News & Articles

We think the world economy is in fair shape. The data from the US are red hot, Europe has slowed but should muddle through, and China has a stimulus programme on the go, which will take effect over the next six months. Globally, consumers are confident and spending merrily. Inflation is roughly where central banks would like it to be but is drifting up, this could lead to interest rates rising faster than markets currently expect.

For investors who have portfolios stuffed with government bonds, this is going to be a problem. Bonds will probably lose money as rates rise, particularly in Europe and the UK. At Hamnett Wealth Management, we are focused on reducing this risk for our investors.

The US official short-term rate stands at 2.25%, higher than in Europe, Japan or the UK, but still well below its long term average of 5%. As rates rise investors are likely to be hurt, particularly those with a more cautious risk appetite. We have been diversifying into assets that are less vulnerable when rates rise, and have also built up some cash.

A key problem for UK investors is uncertainty about the Brexit negotiations. We hold a lot of your portfolio outside of sterling – which should protect against a ‘hard’ Brexit outcome, where we expect the value of the pound to plunge. To balance against the Brexit negotiations turning out surprisingly well for the UK, we also hold currency options that will protect against a soaring pound.

Overall, we remain neutral on equities: a growing world with moderate inflation is good for businesses and earnings, and share prices should remain firm, if more volatile than recent years, even if some markets look moderately expensive. We remain underweight credit, since investors aren’t being paid enough to take on the risk of heavily borrowed companies defaulting.

Every year World Alzheimer’s Day takes place on 21 September and is the focus of World Alzheimer’s Month in September. It’s an opportunity for organisations and individuals around the world to raise awareness, highlight issues faced by people affected by dementia and demonstrate how we can overcome them to help people live well with dementia.

Globally, dementia is one of the biggest challenges we face, with nearly 50 million people living with dementia worldwide. People living with dementia may have always managed their own or their family’s finances. But at some point they may need extra support to help them. You can find more information about the help and support available at: www.nhs.uk/conditions/dementia/finances/

Hamnett Wealth Management are working towards becoming a dementia friendly business. All of our staff have all completed online training that covered three key areas – people, processes and places.

Some areas of finance can be complex but we always speak in plain English and explain everything comprehensively. We encourage clients to ask as many questions as they need to until they are comfortable and able to make an informed decision.

For more information on Dementia Friendly Businesses, please visit their website at: www.alzheimers.org.uk/info/20116/making_organisations_more_dementia-friendly

This Saturday, 15th September, is National Pension Awareness Day. The aim of this campaign is to alert the nation that it is not saving enough for retirement and to unite the financial services industry, businesses, employers and the government to share innovative ideas and to work together in driving engagement with retirement saving.

A Pension Awareness Campaign bus will tour Britain, offering free guidance from a team of on board advisers. Find out more about pensions and the campaign on the website: http://www.pensionawarenessday.com.

If you’d like help with Pensions and don’t know where to start, why not give us a call? Hamnett Wealth Management offer unbiased, expert financial planning advice. Our professional, qualified Independent Financial Advisers take time to understand your specific requirements, aims and financial objectives to ensure your future is secure. We offer a free initial face-to-face consultation where we will assess your needs and explain how we can help. Call us now on: 0114 235 3500 or email us at: advice@hamnettwealth.com

Experts from across the financial sector have expressed their fears over a ‘no deal’ Brexit after the Government produced guidance in the eventuality of no agreement between the UK and EU, according to a recent article on Financial Planning Today.

The Government’s advice document on ‘Banking, insurance and other financial services if there’s no Brexit deal’ concedes that EU-based UK pensioners may struggle to get access to funds but also insisted these were hypothetical scenarios and a ‘no deal’ result was “unlikely given the mutual interests of the UK and the EU in securing a negotiated outcome.”

In this fast changing climate of political instability, uncertainty can bring fear. As trusted Independent Financial Advisors, we’ve been taking calls from clients concerned with what this all means for them and whether now is the best time to invest. Our advice is don’t be tempted to make any rash decisions.

