Diary of an adviser: End of tax year panic
The end of the tax year brings the usual panic with some clients leaving pension and ISA contributions to the last minute. My clients are waking up to the benefits of investing in ISA and pensions at the start of the tax year and not the end and it is an interesting discussion point.
While client discussions can be very varied, the main trend that is coming across at the moment is the enthusiasm for savings and investing, which I believe is higher than it has been for the last five years. The question my clients are asking is how long will equity markets continue rising before they come tumbling down again? As an investment adviser I use this question as an opportunity to reinforce the benefits of long term investing and asset allocation. I always go back to academic evidence and show statistics volatility has always been present in equity markets, rises and falls are inevitable in any market. The major point to remind consumers is, it is time in the market and not market timing which builds returns in investment portfolios. These types of discussions are important because you are outlining the difference between investing for the long term and short term speculation.
I sadly faced the loss of one my clients at the age of 65. Having worked for many years she had only been retired for five years. The discussions with her husband show the trust that has been built up of over the last ten years. Consumers searching for a good financial planner should know when they engage a financial planner, a good one will assist them with care and sensitivity through some very distressing times including the death of a loved one, divorce as well happier events such as planning their retirement. The value in engaging a financial planner cannot always be measured in pounds and pence.