Student life is full of “firsts” including, for many, living independently and managing their own money for the first time. Learning to budget, save, and spend responsibly can take time and may come with some trial and error.

What’s more, having lived through two years of the cost of living crisis, students are sadly facing higher living expenses. UK Parliament reports that in 2023, the average student’s monthly outgoings rose by 17%, from £924 in 2022 to £1,078. Plus, the BBC says that 1.5 million people are now in more than £50,000 of student debt, putting pressure on their earnings after they graduate.

As a parent or grandparent, you may have offered the students in your family some financial support. This could come in the form of paying tuition fees, helping with accommodation costs, or giving them a monthly allowance to supplement the maintenance loan they might receive from the government.

If so, keep reading to discover two aspects of offering financial help to a student that you might want to consider.

1. Decide where your funds might be most helpfully placed, and over what time frame

It’s likely that you have a set amount you have decided to contribute towards your child or grandchild’s higher education.

So, one of the most crucial decisions to make before parting ways with this money is to choose where the funds are best placed.

Paying tuition fees upfront

You might have thought about paying some or all of your child’s tuition fees in order to prevent them from leaving university with a large amount of debt. As of the 2024/25 academic year, most English and Welsh universities charge £9,250 a year.

While this might sound like a great idea, remember that many students won’t finish paying off their student debt in their lifetime, so paying these fees upfront may not be the most cost-effective course of action.

Plan 5 students (those starting an undergraduate degree after August 2023) won’t need to start repaying their student loans until they earn £25,000 a year or more, and the debt is expunged after 40 years.

What’s more, the amount your child would repay each month after they begin earning enough is usually very small – as little as £8 a month – and will rise in line with their income. So, while the total amount of debt they hold is large, your child is unlikely to be overwhelmed by the financial burden of paying back tuition loans.

Helping with accommodation and living costs

Aside from tuition fees, accommodation is likely to be the most expensive aspect of a student’s life. MoneySuperMarket says that purpose-built student accommodation costs an average of £7,374 a year. Private rents average at £550 a month or £6,600 a year, Save the Student reports. These vary widely between locations, with London being the most expensive place to live and study.

In the 2024/25 financial year, the maximum maintenance loan most students can receive when studying outside of London is £10,227. This means that your child or grandchild may spend more than two-thirds of this money on accommodation. For London-based students, the maximum maintenance loan is £13,348, but Save the Student says these students spend around £900 a month (equal to approximately £10,800 a year) on rent.

So, it could be extremely helpful to offer your child some ongoing support with living costs while they’re at university. This could be by acting as a guarantor on any accommodation contracts they sign, providing financial help on a monthly basis, or providing a lump sum at the start of the year. Alternatively, you could supplement their budget for non-accommodation spending including food, activities, travel, and clothing.

2. Talk to a financial planner before you offer funds to a student

From a student’s perspective, your financial assistance will likely be gratefully received. But there is another point of view you might wish to consider first: how offering this money might affect your own future plans.

For example, if you gave £7,000 a year for accommodation costs and your child or grandchild is studying for three years, your contribution would be £21,000 – no small sum.

In order to pay for this expense, you might consider:

• Dipping into your pension pot if you are able to
• Liquidating a portion of your investment portfolio
• Using up your cash savings.

While there is no harm in wanting to help your child or grandchild through higher education, using up too much of your savings or investments could hurt your financial viability later in life. This may be especially true if you have set-in-stone goals, such as hoping to retire at a specific time.

That’s where working with a financial planner may come in handy. I can help you establish how much you can comfortably afford to pay towards your child’s higher education, looking at all the variables to ensure your financial plan is still on track to meet your goals.

I can also help you decide how best to contribute towards your child’s costs, including whether to provide a lump sum or ongoing payments, the implications of being a guarantor, and so much more.

Get in touch

If you want to support your child or grandchild at university but are unsure where to begin, or have any other questions about financial planning, get in touch.

Email me at a.douglass@grosvenorconsultancy.co.uk or call my office on 01793 766 123. Alternatively, call my mobile on 07525 177 046.

