May 2024 - Agile IFA

“Loss aversion” is a type of bias that could affect how you manage your finances. It’s a concept that was developed by renowned psychologist Daniel Kahneman, who won a Nobel Prize for his influential work and sadly passed away in March 2024. To celebrate his life, read on to find out more about loss aversion and how it could impact you.

One of Kahneman’s main arguments is that people’s behaviours are rooted in decision-making. He noted that bias and heuristics – the mental shortcuts you make to solve problems – are important for making judgements quickly. However, the downside to quick decision-making is that errors can occur. One of the biases he defined was loss aversion.

Losses are more “painful” than gains

In 1979, Kahneman and his associate Amos Tversky coined the term “loss aversion” in a paper. They claimed: “The response to losses is stronger than the response to corresponding gains.”

In a study, Kahneman and Tversky asked participants if they’d rather have a:

A. 50% chance of winning 1,000 Israeli pounds and 50% chance of winning nothing

B. 100% chance of winning 450 Israeli pounds.

People were more likely to choose option B, despite the potential for larger returns if they chose A. The research found that loss aversion gets stronger as the stake or choice grows larger.

Further research highlighted that loss aversion could affect decision-making skills even when the risk of losing was very low. For example, participants were asked which option was more attractive:

A. A 33% chance of winning $1,500, a 66% chance of winning $1,400, and a 1% chance of winning $0.

B. Winning a guaranteed $920.

Even though option A only had a 1% chance of winning nothing – and the other outcomes were better than option B – loss aversion theory suggests that people are still more likely to choose option B as they think in terms of their current wealth rather than absolute payoffs.

The theory suggests that you’d feel losses more keenly than gains, which could affect how you manage your finances.

2 ways loss aversion could affect your investment decisions

There are many ways loss aversion might affect your decisions, particularly when you’re investing. Here are two examples.

1. Loss aversion may mean you’re more likely to react to investment volatility

If you want to avoid losses, you may be more likely to make knee-jerk decisions if markets experience volatility, whether it’s your investments that have fallen or the wider market. Snap judgements that are based on fear and other emotions could lead to decisions that aren’t right for you.

2. Loss aversion could mean you’re reluctant to let go of assets

In contrast to the first example, loss aversion could mean you hold on to assets even after it made sense to sell them as part of your wider investment strategy because you don’t want to make a loss. In some cases, it could mean the loss grows or that your overall portfolio is no longer aligned with your risk profile and goals.

How to reduce the effect of loss aversion on your financial decisions

Bias affects everyone when they’re making decisions. It can be useful if you need to make decisions quickly based on your previous experiences and information. Yet, when you want to make financial decisions based on logic, there are ways to reduce the effect loss aversion might be having.

Try to emotionally detach from your finances

It can be hard to limit the effect emotions have on your financial decisions. After all, your finances are likely to play an important role in how secure you feel and whether you’re able to reach your goals. Yet, not letting emotions rule your decisions could limit the impact of bias.

Avoiding reading the news, which might report on how markets are “soaring” or “tumbling” could help you reduce decisions that are based on emotions rather than facts. Similarly, while it might be tempting to check in on your investments every day, doing so less frequently could help you manage the emotional effects volatility can have.

Create speed bumps to slow down

Emotional decisions are more likely to happen in response to a particular event. For loss aversion, you might decide to sell investments after hearing in the news that a “crash” is coming, or after your investments have experienced a dip.

Often, a bit of time to think gives you a chance to reassess your initial decisions and removes some of the bias that may have been influencing you. So, creating speed bumps to slow you down might be useful. For instance, making yourself wait two days before actioning any changes to your investments may provide the space you need to think logically.

There will still be times when you decide acting on information is right for you. A speed bump might mean you feel more confident about the decision because you’ve given it extra thought.

Look at the bigger picture

When you’re investing, it’s likely the value of your assets will fall at some point. Looking at the wider picture could help you put the losses into perspective and consider how to respond.

Let’s say a particular stock has fallen by 10% in a week. No one wants to see that when they review their investments, but how has it performed over the long term? If that stock has delivered consistent growth over several years, you may still have made a gain over the long term, and its value could bounce back.

In addition, how has the value of that stock performed in relation to other assets you hold? Gains in other areas might help to balance it out and mean that, overall, your wealth hasn’t fallen.

