At a global level current crises such as the record droughts being experienced around many parts of the world and massive energy and supply chain crunches, are a salutary reminder to governments and indeed nations of people, of the pressing need to always look ahead and be in a position, post any immediate event initial reaction, to always aim to respond with the right resources and with the right team in place. The differences between being able to respond or just simply react, are often, frankly, enormous.
As I found out earlier this year after my skiing accident, life does have a way of presenting obstacles (and opportunities) when you least expect them. Having the resources and people to draw upon and flexible plans in place doesn’t change the likelihood of these events – they just make us far better prepared to deal with them.
So, in this edition of The Wire, you can read some useful articles about how we can help you to plan for the bad (and good!) things that come your way.
For example, using cashflow modelling to consider what your financial future might look like can help you answer questions such as “can I retire now?”, “will I have enough to sustain my lifestyle?” and “can I make this gift to a family member?”. Read Phil Patient’s informative article on the benefits of this approach.
You can also read Sebastian Gladwish’s article about the growing trend for a family to internally “share” a financial planner and to work together to create a family financial plan that includes multiple generations. It’s a potentially great way to help ensure the smooth transfer of wealth, to manage and meet multi-generational expectations, and to substantially reduce potential tax issues.
Hear from our award-winning later-life lending expert: One area of expertise you might not immediately associate with HFMC is “later-life lending”. Yet, we’re lucky enough to have one of the country’s leading experts right here.
Indeed, the prestigious British Mortgage Awards recently named our specialist, Darren Johncock, as the best later-life lending broker in the UK.
In his article, Darren looks at how we can help individuals and families to tackle IHT planning issues using later life lending (equity release), and examples of where equity release has improved a client’s liquidity position.
And, talking of “liquid”, during periods of economic uncertainty as we’re experiencing now, it can be a temptation to hold more of your assets in cash savings. However, the eroding effect of high inflation can quickly see your cash lose its spending power.
In his carefully presented article, Mark Morris explains why holding more cash than is necessary is likely to be a mistake in the long run, and why even investing at the worst point during the 2008 global financial crisis would still have left most investors better off than cash in the medium term. It’s a fascinating read.
Rishi Sunak in court, and healthy habits
Lastly two other thought-provoking pieces.
Firstly, household names BT and Marks & Spencer are among complainants who have taken former chancellor, Rishi Sunak, to court over what seems like an innocuous change to the way inflation is measured.
While it may appear a trivial issue, experts believe Sunak’s decision could cut lifetime pension benefits by up to 9%, so read about why the court verdict could have a significant impact on your pension income.
Secondly, there’s much we can learn about other countries and cultures when it comes to health and wellbeing. Whether it’s dietary improvements or an imaginative new prescription for Canadian residents, discover seven fantastic health habits to potentially improve your future that you can learn from around the world.
As always, we have tried to ensure that this edition contains something for everyone, and we would love for you to share our articles with those that you think might benefit from reading them.
Finally, I just wanted to thank you again for continuing to work with us – we do not take this for granted. We wish you and your family good health and prosperity – take care out in the sun!