Our Festive Reflection on 2020
Our Festive Reflection on 2020
It’s been a strange and difficult year for most of us. Some people have sadly endured great hardship, whereas some people, including many of our clients, have benefited from unexpected financial savings and extra income.
In this festive reflection on 2020, we look back at the year as a firm, and how we can help our clients move safely into 2021. Our aim is to help you feel fully prepared and ready to tackle any challenges head on.
What we’ve been doing
Firstly, we would like to send our best wishes to our clients and providers, especially those who have been badly affected by the pandemic, whether this is through illness, personal loss, furlough or unemployment. As always, our friendly and supportive team have been on hand to advise our valued clients, adjusting financial plans where necessary to suit the changing climate.
We’ve also been supporting our business community too. For example, we donated a raffle prize to Colchester Zoo, a local business close to our main office. This much-loved local tourist attraction, the zoo has been severely impacted by COVID-19, and they have understandably been struggling to meet their hefty £600,000 a month running costs due to the outbreak. We are keen to continue to help in any way we can.
2020 has been an interesting year for investments too. We’re very proud of the fact that our portfolios performed spectacularly overall compared to the average IFA portfolio. The US election saw share prices spike temporarily with the FTSE closing by 1.7% and the Dow up by 1.3%. Of course, the markets soon settle after a high-profile political event, and it is too soon to tell how the Biden Presidency will affect the markets over the coming months.
Our approach to building a successful investment portfolio for our clients is to diversify; we include a variety of global funds and holdings, instead of those only focused on the UK. Markets will always rise and fall, so a long-term strategy and risk management is the key to enjoying good returns on your investments. If you need to arrange an investment review or would like to consider this option, please speak to our financial advisers.
Looking forward to 2021
Over the past year, many people’s life plans have inadvertently been thwarted due to the impact of recent events. But for some of our clients, the crisis has led to great opportunity and has been a catalyst for positive change, due to extra savings and income. No matter how you have been impacted, now is a good time to review any existing financial plans to check these are still in line with your life goals. We have listed a few useful questions to help you reflect and prepare for 2021:
Have you been forced to change your life plans in any way? Consider the long-term impact on your family’s future, both financially and from a personal perspective. Some people have taken the opportunity to seek early retirement, whereas others have been forced to scale back or postpone their plans.
Did you unexpectedly receive a windfall in the form of a big pay out, e.g. redundancy or government funding? Consider how you can make the most of this newly acquired money and use this to realise any life ambitions. Some people have used extra funds to finance a start-up venture, whereas others have chosen to invest into property or put into their pension pot.
Have you saved a lot of money due to working at home, e.g. travel costs? Consider whether your current savings strategy will help you to achieve your life goals. Some people have seen a steep increase in their bank balance from not buying season tickets and associated costs.
Do you have an adequate level of protection in place for your family? Consider the benefits of life assurance and income protection. These policies could help you to look after your loved ones, should the worst happen and you are faced with unemployment, loss of business or even loss of life in the future.
When did you last check your Will? Consider whether any recent changes to your lifestyle will need to be reflected in your Will. Always ensure that your Will is kept up to date and is legally binding to avoid any issues for your family after you pass away. Wills will also need reviewing following life events such as divorce or the birth of a chid.
In our next blog, we will be looking more closely at how you can manage any unexpected savings and extra income acquired, due to either the pandemic or another cause. In the meantime, if you have any questions or concerns about your current financial planning strategy, we would always recommend seeking advice from a qualified financial adviser.
The Aventur team would like to wish everyone a Merry Christmas and a prosperous New Year! We look forward to supporting you with your wealth and life goals in 2021.
Please note: our office will be closed from 24th December until 30th December 2020, and also 1st January 2021. We will return to business as usual on 4th January 2021.