Work with a financial planner

Working with a finance professional may help you better understand when bias is affecting your decisions. Having someone with a different perspective who understands your circumstances and goals may be valuable. They could highlight when you’d benefit from taking a step back and considering alternative options.

Please contact us if you’d like to arrange a meeting with a financial planner. We can discuss how we could support your goals and work with you to create a tailored financial plan.

Please note:

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Britain’s housing stock has been dubbed the “worst value for money” in a Resolution Foundation report. With the media reporting that the UK is in the midst of a housing crisis, you might not be surprised by the news, but how the UK compared to other countries could still shock you.

Read on to find out more about the research conclusions and why soaring house prices could mean it’s more important than ever that you secure a competitive mortgage.

British property buyers are “paying more for less”

Many other countries are battling a housing crisis too. In a lot of developed countries, demand for property is outstripping supply and it’s led to climbing house prices, even after concerns that the Covid-19 pandemic and rising interest rates would lead to a fall.

Across almost every metric the Resolution Foundation measured, including housing costs, floor space, quality, and wider price levels, the UK fell short. Indeed, the study found that Brits are “paying more for less” and the UK housing stock offered the “worst value for money of any advanced economy”.

UK homes were found to be some of the smallest among the countries included in the report. Indeed, the average floor space per person in the UK is 38m². That’s significantly smaller than many similar countries, including the US, Germany, France, and even Japan. Indeed, even properties in high population density New York were found to offer a more spacious 43m² per person.

It’s not just the space that could present challenges for UK homeowners – the UK’s housing stock is also the oldest of any European country.

More than a third of homes in the UK were built before 1946. In comparison, the number of homes built before the end of the second world war is just 21% in Italy and 11% in Spain.

As older properties tend to be poorly insulated when compared to newer counterparts, Brits could be paying higher energy bills as a result and might be more likely to face damp issues.

With a general election set to be called this year, the housing crisis could become a key topic during election campaigns.

Rising house prices could mean a competitive mortgage is crucial for your budget

If you’re looking to purchase property, news that the UK’s house prices are high can be frustrating.

Signs suggest the market is slowing – house prices fell by 1% in March 2024 when compared to a month earlier, according to the Halifax House Price Index. However, experts aren’t predicting a sustained fall. Indeed, Halifax noted that house prices have shown “surprising resilience” in the face of higher borrowing costs due to interest rates rising.

There might be little you can do to bring down house prices, but you could save money by choosing a competitive mortgage deal.

Even a small decline in the interest rate you’re paying could cut your household’s outgoings in the short term and really add up when you calculate how much interest you’d pay over the full mortgage term.

The table below shows how the interest rate would affect your expenses if you borrowed £250,000 through a 25-year repayment mortgage.

Source: MoneySavingExpert

As you can see, taking some time to secure the right mortgage deal for you could reduce your regular outgoings and potentially save you thousands of pounds over the full mortgage term.

Considering how lenders may view your application could be worthwhile. For instance, are there any red flags on your credit report that might mean a lender offers you less competitive terms or even rejects your mortgage application?

Identifying the lenders that are more likely to offer you a lower interest rate could be useful too. According to the Bank of England data, there are around 340 regulated mortgage lenders and administrators operating in the UK. So, shopping around might lead to a deal that’s better suited to you.

Understanding the lending criteria of each lender can be difficult, but may be important for assessing how likely they are to approve your application. An independent mortgage adviser could search the market on your behalf to find a lender that may be right for you – it could make securing your new property or mortgage smoother and less stressful.

Contact us to talk about your mortgage needs

If you need to find a mortgage that suits you, we could help. We’ll work with you to understand your needs and provide support throughout the mortgage application process. Please contact us to arrange a meeting.

Please note:

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Interest rates and inflation continued to affect markets around the world in April 2024. Read on to find out what else may have affected investment markets and your portfolio in April.

Expectations of interest rate cuts were good news for gold. Investors who feared falling interest rates would lead to lower returns on cash and government bonds purchased more gold. It led to the asset hitting a record high on 8 April at $2,535 (£3,171) an ounce.

Yet, while many experts are predicting that interest rates will fall, Kristalina Georgieva, the managing director of the International Monetary Fund, warned that central banks must resist pressure to cut them too soon.

