Investment Insights
Investments do rise and do fall in value and we strongly advise that professional advice is taken before investing your money
Buy what you understand, understand what you buy, sounds easy, yeah?
It is said that about a quarter of the population have a holding in some sort of Crypto currency and have been caught up in the hype of bitcoin, some will be feeling a bit wheezy after it drops to less than half its value at the peak, and as an outside observer this feels like people are capitulating and giving up. Let’s be fair the technology that drives bitcoin (blockchain) will be an important technology, but bitcoin as a store of value, well, who are you kidding, this is still early days and very much the Wild West. Hopefully those that have been affected can lick their wounds until the next speculative ramp and maybe learn their lesson, life is cruel… Lastly, a fool and his money are lucky to get together, protect your wealth and learn that only you can protect you, not all that glistens is gold. 9/6/2022 I Have Changed Your Name...I wanted to share a story with you so that you can protect yourself from falling into the same trap... Having recently met with a lovely couple, it occurred to me that there seems to be a growing trend which I fear could be setting people up for financial failure. What seems to be happening is that the kids have grown-up, the husband is hard at work (or perhaps the wife) and the boss of the house is following their passion be it as a yoga teacher, artist, actor, you get the gist. This will typically produce only a minimum income but the thinking is that with less bills, hey it works. It’s not long into the conversation that the one who is semi-retired says that their husband / wife also wants to retire sooner rather than later and then they are going to go on lots of holidays and live a great life. At this stage I start to feel uncomfortable as there is so much excitement and why not, it’s the perfect life! So, why are you feeling uncomfortable you may ask? Well, in our discussion they have told me how much they think things are going to cost and other than a few shekels the cupboard is bare. So, I ask "how are you going to finance this perfect life?" "Oh, we thought we could use our pension which has got £100k in it, so we need you to tell us how to invest it so we can retire!" I hate to be the one to spoil the party but let’s just say if your heart's desire is to retire and live all those dreams don’t leave it too late - I am a financial planner not a magician! Consider that it is from the age of 50 when you can bank more capital for your next phase of life’s journey as you are in peak earnings territory and one partner taking a lower paying role at that crucial point might sound great but will not be financially contributing to the next phase of financial freedom and this puts the long-term picture in jeopardy. |
AuthorSteven is a Fellow of the Personal Finance Society, whom is passionate about investing and getting the most from your money. Archives
February 2024
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Steven Mufti & Associates Ltd is authorised and regulated by the Financial Conduct Authority.
Financial Services Register Number 607613. Registered in England & Wales, Company number 8664240. Registered Office address: 27 Armitage Court, Ascot, Berkshire, SL5 9TA. Telephone: 01344 623811 Email: advice@smawm.co.uk The guidance and or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted to customers in the UK. The FCA does not regulate taxation advice. The value of your investments may fall as well as rise. Financial Conduct Authority register: https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000NMlk7AAD |
16/6/2022
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