One of the challenges with writing these is not so much finding something to write about, it’s that there is so much I could write about! I know what excites.
Read moreMonday Musings 09/01/2023
Welcome back everyone! I hope all of our festive breaks were merry and bright. I can only speak for my own but it was exactly what the family needed – warm, loving, peaceful, with far too much food and a few laughs thrown in. And isn’t family, after all, what it’s all about really?
But now we’re back and on to business! January means two things
- 1) Quarterly Reports – we are in the process of preparing the quarterly reports. For those of you who receive them, keep an eye out!
- 2) ISAs.
The tax year is drawing to a close, so you need to make sure you’ve taken full advantage of the tax savings available to you through investment into an ISA each year now. Have you invested the full £20,000 this tax year? And if not, can you? Now is great time to use phased investing, and I will use Dad’s words from a Monday Musing last year to explain:
“I believe that this is the perfect time to use a process known as phased investment. What this means is that you invest into a Stocks and shares ISA but make the initial investment into a cash fund. Over an agreed period of time your cash fund gradually feeds investment into a portfolio of equity and bond funds. By doing this you can take advantage of what is called pound cost averaging. That sound very complicated but is quite simple to arrange and we would of course do this for you.
The idea is that if you invest the same amount of money over several periods, for example every month. As the market fluctuates you will buy more units or shares in a fund when it goes down and the value of these cheaper units will rise in line with the markets. I have put a chart below to demonstrate this.
Period | investment | Unit Value | No of Units |
1 | £10 | £1.00 | 10 |
2 | £10 | 0.50 | 20 |
3 | £10 | 0.25 | 40 |
4 | £10 | 0.50 | 20 |
5 | £10 | 1.00 | 10 |
Total £50 | £1.00 | 100 Value £100 |
What this shows is that in a time when the market has fallen dramatically and has not risen past its initial value you have double your money. I should stress that this is only an example of the concept and not a prediction of what is going to happen today.”
But please do remember time is of the essence with only weeks left before this tax years allowance closes, and the next begins. Contact your adviser if this is something you would like to take advantage of.
So, to the markets,
30.12.2022 | 09.01.2023 | % Change | % Change on week | |
FTSE 100 | 7451 | 7699 | Up 3.32 | Up 3.32 |
Dow Jones | 33147 | 33630 | Up 1.45 | Up 1.46 |
Nasdaq | 10466 | 10569 | Up 0.98 | Up 0.98 |
S&P | 3839 | 3895 | Up 1.45 | Up 1.45 |
NIKKEI | 26094 | 25973 | Down 0.46 | Down 0.46 |
Hang Seng | 19781 | 20991 | Up 6.11 | Up 6.12 |
Shanghai | 3089 | 3157 | Up 2.20 | Up 2.21 |
CAC 40 | 6473 | 6860 | Up 5.97 | Up 5.98 |
DAX | 13923 | 14610 | Up 4.93 | Up 4.93 |
Not all of its bleak out there. Sometimes we hear good things in the press. Ok, not often. But sometimes. For example, news came in the press recently that the.
Read moreREMINDER: Last call for pre-registration for the Webinar Thursday 30th November 10am Pre-registration link is here: https://event.on24.com/wcc/r/4415548/1FE19490B28856477CC82CC544A090D0 N.B. The webinar will be recorded, so if you cannot attend but.
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