UK

The UK ended 2023 in a technical recession – defined as two consecutive quarters of economic contraction. The latest figures suggest the UK is already out of the recession. According to the Office for National Statistics, GDP grew slightly by 0.1% in February 2024, following 0.3% growth in January.

UK inflation data was also positive. Inflation in the 12 months to March 2024 was 3.2%. While there’s still some way to go before reaching the Bank of England’s (BoE) 2% target, it’s the lowest figure recorded since September 2021.

Clare Lombardelli, the newly appointed BoE deputy governor, tempered the news by adding that inflation is likely to be “bumpy” as pricing behaviour isn’t smooth. However, she added that the overall experience for people should be lower and more predictable inflation.

On the back of good news and with a general election looming this year, chancellor Jeremy Hunt told the Financial Times that he’d like to cut taxes in the autumn fiscal statement “if we can”.

While inflation overall is falling, business group British Chamber of Commerce has warned that new Brexit fees and checks could lead to higher food prices in the UK. Importers of animal products from the EU will face an additional charge from 30 April 2024 and new checks will be applied from October.

Data from S&P Global’s Purchasing Managers’ Index (PMI) also indicates that growth will continue. The service sector continued to expand in March and the construction industry returned to growth thanks to increased work in infrastructure projects.

Official data shows average wages, excluding bonuses, increased by around 6% between December 2023 and February 2024. Once inflation is factored in, average wages increased by 2.1% in real terms.

Yet, other information suggests many households will continue to financially struggle. A BoE report suggests it expects the number of households and small businesses to default on debt to rise this summer.

A report from consultancy firm KPMG also found that half of consumers are cutting back on non-essential spending. In fact, just 3% of consumers said they had been able to spend more in the first quarter of 2024. Eating out is the most likely expense to be cut from budgets, which could negatively affect the hospitality sector.

In April, the FTSE 100 proved why investors need to be prepared to weather market volatility.

On 12 April, the index of the 100 largest companies on the London Stock Exchange closed at the highest level for over a year. News that the UK is likely to have exited a recession led to the index rising by 0.9%.

However, just days later, on 16 April, the index tumbled by 1.95% and almost every stock on the index was in the red, with mining companies and banks suffering the largest falls. The downturn was linked to a market adjustment after the US Federal Reserve said it may not cut interest rates as soon as it hoped.

Then there was another turn as the FTSE 100 hit a record high of 8,068 points on 23 April due to expectations that the BoE will start cutting interest rates this year and fears about escalating tensions in the Middle East eased.

The ups and downs serve as useful reminders to focus on the long-term performance of investments rather than short-term market movements.

Europe

Inflation across the eurozone fell by more than expected to 2.4% in the 12 months to March 2024. Despite optimism that interest rates would be cut, the European Central Bank opted to hold rates. Yet, the bank did signal that, if inflation continues to fall, it could cut them in the summer.

PMI data indicates that the eurozone economy returned to growth for the first time since May 2023. The positive figures were driven by stronger than expected output from the service sector, with Spain and Italy providing the strongest boost. However, the two largest economies in the bloc, Germany and France, contracted.

Some EU countries, including Italy and France, could be put under an infringement order procedure for operating budgets with deficits that breach the EU’s rules. Usually, governments have to keep budget deficits below 3% of GDP. The cap was set aside during the Covid-19 pandemic but could be implemented again, which might place pressure on public spending plans.

Similar to the UK, European indexes suffered on 16 April when the Federal Reserve indicated it wouldn’t cut interest rates soon. France’s CAC index fell 1.8% and Spain’s IBEX was down 1.2%.

US

The US private sector added 40,000 more jobs than expected in March 2024, with businesses hiring an additional 184,000 employees. Job growth is one of the measures the Federal Reserve will consider when deciding whether to cut interest rates, so the data led to speculation that rates would fall soon.

Yet, when the rate of inflation was released, it dampened the optimism. In the 12 months to March 2024, inflation was 3.5%, an increase when compared to the 3.2% recorded a month earlier.

Investment markets did benefit when fears that Iran’s attack on Israel would lead to an escalation in the Middle East didn’t materialise. On 15 April, the Dow Jones saw a rise of 0.9%, while the S&P 500 increased by 0.7%, and tech-focused index Nasdaq was up 0.6%.