While I offer high standards of service and will work with you to ensure any plan is right for you, I’m also a busy mum, so work Mondays and Tuesdays only.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The post Helping your children with university costs? 2 important aspects to consider appeared first on Alice Douglass.

Sadly, difficult times like this can also present financial challenges – MoneyAge reports the death of a family’s primary earner could set them back £190,000 over 10 years.

Understandably, you may be worried about what might happen to your family’s finances should you pass away, but you could ease these anxieties by considering protection.

For instance, life insurance could provide a tax-free lump sum payment to your family if you pass away. This could give them financial security and help them cover costs like mortgage repayments, school fees, and tax bills – a hugely comforting thought.

Despite the reassurance life insurance could offer, Which? reports that less than half of people in their 40s have sufficient cover.

So, keep reading to discover three helpful ways life insurance could provide you and your family with peace of mind.

1. Statistics prove that claimants are very likely to receive a life insurance payout

One common misconception you may have heard from friends and family is that “insurers don’t pay out”. However, recent data shows that this simply isn’t true.

The Association of British Insurers (ABI) reports that 96.9% of life insurance claims were paid out in 2022. It’s reassuring to know that the vast majority of families receive the financial support they expect from their loved one’s life insurance policy.

So, it could pay to ignore the rumours and consider life insurance. With the right protection in place, you can sleep soundly knowing your family will almost certainly be financially protected should you pass away.

2. Life insurance placed in trust could help your loved ones pay an Inheritance Tax bill

With the Inheritance Tax (IHT) nil-rate band frozen at £325,000 and the residence nil-rate band fixed at £175,000, families are facing increasingly large IHT bills.

Indeed, MoneyWeek reports that the average IHT bill may have risen to a whopping £243,000 for the 2023/24 tax year.

Much of your wealth may be tied up in property or other non-liquid assets. This means that if you were to die, your family wouldn’t necessarily have the cash to foot a hefty IHT bill.

Sadly, if your loved ones find themselves in this situation, they may have to sell sentimental items or even your family home to raise the required funds – a potentially heartbreaking prospect.

Fortunately, with the proper foresight, you could protect your family from this kind of painful situation.

With life assurance that matches your expected IHT bill, your entire IHT liability could be covered by the payout. While life insurance normally covers you for a specific term, life assurance covers you until you pass away, shielding your family from IHT in the ideal scenario that you live a long and healthy life.

However, without proper planning, there is a potential pitfall here. Your life assurance payout might be considered part of your estate and be taxed at the 40% (2024/25) IHT rate. This might leave your family short of funds.

To avoid this, you could hold your life assurance policy in a trust. The subsequent payout should then fall outside of your estate for IHT purposes, or at least reduce the rate of IHT your family pays.

You can hold life assurance policies in both bare and discretionary trusts, but the tax treatment may vary significantly between the two. To ensure your family isn’t faced with an unexpected tax bill should you pass away, it could be a good idea to speak to a financial planner.

A financial planner can help you correctly set up your life assurance policy and a corresponding trust, giving you the peace of mind that you could pass on as much of your estate as possible to your loved ones.

3. Your family could continue to live as normal without additional financial stress

You probably have a long-term vision of how you’d like your family’s future to look. Your ideal lifestyle could include sending your children to a certain school or retiring early.

As a financial planner, my mission is to help you achieve these life goals. And with the right life insurance, you could realise these goals for your family, even in the tragic event that you’re no longer there to share it with them.

A life insurance payout could help your family cover costs like school fees and mortgage payments so they can live the life you’ve always envisioned for them.

Money from the life insurance payout could also be used to cover essential living costs like utility bills and transport while your family adjusts.

With this financial safety net in place, you can relax knowing your family will be provided for if you were to pass away.

Get in touch to learn more about protecting your wealth from unexpected events

If you’d like to know more about how life insurance could give you greater peace of mind, email me at a.douglass@grosvenorconsultancy.co.uk or call my office on 01793 766 123.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate tax planning.

Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

The post 3 helpful ways that life insurance could provide financial peace of mind to your family appeared first on Alice Douglass.

In previous generations, the role of a financial adviser was often to recommend certain products and investment solutions. Much of the time, the adviser was tied into these recommendations by a wider corporation.

