"HatTip" - U.S Election: Nothing To See Here

What Happens Today & Tomorrow Means Nothing

Written by Nick Lincoln, IFA

The US election looks to many (including me) like a choice between the Devil and the deep blue sea.

My extensive research concludes that either Trump or Clinton will win: beyond that, everything is uncertain. Whichever way the election goes, world stock markets could well have kittens, to use a technical phrase.

Such times can be deeply unsettling - nobody enjoys seeing the value of their investments fall, however temporarily. But most of my clients' portfolios span decades. For many families, their financial plans are powered by investments that will likely extend over 30 years or more.

Long Journeys Are Made Up of Lots of Little Steps

Click above to open presentation in new window

In a 30 year period, there are 10,950 individual days. Think about that for a second. In that context, how important (or not) are the next two or so days?

In time, the US election will be just another "event", just another (potential) blip. Until the next one comes along, as it invariably will.

The short presentation to the right (or click here) may help put the above ramblings into context. Time is a great healer, especially with your investments.

In terms of your financial well-being, what happens today and tomorrow is - honestly - pretty irrelevant. What happens over the decades is what matters.

If your financial plan spans decades then time is on your side. Let time work its magic. 

"HatTip" - Don't Put All Your Eggs In One House

Funding Your Retirement Solely by Downsizing the Family Home: A Dangerous Game

Written by Nick Lincoln, IFA

"According to a recent survey from Barings, around three million people are planning to fund their retirement solely from the proceeds of 'downsizing' their family home."

The above is from an article by former Pensions Minister Steve Webb. Mr Webb was unique for a Pensions Minister in that:

1. He generally knew his brief.
2. He held the post for five years. Before his tenure "The Blair Brown Project" truly was a horror story: between 2001 to 2010 alone, there were eight (!) Secretaries of State for Work and Pensions.

Mr Webb's article was on the subject of downsizing the family home. Downsizing involves selling your current house to purchase a smaller, less expensive one, and in so doing realising a chunk of capital. Downsizing is a common theme in discussions with our retired clients. However, it is only

"HatTip" - Brexit!

Below is a cut 'n' paste from an email sent to all clients this morning.

We all get way too many emails. This is one of the reasons I don't bombard you with them. However, we live in interesting and unsettling times presently, and I hope you forgive this unsolicited entry to your "Inbox"!

Obviously, I am touching base with you on the back of last Thursday's EU Referendum result. Whichever way you voted, the outcome is what it is.

Let's quickly recap: UK markets, sterling etc went up strongly a week or so before 23rd June 2016. Although no-one really knows what individual factors drive markets,

"HatTip" - Mother to Son: "I have no idea what you do."

When your mum asks you how your clients are handling the bad news around the markets and you answer "Very well: they have been silent", I guess you are asking for trouble.

But that is why I am called Nick "Trouble Is My Middle Name" Lincoln: brave to a fault, I go where others fear to tread. And if antagonising your mother is not a sure fire route to perdition then I do not know what is.

Now I do not rile her deliberately; I am fond of my mother - she has been like a parent to me. But she

"HatTip" - "A Tax On Stupidity"

It remains one of life's oddities that the very people who must invest are typically those least inclined to do so. Many such people choose to shun investment "risk", preferring instead the illusory safety of cash.

This is probably very true at the moment: markets are apparently volatile; one can almost hear the waves of relief as nervous "investors" sell their portfolios to cash until things "settle down".