However, it’s important to remember that when the financial landscape changes, to not respond would be a missed opportunity. We recommend you seek advice from a professional Independent Financial Adviser to review your investments and ensure that your current financial plan is still working for you now and will continue to do so in the future.

Investment values have risen well in the last 12 months but volatility has been high. With politics affecting markets, it is imperative that your portfolio and pensions are strategically invested to profit from uncertainty and protect yourself from market shocks. If you’re nervous then we can help stagger your investments to reduce any shock in the short-term but ensure that you see real competitive growth in the long-term.

At Hamnett Wealth, we always keep up-to-date with any changes to legislation and policies so we can provide the best possible advice to our clients. There is a lot of speculation at the moment about what could happen but we pride ourselves on dealing with the facts and explaining everything to our clients in plain English.

Compared with non-retired households pensioners have spent up to 50% more in the past 10 years, according to Canada Life.

Retired people are spending £17,000 per household, with spending rising faster than disposable income. Retired households spent £139bn in 2015, up 71% compared to 2005, with spending forecast to reach £194bn by 2025.
Retired households made up just 12% of the UK’s overall spending in 2005, but within just 10 years, they have increased their share by a quarter, now comprising 15%.

Richard Priestley, executive director of retirement income at Canada Life, said: “The figures shine a light on how much more important the older demographic is in our economy.”

“As the UK’s retired population swells, its spending power will only increase. This has clear implications for businesses marketing their products and services, and highlights the opportunity for those able to meet the needs of this segment of the population.”

At Hamnett Wealth Management, we call it the golden generation. We deal with many mass affluent clients – our parents are a example – they were born post-war, had access to university and moved into well-paid professions. The biggest driver is they’ve probably enjoyed the final salary schemes of the 70s and 80s whereas people are today, in theory, put into pensions but many have not enjoyed the final salary guarantee.

https://www.ftadviser.com/2015/12/16/pensions/personal-pensions/canada-life-puts-spotlight-on-golden-generation-wA9o9UPvNSP5kN2DlSBlIL/article.html

There’s been a number of articles in the news this week about divorce and one that struck a chord was this piece about how the financial impact of divorce can last for decades and carry on into older age: http://www.abc.net.au/news/2018-07-26/divorce-financial-impact-affecting-older-women/10037520

Whilst the research was carried out by the Australian Institute of Family Studies, the same applies here in the UK. Back in March 2017, the Chartered Insurance Institute (CII) launched a report called “Risk, exposure and resilience to risk in Britain today” (http://www.cii.co.uk/media/7461333/risks_in_life_report.pdf).

The research emphasised that divorce and separation are a significant financial risk to women left “vulnerable” by joint decisions made while they were in a long-term relationship.

The average divorced woman has less than a third of the pension wealth of the average divorced man, while 10% more divorced women expect to rely on the state pension than men, 41% of whom have an occupational pension.

If you are going through a separation or divorce, you will have a lot on your mind about what the future holds and where you go from here and may feel totally overwhelmed by everything you have to consider.

One vitally important thing to think about is how the breakdown of your relationship affects you in terms of your assets, estate and, most importantly, any children that you may have. There will be areas that need dealing with immediately to maintain stability such as bills and mortgage payments. However, once these are taken care of, it is time to look to your longer-term financial future and seek advice from a professional Independent Financial Adviser.

We specialise in advising clients going through divorce and separation. We can discuss the best way to split assets for separating couples and consider the tax and legal consequences. We are an accredited member of Resolution, an organisation of 6,500 family lawyers and other professionals in England and Wales, who believe in a constructive, non-confrontational approach to family law matters.

No separation or divorce is the same, each individual has their own specific requirements, aims and financial objectives. We are empathetic to your needs and treat your situation with respect and sensitivity. Divorce and separation can be financially complex but we speak in plain English and explain everything comprehensively. We encourage you to ask as many questions as you need to until you are comfortable and feel able to make an informed decision as to how you wish to progress.

If you feel you could benefit from talking to an Independent Financial Adviser, please contact Hamnett Wealth Management on 0114 235 3500 for a free initial review meeting.