And while some restricted advisers still operate this way, independent financial planning has taken a huge step away from this type of work. Now, many advisers in our profession are moving towards a more holistic, genuinely bespoke approach that looks at the big picture, not just one aspect of your finances.

There are many phrases used to describe modern independent financial planning, including “holistic financial planning” and “lifestyle planning”. Whichever way you put it, this type of advice can have huge benefits beyond the fiscal improvements you’d expect to see.

So, if you’re unsure of how independent lifestyle financial planning differs from old-fashioned advice, and would like to learn some of its advantages, keep reading to learn how it could benefit you.

Your goals are at the heart of the conversation

When you think about your money goals, it’s likely that the “why” behind the goal matters the most.

For instance, you might wish to:

• Set aside enough money for your children and grandchildren to live comfortably later in life
• Have enough wealth to fund a happy, healthy retirement
• Be able to pay for your own later-life care
• Tick exciting items off your bucket list.

When you meet with a financial planner for the first time, you might expect to be asked about your financial situation, and perhaps even to be lectured on everything you’re doing wrong.

It may surprise you to learn that an independent, lifestyle-focused financial planner will:

• Talk to you about your biggest goals
• Ask you about any long-term concerns
• Explore how your current financial situation could help achieve these goals and soothe your worries.

Of course, the role of a financial planner is to manage your money. But before we can do this effectively, we must first get to know you on a deeper level.

Our independent approach helps you through the ups and downs of life’s journey

Once a lifestyle financial planner knows your priorities and goals, we can then begin to look at how your money can take you where you want to go.

It can help to think of your money as a vehicle. You’re in the driver’s seat – you decide the destination, the route, the stops you take along the way, and who rides in the car with you – but without the vehicle, you won’t be able to reach your destination.

In this analogy, your financial planner is like a mechanic (and not the kind that rips you off). We’ll help you design the perfect vehicle for you and your family, using our expertise to ensure it runs efficiently over the years.

Sadly, the road may not always be smooth. You could hit a particularly nasty pothole, face storms causing poor visibility, or skid on the ice. But no matter what happens, your “mechanic” will be there with their toolkit to help fix up your vehicle and put you back on the road safely.

Of course, this is just an analogy. But without expert input, your “vehicle”, or your wealth, could become run down, overworked, or simply not be robust enough to take you through the journey of life.

Sadly, just like car mechanics, some financial advisers will try to shoehorn you into a one-size-fits-all solution without properly looking into your situation.

On the other hand, an independent financial planner will stick by you throughout your life. We have access to the whole of the market, meaning there is no need for us to recommend investment solutions, protection products, or any other financial decision unless it genuinely suits your needs.

The last few years have presented plenty of “bumps in the road”, and there have certainly been some financial storms for families up and down the UK. If your finances are feeling the burden of all these events, now could be the time to consult an expert who only has your best interests at heart.

Qualified, independent financial planning could offer the ultimate peace of mind

I’m an independent financial planner who believes that putting my clients’ goals first is the way to achieve the results they want.

My clients range from those in their peak career years to couples who have already been retired for decades, and everyone in between. Lifestyle financial planning is about tailoring bespoke solutions no matter the stage of life a person is in. It all fits around you.

Whether you’re someone who likes the sound of independent financial planning, or a professional with clients who could benefit from what I do, get in touch.

Email me on a.douglass@grosvenorconsultancy.co.uk or call my office on 01793 766 123.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The post What is “lifestyle financial planning” and how could it help you achieve your goals? appeared first on Alice Douglass.

These might include your:

• Private pension(s)
• State Pension 
• Investment portfolio
• Protection, like life insurance
• Estate planning, like your will or Lasting Power of Attorney (LPA).

Now that the new tax year has begun, this could be the perfect time to complete some important, but often forgotten, financial tasks. 

Here are just seven to get you started.

1. Review your will

Your will is one of the most crucial documents to your name. Designed to ensure the fair distribution of your estate after your death according to your personal wishes, it is imperative that your will is up to date.

If your circumstances have changed recently, such as getting divorced or welcoming a new child or grandchild, now is the time to revisit your will and make the appropriate changes. 