Asia

China beat its GDP forecast when it posted growth of 5.3% for January to March 2024 when compared to a year earlier. However, China’s National Bureau of Statistics recognised that growth could be hampered. The organisation said the external environment was becoming more “complex, severe, and uncertain”.

Indeed, the country faced several headwinds in April.

First, credit rating agency Fitch has cut the outlook of China’s debt from “stable” to “negative”, as it said the country was facing uncertain economic prospects.

Then, US treasury secretary Janet Yellen voiced concerns that China’s excess manufacturing capital could cause global fallout. She said China was too big to rely on exports for rapid growth and excess capacity was putting pressure on other economies.

While Yellen didn’t make any announcements about trade tariffs on Chinese goods, she said she would not rule out taking more action to protect the US economy from Chinese imports.

Please note:

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The psychological thriller Ripley has received critical praise for its cinematography and writing. If you’ve been on the edge of your seat watching the story unfold, you might have thought “I’d never fall for the tactics of a con artist”, but a scam carried out today uses many of the same ploys and relies on catching people off guard.

Ripley is the latest adaption of Patricia Highsmith’s 1955 novel The Talented Mr. Ripley. In 1950s New York, con man Tom Ripley is hired by a wealthy man to convince his son to return home from Italy. As he embarks on a trip to Europe, Ripley starts building a complex life of deceit and fraud.

It’s not only those who come across Ripley that need to be careful. Indeed, there are many “Ripleys” scamming victims today – according to a report in Money Marketing, more than £2.6 billion was stolen between 2020 and 2023 through investment scams alone. More than 98,500 victims reported crimes, with an average loss of £26,773.

So, here are some valuable lessons you could learn from Ripley to protect your wealth.

Appearances can be deceiving

Ripley gets the opportunity to carry out a scam after Herbert Greenleaf mistakes him for a friend of his son, and then he takes up the charade. Ripley uses his ruthless charm and skills to build a rapport with others to get what he wants.

It’s an important reminder that people aren’t always who they seem. If you receive contact out of the blue, a measure of caution could help you spot a potential scam.

It’s not just people you need to be wary of. A growing number of scammers are posing as legitimate companies.

Which? found that more than 2,000 suspected banking copycat websites were reported in 2023. These websites might look genuine and could dupe you into handing over sensitive information.

Fraudsters might also use text messages, emails, or other forms of communication in a way that looks similar to real organisations to build up a sense of trust.

If you’re unsure if the person you’re speaking to is who they claim to be, don’t be afraid to end the contact and directly call the organisation using the details listed on the Financial Conduct Authority’s register. A legitimate firm will understand why you’re being cautious.

Protect your personal details

Scammers don’t always need to contact you to take control of your assets. If they get hold of your personal information, it might be possible for them to carry out identity theft.

In Ripley, Tom assumes the identity of another person to gain access to their trust fund and enjoy a lavish lifestyle. Modern fraudsters who have sensitive information could gain control of your bank accounts and other assets. Criminals may even take out credit in your name.

Keeping personal details such as your date of birth, current and previous addresses, and passwords secure could reduce the risk of identity theft. If you’re getting rid of old documents, shredding or destroying them before putting them in the bin may be a useful step to take too.

Victims of a scam might not get a happy ending

In the novel, Ripley comes out on top at the end – he’s rich and plans to continue his travels in Europe, although he’s plagued by worries that the consequences of his actions will come back to haunt him.

However, The Talented Mr. Ripley doesn’t have a happy ending for the victims of his scams, and, sadly, that can all too often be the case in real life. Tracking down scammers can be impossible, and you might not recover the assets that have been stolen.

While some banks or other financial institutions might offer you a refund if you fall victim to a scam, they often don’t have to, and many are left out of pocket. Indeed, according to UK Finance, in the first half of 2023, around a third of people who lost money to authorised push payment scams didn’t receive their money back.

So, taking a cautious approach if you’re offered a financial opportunity, even if it appears genuine, is usually a good idea.

You should be particularly cautious if you’ve been approached out of the blue and the person is putting pressure on you to act quickly – both these potential red flags could signal it’s a scam.

Contact us to talk about your financial plan

Feeling confident about your financial plan could mean you’re less likely to fall victim to a scammer. You could also contact us if you’re unsure if a financial opportunity you’re considering is legitimate or right for you. Please contact us to arrange a meeting.

