An independent (financial adviser’s) view

I miss a week, and wouldn’t you just know it, he calls a bloomin’ election. Yes, very nice, thank you, a couple of beach days with family and dog in Devon, then four more walking a bit of Coast Path with actual school friends. If you still have any, you’ll know that the conversation goes straight back to whenever it was, and you can tell the same old stories without boring or being bored. The same cannot be said of The Campaign to date. Same old stories, yes, still interesting, alas, no. And many, I’m sure, will noted the irony of the phrase ‘Micky Mouse Degrees’: that we wouldn’t have a Micky Mouse without arty-farty cartoon illustrators and the like. Anyway, whatever we think of them, let’s be glad that none of our potential PMs have, as far as we know, dated porn stars nor been in court recently. And chins up, only four and a half weeks to go.

“Long live the 60/40 portfolio?”

If you’re a?‘Balanced’ investor,?which, at ‘medium risk’ is, in our experience, where most are comfortable, you will more than likely have what we helpfully call a 60/40 Portfolio. It means that, usually, up to 60% of your money will be invested in shares, the other 40%, usually in ‘fixed interest’ securities, such as government or corporate bonds, loans to companies or to Rishi & Co. The latter are, usually again, less volatile or risky than shares, so give the balance to balanced funds. This worked pretty well until September 2022, when the value of those bonds was, not trashed but Trussed. The balance is back now. I’d say the lesson is, not that we should abandon the wisdom of ages, rather make sure we and you hang on in there as it, usually again, is and will be alright in the end.

“Over half of parents risk financial security due to lack of protection”

In days of yore, when most of the older generation of financial advisers were selling life insurance, those with young families were told, often in no uncertain terms, that they should have protection in place. ‘If you or your wife died tomorrow, how would whoever’s left cope financially?’ ‘How long would they pay you if you’re off sick? Could you still pay the mortgage?’ And so on. I doubt many are asking those questions today, and they’re questions not many wish to ask themselves. Most should have mortgage protection, life insurance to provide cash on death to keep the show on the road, and income protection unless they have a very generous employer. At the very least. Oh, and don’t forget to make a will.

“Adviser slams sustainability as ‘overdone and ludicrous'”

There are many reasons/excuses for not saving the planet. ‘Why bother recycling, it all gets shipped to China and dumped in the sea anyway?’ ‘How does an electric car help, African children go down mines for the stuff the batteries need and they use just as much steel?’ ‘Giving up meat will put all of the farmes out of business, won’t it? If we have hotter summers, we won’t have to fly to Spain, that’ll save the planet, won’t it?’ And, from a financial adviser, apparently ‘Clients don’t give a monkey’s about sustainability and ESG’ (environmental/social/governance vetted investments). Well, not in our experience and that of many others. If you actually bother to ask, a majority will actually want their money to do good things, or at least avoid doing harm. And shouldn’t we always apply the ‘just one life’ principle? Otherwise nothing will ever change; nor would ever have changed.

“Review of pension freedoms ‘inevitable’ under Labour govt”

Pronouncements on the detail of pensions are never likely to be election winners or swayers. When the manifestos finally arrive, my guess they’ll say no more than that certain aspects will be ‘reviewed’ with ‘consultation’. Labour did oppose pension freedoms when they were sprung upon them in G Osborne’s 2015 budget but have since ‘read the room’ and seen how popular they are. Similarly, I can’t see further tinkering with the lifetime allowance being a priority. But one things for sure, they will not be able to resist a fairly major tinkering with a fair number of pension regulations; because no government or chancellor ever has. And that whatever they do will make life still more complicated; because it always does.

All my boxes ticked, this one’s quirky and British par excellence and ‘inspired by a true story’. Many of the good citizens of 1920s Littlehampton receive the titular letters, all very sweary denunciations of their character, real or supposed. These include the strict chapel-going parents of stay-at-home spinster Olivia Coleman and the blame, with no evidence, falls on her sweary, single-parent Irish neighbour, the brilliant Jessie Buckley: ‘Why would I write her letters when I can f———g tell her what I think in the street?’ There are plenty of eccentric characters, including the prosecuting and assumptive local police; and plenty of swearing of an extreme nature from mouths of all sorts. Some locals’ detective work uncovers the actual culprit in the nick of time, and it all becomes and became a real national, Daily Mail-style scandal. Great fun.