You may gain immense peace of mind knowing that if you were to pass away unexpectedly, your precise inheritance wishes are laid out clearly in writing.

2. Register a Lasting Power of Attorney

An LPA is a document that allows another person to make choices on your behalf in certain circumstances.

There are two types of LPA: financial, and health and wellbeing.

A health and wellbeing LPA allows you to name an “attorney”, such as a trusted friend or family member, who can make health decisions on your behalf if you lose mental capacity.

A financial LPA means that your nominated attorney can manage your money on your behalf, including withdrawing money from your bank accounts and buying or selling properties. This could be helpful if you: 

• Become unable to make your own decisions due to an illness or injury
• Decide to pass financial responsibility to a younger family member once you reach old age.

The most important thing to remember here is that if you lose mental capacity, it’s too late to register an LPA. So, registering your LPA as soon as possible may mean that you’re covered in case something goes wrong.

3. Request a pension statement from each provider

A personal pension pot(s), including any workplace pensions and self-invested personal pensions (SIPPs), are invested assets that often form a crucial part of a person’s retirement income.

While you may not need to know how your pensions are doing every single day of the year, it could be very helpful to request a pension statement from each provider at the start of the tax year and look at your pot’s performance. 

Reviewing your pension performance at the start of the tax year may: 

• Help you figure out if you’re on track to retire comfortably 
• Enable you to consolidate any small or underperforming funds if this move is right for your circumstances
• Increase your contributions where you can. 

Importantly, your pension Annual Allowance resets at the start of the tax year. This stands at £60,000 or your total earnings (2025/26 tax year), whichever is lower, for most earners. If you are a high earner, your Annual Allowance may be tapered down. 

By looking at your pension performance at the beginning of the tax year, you can make the most of your Annual Allowance by making contributions throughout the year, perhaps boosting your pension’s value as you head towards retirement.

4. Revisit your financial protection

When unexpected life events occur, it can be extremely disorienting. So, knowing that you have financial protection in place, like life insurance or critical illness cover, may offer you immense peace of mind.

As a result, it may help to conduct an annual review of your protection. You may need to change your address or the amount of cover you need if your circumstances have changed, for example.

Doing so could mean that if the unexpected happens, such as a cancer diagnosis or stroke, your family’s wealth may be protected, avoiding a costly depletion of your hard-earned funds over time.  

5. Check your State Pension eligibility online

The State Pension is likely to form the bedrock of your retirement income. 

The amount you receive depends on how many “qualifying years” are on your National Insurance (NI) record. A qualifying year means that you have paid enough in National Insurance contributions (NICs), or earned NI credits for that year through receiving benefits, for example.

As the tax year begins, checking your NI record and finding out how many qualifying years you have may be a constructive move. In doing so, you could:

• Pay voluntary NICs for missed years if you wish (usually, you can back-pay NICs for the previous six tax years)
• Prepare your retirement budget according to the amount of State Pension you’re set to receive.

This move is especially crucial if you are set to reach State Pension Age in the next 10 years or so – it means that you have plenty of time to maximise your State Pension eligibility where possible.

6. Plan your ISA contributions for the year

An Individual Savings Account (ISA) is a tax-efficient account that allows you to grow your wealth without interest or investment returns being eligible for Capital Gains Tax (CGT) or Income Tax. 

Much like your tax allowances, the overall ISA contribution limit of £20,000 (2025/26 with varying limits depending on the type of ISA you have) resets on 6 April. When a new tax year begins, it may help to take a look at your ISAs and plan how much you’d like to contribute in the coming 12 months. 

It may sound obvious, but if you contribute as much as you can into your Stocks and Shares ISA at the very beginning of the tax year, your returns over the long term could increase as a result. Putting the maximum amount in when the new tax year begins means your money has more time to grow tax-efficiently.

Or, you could opt to pay into your ISA on a monthly basis – either way, knowing how much you’d like to allocate for this purpose may be a constructive way to start the new financial year.

7. Contact your financial planner for a review

Your financial planner’s role is to manage the big picture aspects of your finances, while you get on with the important business of day-to-day life. 

