Business As Usual?
11th May 2020
The ongoing coronavirus pandemic is a huge concern for us all and, following the Prime Minister's announcement yesterday, we thought it prudent to reconfirm that Rowley Turton is still open for business and to consider the key financial concerns people may have.
Jobs and the economy
With the current lockdown, economic uncertainty, and with many people having been furloughed, jobs and the economy are both concerns.
However, economists differ on whether impacts will be short-term, i.e. a V-shaped recession, or if the impacts will have longer ramifications like the banking crisis.
The good news is that the UK economy was in relatively good shape, with record employment levels, until the Coronavirus hit our shores, and we're inclined to side with the optimistic economists that the UK economy will recover quickly from the current situation.
However, if your business or job has been negatively affected by the current situation this may have a longer-term impact on your own financial planning and we are already working with some clients to reassess their own financial planning as a result. If you feel that your own planning needs revisiting please contact us.
The markets fell as Coronavirus spread across the globe and varying degrees of 'lockdown' were announced by different governments.
Whilst the falls were generally not as severe as people saw during the banking crisis the falls certainly happened quicker this time, and this may have worried some investors more than before.
At times like this, it's important to remember that market falls are part and parcel of investing. They are arguably the price that you pay for long-term returns.
During these periods, it's generally best to remain calm, ensure that your portfolio is still appropriate for you, and, unless you have any short-term needs for the money, sit tight as your dream of a comfortable retirement is unlikely to be affected but the current issues. That said, further investment falls are always a possibility and, if you have any concerns about this, please feel contact us to discuss your portfolio and its appropriateness for you.
Protection (Life Assurance, Critical Illness, and Income Protection)
The current Coronavirus crisis is, unfortunately, a reminder of our own mortality and many people may now be considering what would happen to themselves, and their family, should the worst happen.
Also, with the current job uncertainty, if you have any protection benefits via your employment such as Death in Service, etc. you should consider how secure those benefits are.
Unfortunately, one of the consequences of the current situation is that medical underwriting is more difficult, and the service standards of some insurers have slipped, so new cover may be more difficult to obtain. The good news is that cover is still available, and, of course, we'd be happy to review your current position, advise on existing protection cover and arrange any additional cover you required.
Whilst thankfully crime overall has fallen during the crisis, there has been an increase in the number of financial scams – especially emails and cold calling. Consequently, people need to be extra vigilant, or to use the government's new phrase 'Stay Alert'. Do not respond to any letters, emails, calls, texts, etc. which you are unsure about, and, if in doubt, please contact us for a second opinion.
What about Rowley Turton? Will they still be there to look after me and my family?
Rest assured, we're in a great position to continue caring for our clients.
Our financial strength is one of the things that clients have commented on as being an important reason for choosing to appoint us to look after their affairs. They wanted to be sure that we would be there in five, ten, or even twenty years' time to continue looking after their financial affairs and often also looking after their children's and their grandchildren's affairs.
We pride ourselves on that financial strength, having retained a significant proportion of our profits for the last 24 years, in order to build our own reserves to weather financial storms such as these. Consequently, not only are we confident about the present, but we're also committed to the future, having signed a lease on a new larger office to enable us to advise even more families moving forward.
We remain open, working remotely in line with government guidance, harnessing our expertise to meet your needs during these difficult times. If you require any further assistance, please contact us.