Investment market update: April 2024 Investments 21/05/2024 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.
How to beat the potential harmful effects of “loss aversion” on your wealth Investments 21/05/2024 “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.
The announcement of the new UK ISA marks 25 years of tax-efficient savings Investments 10/04/2024 Since they were introduced in 1999, ISAs have become a finance staple for many households thanks to providing a tax-efficient way to save and invest. As ISAs turn 25, chancellor Jeremy Hunt unveiled plans to launch a new UK ISA and has previously announced changes that could provide you with more flexibility. Read on to find out what you need to know about ISAs. The UK ISA could increase your allowance by £5,000 The government will carry out a consultation about the introduction of the UK ISA until June 2024. So, there are currently only a few details available. In the March 2024 Budget, the chancellor said the UK ISA would have a new £5,000 annual allowance, in addition to the existing ISA allowance, which is £20,000 in 2024/25. It will be a type of Stocks and Shares ISA that’s designed to encourage investment in UK companies.
Running out of money tops retirement concerns, but financial planning could bring peace of mind Retirement 10/04/2024 If you’re concerned about running out of money during retirement, you’re not alone. In fact, it’s one of the top financial concerns in the UK. Being proactive and working with a financial planner to create a retirement plan could offer you peace of mind. Read on to find out why. In an Aegon survey, 7 in 10 financial advisers said their clients’ number one concern was outliving their savings. The good news is that by seeking the support of a finance professional, you can understand what income is sustainable for you and the lifestyle it might afford. High inflation is playing a role in fears of running out of money When you retire, you may have a pension pot that you could use to create an income. However, as you may be responsible for managing withdrawals, you might worry about taking too much too soon.
A worrying 2 in 5 wealthy individuals have fallen victim to a financial scam Protection 26/03/2024 A recent survey reported by Professional Adviser revealed that 2 in 5 wealthy individuals have been the victim of financial crime. Of the 2,000 people with assets worth more than £250,000 who were surveyed, 41% of them reported they had been scammed, with more than a third saying they had fallen victim in the last six months. 20% of the victims lost money through investment scams, while 15% were defrauded by pension scams. Pension and investment fraud are two common methods of scamming affluent people. Read on to find out how these scams work, some red flags to watch out for, and what you can do if you find yourself the victim of financial fraud. Investment scams Investment scams will attempt to make you part with your wealth, either into a fake scheme or one that is designed to make you pay more than the potential returns.