So, if you are feeling proactive about covering the above tasks, but are apprehensive about keeping track of your overall financial plan in this year and beyond, contacting your financial planner may be a natural next step. 

A full review of your finances with a professional by your side may help you maintain peace of mind while pursuing the life goals that are important to you. 

Email me at a.douglass@grosvenorconsultancy.co.uk or call my office on 01793 766 123. 

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning or, will writing, or Lasting Powers of Attorney.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The post 7 “big picture” financial tasks to complete at the beginning of the tax year appeared first on Alice Douglass.

1. Increase your pension contributions

A survey of 2,000 UK adults found that 20% said they had either cut, or thought about cutting, their workplace pension contributions in the cost of living crisis.

A “small dip” in your pension payments may not sound like much, but according to the report from PensionsAge, these cuts could lead to a significant shortfall in your pension pot when you retire.

The research used the example of a person earning £27,756 – the average UK salary – contributing their minimum auto-enrolment amount, which is £143.44 a month. If this individual halted their contributions for three years at age 30, this could reduce the value of their pension pot by more than £21,000 by the time they retire.

If you earn significantly more than the example given, stopping or reducing your pension contributions could have even more of an impact on your retirement fund.

Fortunately, the opposite is also true: increasing your pension payments could be a great way to boost your retirement fund. Upping your contributions and paying one-off amounts into your pension, such as a work bonus, may help to bolster your existing retirement savings.

Not only will this money help to increase the value of your pension, but your contributions are also likely to receive government tax relief. As such, this move could be beneficial on multiple levels.

2. Ensure your wealth is protected from the unexpected

Nobody likes to dwell on the unthinkable, but if your family is affected by a death or serious illness , having an appropriate package of protection in place could make an enormous difference.

Cover options like life insurance, critical illness cover, and income protection insurance, while different from one another, are all designed to help shield your wealth from the impact of a life-changing event. Payouts from any of these types of protection could help your family to:

• Continue their standard of living even in unexpected situations, such as your death or illness
• Keep paying important bills like your mortgage and essential household expenditure
• Pay for important one-off costs, such as a funeral, without worry
• Put money away for later in life.

Sadly, many people do not put protection in place because they believe providers won’t pay out. Yet according to the latest data from the Association of British Insurers (ABI), in 2022, the following percentage of claims were paid out to families:

• 96.9% of life insurance claims
• 91.6% of critical illness cover claims
• 84.4% of income protection insurance claims
• 97.5% of all protection claims.

With these statistics in mind, it may be worth taking the time to review your existing protection and update it according to your current circumstances. This way, you and your family can start 2024 with the knowledge that your wealth is protected to the best of your ability.

3. Talk to an experienced financial planner

Financial planning is more than just a numbers game – in actual fact, a financial planner’s main role is to help you put your life goals into action. 

Think of yourself as a driver behind the wheel; your money is the vehicle, and your financial planner provides the map that guides you towards your destination. The road has been bumpy for many people in the last four years, so having an experienced guide in the passenger seat could make a huge difference to your journey.

Consulting a financial planner could help you to:

• Prepare you for any increase in your tax burden 
• Review your retirement plans and ensure your pensions are on track to support you sufficiently later in life
• Put plans in place for exciting bucket list opportunities in the year ahead
• Offer funds to the next generation for important milestones like a wedding or their first home
• Continue building your investment portfolio
• Gain the ultimate peace of mind that your finances are in safe hands.

If you wish to take action on your finances this year, working with a professional could give you the confidence and motivation to achieve what you desire.

To learn more, email me at a.douglass@grosvenorconsultancy.co.uk or call my office on 01793 766 123. 

While I offer high standards of service and will work with you to ensure any plan is right for you, I’m also a busy mum, so work Mondays and Tuesdays only.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits. 

Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

The post 3 simple actions that could help you reach your financial goals appeared first on Alice Douglass.

Think back to your childhood and there will be traditions and memories that stay with you even today. And it’s often the simple, low-cost, or even cost-free activities that you remember the most. 

Now, it’s your turn to do the same and create some simple but meaningful traditions that your children will cherish forever. Who knows, they may even pass them down to the next generation and become part of your family’s heritage. 