Please note:

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

A will is an important way of outlining what you’d like to happen to your assets when you pass away. Yet, figures suggest will disputes are on the rise. If you’re worried about potential conflicts when you pass away, read on to discover some useful steps you might want to take.

According to a report in the Guardian, thousands of families have been embroiled in disputes dubbed “ruinously expensive” by solicitors. As well as the potential legal costs, court cases can be emotionally draining and place pressure on your loved ones.

In 2021/22, 195 disputes went to court, up from 145 in 2017. While the figure is low, it’s thought to be just the tip of the iceberg as many cases are settled out of court. Indeed, the report suggests that as many as 10,000 families in England and Wales are disputing wills every year.

A dispute could mean your assets aren’t passed on in a way that aligns with your wishes, or even that someone who you wanted to benefit from your estate is overlooked. If it’s a situation you’re worried about, here are seven steps you could take to reduce the risk of your will being overturned.

1. Speak to loved ones about your wishes

Speaking to your family about your wishes can be difficult. Nonetheless, it could be an important conversation and mean there are no surprises when your will is read, which could reduce the chance of a dispute arising.

If someone in your life discovers they will inherit less than expected or are not a beneficiary in your will after your passing, they may be more likely to react negatively – especially if they’re also grieving your loss. Discussing it during your lifetime could give them time to come to terms with the decision, as well as allow you to explain your reasons.

2. Write a letter of wishes

Similarly, you can write a letter of wishes that could be read alongside your will. This provides an opportunity to explain why you’ve made certain decisions, which could be useful for beneficiaries, the executor of your estate, and, if a dispute arises, the court.

You should take care that the letter of wishes doesn’t contradict what’s written in your will – you may want to ask a solicitor to review it to minimise mistakes.

3. Include a no-contest clause in your will

You could choose to add a no-contest clause to your will. It doesn’t mean that someone can’t raise a dispute, but it can act as a deterrent. Essentially, the clause means that if someone did challenge your will and lose their dispute, they would forfeit any inheritance they may have been entitled to.

So, if you’re worried that a beneficiary could challenge your will to try and receive a larger proportion of your assets, adding a no-contest clause might be useful.

4. Hire a solicitor to write your will

You can write your will yourself without any professional legal support. Yet, a solicitor could provide essential guidance and check the language of your will.

For example, if you’ve used vague or contradictory phrases, there could be a greater opportunity for disputes to arise. It could be particularly important if your estate or plans are complex. Choosing to hire a solicitor may help you feel more confident that your wishes will be carried out.

5. Ask a medical practitioner to witness your will

For your will to be valid, it must be made or acknowledged in the presence of two witnesses. To act as a witness, a person must:

Be aged over 18 (16 in Scotland)
Have the mental capacity to understand what they are signing
Not be related to the person making the will or have a personal interest in the will.

However, if you’re worried that your will could be contested on medical grounds, you might want to ask a medical practitioner, such as your GP, to witness it. This could prevent later accusations that you weren’t of sound mind when writing your will.

6. Regularly review your will

One of the reasons why a dispute may occur is that your beneficiaries don’t believe your will reflects your circumstances when you pass away. So, a regular review might be useful.

Going over your will every five years or following major life events could ensure it remains up-to-date. For example, you might want to make changes after you welcome a new grandchild into the family, remarry, or your wealth changes significantly.

7. Store your will in a safe place

Finally, make sure your will is stored in a safe place and your executor knows where it is. If you’ve rewritten your will, be sure to destroy previous ones to avoid potential confusion.

Understanding your estate could help you make decisions about your will

If you’re deciding how to distribute your assets or need to update your will, understanding your estate could be an important step. Calculating the value of various assets and how they might change during your lifetime could alter how you want to pass them on. Please contact us to talk about your will and wider estate plan.

Please note:

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate estate planning.

Financial planning can help you to reach your life goals, and give you and your loved ones security and peace of mind. Over the next few months, you can read our blog to discover exactly why a financial plan that’s tailored to you can add value – and we’ll start with the financial benefits.

When you think about seeking financial advice, one of the first advantages that may come to mind is the opportunity to grow your wealth. Making the most of your assets could be essential for reaching your aspirations, from retiring early to passing on a nest egg to the next generation.

