So
with the holiday season upon us, many will be seeking to warm their
backs in sunnier climes, hoping to forget all the bad news being fed to
us on a daily basis by the mainstream media. However, on their return
to the daily grind, they will be confronted with the same old issues of
earning enough to pay the bills and hopefully setting aside a bit for
next years temporary relief in the sun! This leads me on to the thought
of how hard we all work for such a relatively small return on our
efforts when viewed after we have paid all our bills and living costs.
I suspect that the current economic down-turn has led many of us to
question what our lives are really all about!!
The
work that I do is often undervalued by the public. After all it is very
easy to lump me (incorrectly) into the same world as the banksters and
other scammers! However the reality is that as a consequence of the
advice that I have offered in the past, many of my clients will
continue to have their mortgage paid when they are told by their
employers that they need not bother arriving at their job the following
week! This may only offer temporary relief, but it is a very welcome
benefit if you find yourself in that situation!
Many
with capital are dismayed by the returns on their deposits following
the collapse in interest rates so it was very heartening for me when I
reviewed an existing client portfolio yesterday, after investing at
the end of May last year. We totally avoided equities in the belief
that a US collapse was imminent and which would be devasting for share
values. The portfolio was divided into quarters with holdings in
alternative investments. The returns from each element of the
portfolio have been as follows, -0.3%, +8.9%, -10.7% and finally a
return of 43.9% (a timber fund) all of which gave rise to an overall
return across 14 months of 5.83% after charges (equivilent to 7.29%
gross). I am optomistic that our clients will be more than happy when
we review their investments with them on Thursday evening, particularly
when viewed against the backdrop of the past 12 months!
Much
of our work at the moment is assisting clients in reducing their
outgoings in the present difficult environment. Many people have
policies that have been sold to them by their banks and
include buildings and contents policies, life and/or critical illness
policies as well as mortgage protection. By reviewing these policies on
their behalf we are finding that we can reduce premiums substantially
and in many cases offer even better protection!!
In
conclusion I have to say that I continue to be pessimistic regarding
the future. Do not be duped by talk of green shoots from our
politicians or an over emphasis on a rising FTSE 100. Concerns over the
dollar, the continuing threat of an attack on Iran and the inevitabilty
of inflation should lead you to my doorstep where it costs nothing to
talk and there is never any obligation to use our services!!