If you need a helping hand and some ideas to keep the little ones busy during December, read on to discover five cost-effective ways to get ahead for the festive season with your children. 

1. Make your own wreath at home

Wreath-making has had quite the resurgence in recent years, with workshops cropping up all over the place. However, the good news is that you don’t actually have to leave the comfort of your home to create your own wreath.

Gather around your dining table with natural elements like pine branches, holly, and colourful ornaments, and enjoy a family crafting session. Wreath-making is a hands-on lesson in patience, creativity, and teamwork. 

If you don’t consider yourself to be the next Martha Stewart or Sara Davies, you can always make life easier for yourself by buying a kit from your local craft shop, florist, or online. 

2. Craft your own tree decorations

Add a homemade touch to your tree by crafting your own festive tree decorations with the children. 

This is a chance for them to express themselves while making special ornaments that hold sentimental value. You can dig them out year after year to decorate your tree and be reminded of the happy memories you made while creating them.

Keep things simple by making your baubles out of paper or recycled cardboard. Alternatively, if you’ve got a crafting hand, you could teach your child new skills by sewing fabric decorations, or show older children how to knit some unique festive characters. 

3. Write a letter to Father Christmas

The timeless childhood tradition of writing a letter to Santa has been around since the late 1800s, and to this day, it is still a heartwarming activity among children. 

Writing a letter sparks their imagination and evokes a sense of excitement as they pour out their heartfelt wishes for Christmas and celebrate their good deeds of the year. 

Why not spruce up their letter by adding sweet photos or including a gift request for someone else who has done something positive this year? This personal touch magnifies the spirit of giving, making the tradition more meaningful.

4. Create a Christmas box to donate to charity

Amid the celebrations, it’s helpful to remind children about the importance of giving to those less fortunate. By involving little ones in charitable activities, we teach them the significance of spreading joy and making a positive impact on the lives of those who may not share the same excitement for Christmas. 

Sit down with your child and decide what you are going to put in the box before taking a trip to pick up the necessities. When you get home, you can wrap up the presents together and chat about how excited the recipient will be to receive the box. 

5. Wrapping presents as a family

For many, wrapping presents is one of the most dreaded tasks of the holiday season – but it is possible to turn it into a wholesome family experience.

You’ll just need to find time to gather around the table with colourful paper, ribbons, gift tags, and an array of embellishments. Then, put a Christmas film on in the background or play your family’s favourite festive album to help everyone get into the spirit! 

This is about more than wrapping presents; it’s an opportunity to come together for an afternoon and share your wrapping hints and tips, laugh about stories of Christmases past, and give your child a sense of responsibility too.

Wishing you a very merry Christmas and a happy new year

I’d like to wish you all a safe and happy Christmas, along with a joyous new year. 

See you next year!

The post 5 cost-effective ways to prepare for the Christmas season with your children appeared first on Alice Douglass.

What’s more, as the cost of living crisis has made times tight for a number of UK families, worries over financial losses have become even more prevalent. 

According to the Mental Health Foundation, the cost of living crisis has contributed to 30% of adults having “poorer quality sleep”, and 23% are even meeting with friends less often to help cut costs. 

With this in mind, you may be preoccupied with “timing the market” in order to feel certain that the investments you make will return impressive profits.

Yet the truth is, there’s no such thing as the “perfect” time to invest. And, perhaps even more surprisingly, history tells us that staying put through market fluctuations can help you meet your targets over the long term.

Keep reading to find out two surprising reasons why doing nothing at all could actually be a more successful strategy for investors, even in volatile times.

1. Selling your investments during times of unrest can lead to significant losses

One essential way that sitting back and doing nothing can benefit your investments is that this approach can help avoid panic-selling.

Sadly, panic-selling is a common investment mistake that can result in significant losses. It describes becoming worried about the value of a holding when it decreases and deciding to cash in before its value dips any further.

Although tempting, panic-selling obliterates your chances of regaining what you invested in that particular asset. This is called “crystallising your loss”, and can cause you to make the temporary dip in your holding’s value permanent.

Ultimately, sometimes inaction is preferable to action. 