There are many reasons why working with a financial planner could help increase the value of your assets, including these five.

1. A financial plan starts by setting out your goals

A goal that simply states “I want to grow the amount I have in savings and investments” is vague. Poorly defined goals may make it difficult to assess if you’re on the right path and determine if the steps you’re taking are successful.

An effective financial plan starts by understanding what you want to achieve and how the value of your assets might need to change to turn it into a reality.

Let’s say you want to ensure your retirement is secure. A financial plan could help you understand what income you’d need to generate in retirement to live the lifestyle you want, and how you’d need to grow your assets during your working life. So, your goal might become: “I want to be able to retire at 60, and to do this I need £1 million in my pension fund.”

With a clearly defined target, you might be in a better position to increase the value of your assets and it could motivate you to stay on track.

2. Identify which steps could lead to the outcome you want

Once you have a clear goal, you’ll often need to break down the steps you’ll need to take to reach it. When doing this you might have questions about which approach will help you to make the most of your money.

For instance, if your goal is to save on behalf of your child so you can pass a nest egg on to them when they’re an adult, you might have questions like:

How much do I need to set aside each month to reach my target?
Should I save for my child through a Junior ISA or savings account?
Does it make sense to hold the money in cash or to invest it?
What steps can I take to ensure the nest egg isn’t wasted?

The answers will depend on your circumstances and priorities. For example, if you’ll be building the nest egg over the next decade, investing the money could make sense as you have a long time frame. On the other hand, if you plan to give your child the money in two years to support them through university, cash might be more suitable.

Choosing the “right” approach for you could provide security or mean you’re able to reach your target sooner. A financial planner can work with you to understand your options and how they might affect the outcome.

3. A financial planner could help you understand your risk profile

If you’re seeking to grow the value of your assets, it might involve taking some risk.

For some people, taking investment risk can be scary, and they might even put off investing altogether. Indeed, according to an Aviva survey, 18% of women who don’t invest said their decision was due to risk.

No one wants to see the value of their assets fall during a downturn, but if you want to grow your wealth in real terms, risk might be necessary.

The money you hold in a cash account may seem “safe” but once you factor in inflation, it’s likely the value of your savings in real terms is falling. This is because as the cost of goods and services rises, the spending power of the cash will fall.

Managing fears to understand what risk is appropriate for you and your goals can be difficult, but working with a financial planner could give you confidence and ultimately lead to your wealth growing.

4. A financial planner could determine which tax allowances and reliefs to use

Taking advantage of appropriate allowances and reliefs could reduce your tax bill and provide a boost to your wealth.

However, tax rules can be complex and difficult to understand how they apply to your situation. A financial planner could add value here by identifying how to use allowances and reliefs to make the most of your assets.

As well as understanding which reliefs or allowances make sense for you, it’s important to keep on top of changes. For instance, in 2024/25, there have been cuts to the amount you can earn from dividends and profits when selling assets before tax is due. If you missed the announcement, you could face a larger tax bill than expected.

Regular financial reviews could ensure your financial plan reflects current legislation and highlight when new opportunities might be suitable for you.

5. A financial planner could highlight potentially harmful reactions

How you respond to news or challenges could affect your financial plan. Even the best-laid plans could be knocked off course if you make a knee-jerk decision.

If your financial plan involves investing, how you respond to market downturns or short-term volatility could have an impact. In response to the value of your investment falling, you might be tempted to sell. However, you could be turning paper losses into a reality, and you may miss out on the market bouncing back and delivering potential returns over a long-term time frame.

While investment returns cannot be guaranteed, historically, markets have delivered growth over the long term. So, reacting to news could mean that your investment returns fall short of expectations.

Working with a financial planner could help you identify behaviour that could harm your progress towards your financial goals and the value of your assets.

The intangible benefits of effective financial planning could be just as valuable

While growing your wealth might be one of the key reasons you initially seek financial advice, the intangible benefits could be just as important. Among them might be an improved sense of wellbeing or a greater focus on your goals, which could mean you’re more likely to reach them.

Read our blog next month to take a closer look at why the emotional benefits of financial advice add value too.

If you’d like to talk about how we could support your financial and lifestyle goals, please contact us. We’ll work with you to create a tailored plan that could help you grow your wealth and feel more confident about the future.

Please note:

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate tax planning.