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 2010

Whilst the first quarter of 2009 was difficult, the UK stock-market rebounded from the 6 year low of 3rd March with an increase to the end of the year from that point of 56% and some 26% for the year overall. Large market fluctuations are now less frequent than in 2008 or 2009 but they have not yet subsided and investor sentiment remains fragile. There may well be further roller coaster times for the market going forward, but these are not expected to be as severe as those experienced over the course of the last two and a half years.

The most pressing problem for the UK government will be how it can convince the global financial community of a realistic way of dealing with the large level of sovereign debt. Failure to do so may have a severe effect on the economy and everyday living as well as stock-market performance. Our feeling is that the chance of such an outcome for the UK is unlikely but still a possibility.

We are of the view that over the course of the year the return to muted growth is the most likely outcome and expect bank base rates to rise from the current historically low level to around 2% by the end of 2010, with stock-market growth of circa 10% anticipated for the year overall.

We continue to hold the view that investment at this time, over a two to four year time horizon, should prove to be rewarding.

ISA Allowance

For the current fiscal year, for UK residents aged 50 or over, the level was raised in October 2009 from £7,200 to £10,200 – a massive increase of over 40%. From fiscal year 2010 -2011 the eligibility will be extended to all others who qualify for ISA investment. This is an allowance which is available to you for use during the fiscal year - you cannot carry it over to another year.

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.