missed the bigger picture, so please feel free to contact me if you want advice.
PS. there is no charge for an initial chat.
Financial advice from a highly qualified and experienced adviser can be the difference between settling or splitting the finances fairly.
Contact our experts on 01480 869466 or email email@example.com to see how we can help you.
Coping with the Rising Cost of Living in 2022
We are now about a third of the way into 2022 and inflation has just hit 7%, interest rates are 0.75%; petrol is £1.68 and a lot of people have received notification of what the increases in their new utility bills are going to be, and have gone into panic mode.
It is not a good time if you are on a limited budget and savings will need to be made. This is sometimes a daunting thought but analysing your finances and seeing where the cut backs can be made will help, and you may surprise yourself with how much you can save on unnecessary expenditures.
The older generation, in which I include myself, will remember when mortgage interest rates hit 15% and a £50,000 mortgage cost £640 per month. We did not have Netflix or Sky and people gave up smoking and we had no food banks – we simply went without. I say this, not as a badge of honour, but from living it first-hand. I can tell you from personal experience, hiding from the milkman until pay day and never having a spare few quid was not nice, but we cut back everywhere we could.
As Bob Dylan said “The times they are a changing” and just at the moment they are not changing for the better, so we have to ask ourselves how we ride the storm and make plans longer term.
The country, however, is at near to full employment and yet there are still so many vacancies that are not being filled and average pay increases are 4%.
So, what can we do, and who of us are managing to help? Well, I have mentioned food banks, and I am sure that they could do with more donations or deliverers. But what else could we do? Why not offer advice and guidance to those who you know would benefit, child mind or parent sit if you are able to, to enable someone else to go out to work.
Investment markets did well last year and although they were hit in January and February, March was not so bad and April has been pretty flat, so those with a reasonable level of savings have not really seen much, if any, real impact to their lives. Fund values are, after all, up over the last 12 months.
The gap will get wider between the haves and the have not’s and whilst some of us have traversed from one to the other, a little assistance I am sure would be gratefully received.
Top 100 IFA 9 Years Running!
Ethical Investments – featured in The Hunts Post on 17/12/21
If life on another planet looked down on us, what would they see and would they understand it?
We are a small planet with people spread over most of it, who rely on water and food to survive. We churn out fumes and destroy rain forests so carbon is created, half the world lives in relative luxury, whilst the other scratch the ground for an existence. If you are reading this and are warm and not hungry, however bad your life may be, you are part of the worlds luckiest.
We usually do not see our situation for what it really is and given we are not a David Attenborough or Greta Thunberg, can we really do that much anyway?
The answer is obviously yes, but I will leave how, to others. I recycle and have planted trees but my biggest attempt to help is how I invest.
Over 10 years ago Beacon set up a range of risk rated Ethical investment portfolios and as I write we are about to exceed £100m of client investments in them. This is a lot of money and 10 years ago we would never have thought it possible.
The big question is, are all these investors wishing to invest Ethically as a conscious decision to save the planet? I can tell you that the answer to that one, is no.
Beacon certainly does have clients who care, and who do not wish to encourage companies who work in Tobacco or Armament industries, but many simply want a good return.
Investment returns work on a supply and demand basis. Most people would rather invest in good things rather than bad. With demand for good Ethical investments, companies are needing to change to attract investors. As more and more people choose a limited, although growing, market of companies, the limiting supply dictates a better return than normal.
For the third year running Beacon have been shortlisted as best UK Ethical Investors. It’s not just about our exceptional double digit net returns, but I am sure it helps
If changing the world seems like too big a task, consider whether you should be doing your bit in the way your pensions and ISA’s are managed. The Ethical train is building up steam, but only you can choose whether to get on.