What's Happening in the World of Personal Finance?

Aveton Gifford Associates - Chartered Financial Planners

Official recognition is a welcome benefit to any business – especially when you’re accepted as achieving the highest level in your field. Charter status for firms was introduced recently as a means of highlighting the credentials of a firm as a whole and we are proud to be one of the first firms in Scotland to have been awarded Chartered Financial Planner status. Indeed we remain one of a handful of companies in this country to have been so recognised.

So if you’re looking for expert financial advice, then talk to a company with impeccable credentials (Click here to contact us.)

UK Outlook for 2011

Interest rates have been held at a historically low level for some time now and it is unlikely that there will any significant change over the course of the next twelve months. Whilst this has provided some respite for borrowers it has been of little benefit to savers.

The re-introduction of 5 year Index-linked National Savings certificates earlier this year offered a means of at least preserving the purchasing power of cash funds. The conundrum for investors is the level of risk that needs to be taken when looking to obtain a better return. Corporate Bond funds have been heavily promoted over the course of the last year or so, however, the security of capital is not guaranteed. It remains important, therefore, that you seek professional advice prior to committing funds.

Many of the major UK Companies have produced excellent results this year, however, events in both America and the Eurozone continue to impede market progress. The knock-on effect is that economic recovery has been slower than anticipated and there will be more pain to endure before sustainable consumer confidence returns.

The threat of a double-dip recession has always hovered in the background, however, the crises in America and the Eurozone have heightened this possibility. It remains to be seen if this is merely a temporary hiccup or will it have a more enduring impact on global growth.

We believe that, assuming some semblance of order returns to the market, growth of circa 10%, measured by the FTSE100, is achievable for the calendar year.

ISA Allowance

The ISA allowance for 2011-12 is £10,680, which is available for use each fiscal year and if not used then it is lost.

Since it is always difficult to time investment with any certainty, the most effective way to invest can be to drip feed money in on a monthly basis – this reduces investment risk by buying at different prices over a period of time. It is particularly beneficial when market volatility is an issue, and is known as pound cost averaging. This is an approach to which we subscribe and can therefore recommend.