It’s understandable that you may not wish to witness your investments lose value before your eyes, but history tells us that markets typically recover after short-term dips. 

In fact, the stock market’s best-performing days have often happened just after, or during, significant downswings. 

As CNBC reports, the US stock market’s highest-returning day between 2002 and 2022 was 13 October 2008 – right in the middle of the worldwide financial crisis. On this day, markets returned 11.6%.

In a similar vein, the report also states that the third best day for the US stock market within that time frame was 24 March 2020. On this day, markets gained 9.4%, despite experiencing an overall decline due to panic surrounding COVID-19.

Sadly, not everybody held out for markets to improve during the turmoil of March 2020. According to Magnify Money, 42% of investors sold stock at the very beginning of the pandemic when markets became volatile. By September of the same year, 88% said they regretted the decision.

As such, even when the world seems to be turning itself upside down, your long-term goals are what matter most. If you’re tempted to panic-sell, remember that markets typically bounce back after periods of unrest.

2. Holding investments for longer has historically improved the chance of positive returns

Constantly chopping and changing your investment portfolio may not be conducive to favourable performance. Alternatively, holding onto your investments and building up a diverse portfolio over time could help you see more consistent returns.

In fact, a study by Nutmeg, spanning the time period between January 1971 and July 2022, shows the clear financial advantage investors would have seen if they held their investments for longer.

The below graph shows how the chance of positive returns increased in correlation with the length of time over which an investment was held.

The study revealed that: 

• If you invested your money on any random day within the given time frame and held it for 24 hours, your chances of positive gains would be 52.4% – around the same odds as a coin toss.
• Furthermore, if you held this same investment for a whole quarter, your chance of positive returns would rise to 65.6%. 
• Keep the investment for a year, and your chance of seeing profits reached 70%.
• Finally, holding onto the asset for 10 years would push the chance of returns up to 94.2%.

Of course, no matter the time frame over which they are held, it is essential to remember that the value of your investments can fall as well as rise. Past performance is not a reliable indicator of future performance. 

Nevertheless, these historical examples clearly show how advantageous it could be to keep hold of your investments.

Rather than micro-managing your portfolio and causing yourself more stress, sitting back and leaving your existing holdings alone could actually make you a more successful investor.

Looking to expand your investment portfolio? Discuss your ideas with a financial planner

Whether you’re a first-time investor or you’re well-versed in the ups and downs of the stock market, creating an investment plan with a financial planner can help put your life goals into action.

I can listen to any worries you may have about market volatility, and provide expert advice on creating a diverse portfolio of assets over a time frame that suits you.

To learn more, email me at a.douglass@grosvenorconsultancy.co.uk or call my office on 01793 766 123. Alternatively, call my mobile on 07525 177 046. 

While I offer high standards of service and will work with you to ensure any plan is right for you, I’m also a busy mum, so work Mondays and Tuesdays only.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The post 2 surprising reasons why doing nothing could make you a more successful investor appeared first on Alice Douglass.

Of course, I can help you with your financial targets, including assisting in building a diverse investment portfolio, creating a bespoke retirement plan, and setting the next generation up for financial independence. 

Yet often there is one aspect of what I provide that is almost entirely overlooked: the human side of financial planning. Indeed, this factor can provide immense, tangible benefits that go alongside the financial value advice often brings – yet many do not make the most of it.

You might be wondering: “How can the ‘human’ side to financial planning be just as valuable as the wealth benefits?”

Read on to find out how to reap a different kind of value from the financial planning process.

Financial stress is increasing during the cost of living crisis – and you may need additional support as a result

Since the Covid pandemic began, there have been many stress factors affecting all our lives – and a number of these have been financial.

Alongside the financial stressors of the pandemic itself, the cost of living crisis followed shortly afterwards, seeing inflation rise to 10.1% as of March 2023, the Office for National Statistics (ONS) reports. What’s more, the Bank of England (BoE) increased the base rate 11 times between December 2021 and March 2023, bringing it to 4.25%. 

These factors, among many others, have increased national financial stress levels, researcher Champion Health reveals. Up to 24 million adults do not feel confident managing their money, and financial pressure is the top cause of stress outside of work for more than one-third of people, the study suggests.

So, if you have always felt capable of handling your wealth but feel out of your depth in recent months and years, you are not alone. 

Down-to-earth financial planning can help improve your emotional wellbeing as well as your wealth circumstances

It is undeniable that our emotions and finances are intertwined. From stress-spending to lying awake at night worrying what might happen to your family if you were no longer around, financial stress is often provoked by deeper life concerns.

Of course, booking a review of your wealth circumstances with a financial planner can help ensure you have your ducks in a row, especially in a time of rising costs. 

But perhaps equally importantly, speaking with someone who can listen to your worries could be immensely relieving if you are harbouring intense financial stress. 

Beyond creating a plan to help you become financially prosperous, I can also act as a confidant. As a busy working mum myself, I can understand where you are coming from, and help guide you through a financial plan that doesn’t just add value, but lowers your stress levels too.

I will:

• Meet you where you are – I adopt a judgement-free approach to all client relationships
• Hear your biggest concerns about the future, and how these connect with your wealth overall
• Offer an empathetic view paired with a strategic approach that can help empower you to make confident financial choices
• Put in the effort to sustain a long-term relationship with you, prioritising your financial and emotional wellbeing throughout the advice journey.

After all, there’s no price tag on your peace of mind – so making the most of the stress-busting aspects of financial advice could prove invaluable now and in the future.

A long-term relationship with a financial planner can help you weather life’s toughest storms

One of the most exciting and challenging parts of life is that you never know what will happen next. 

From joyous occasions like births, marriages, and promotions, to sad circumstances like deaths and illnesses, life throws things our way whether we are prepared or not.

Whatever is going on for you right now, and whatever age you are, forging a long-term relationship with a financial planner can help you through all the seasons of your life to come. 

For instance, you could be on the cusp of retirement, already in a solid financial position as you give up work and head into this much-anticipated stage in your life. By forming and nurturing a relationship with a financial planner now, you can make the most of the opportunities that lie before you and look ahead towards the long-term prosperity of your family.

On the other hand, if you are finding life difficult due to financial stress, illness, injury, grief, or separation, having a partnership with an experienced financial planner means you don’t have to bear the weight of these experiences alone.

Of course, the numbers attached to your financial plan are vital – but beyond these tangible factors lie a plethora of holistic benefits to financial advice. 

Get in touch

For a chat about anything discussed in this article, or for a review of your circumstances, email me at a.douglass@grosvenorconsultancy.co.uk or call my office on 01793 766 123. Alternatively, call my mobile on 07525 177 046. 

While I offer high standards of service and will work with you to ensure any plan is right for you, I’m also a busy mum, so work Mondays and Tuesdays only.

Please note:

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The post The most underrated benefit of financial planning, and how to take advantage of it appeared first on Alice Douglass.

1. Form a habit

According to research, it takes an average of 66 days to form a habit, which means the best resolution you could make might be to stick with your new commitment. Typically, starting small is a good way to create a positive habit, as you’ll probably find it easier during the early stages.

For example, if you want to start saving, start by putting a smaller amount aside as you’re more likely to stick with it. This then increases the chances of you fulfilling your pledge and saving larger amounts later on.

2. Use a budget

Using a budget is an excellent habit to get into. Budgeting allows you to understand how much money is coming into your accounts and how much is leaving them. 

This ensures that you can meet your financial commitments without having to rely on credit cards or loans to bail yourself out when you accidentally overspend and can’t meet your overheads.

3. Organise your paperwork

Being organised is an excellent financial habit. If you currently have piles of paperwork, organising them and filing them away so that you know where they are when you need them is an important new year resolution.

This doesn’t mean keeping all of your paperwork in the same place though; for security reasons, it might be better not to. Shred any discarded paperwork and dispose of it securely.

You may want to consider asking your pension provider or bank whether you can go paperless, or scan any documents to create a digital version. These could then be kept securely on your computer.

Once you have organised your paperwork, maintain the habit of keeping on top of it.

4. Pay down debt

Another good habit to consider is paying down as much of your debt every month as you can. This could save you thousands of pounds in interest and help improve your credit rating.

If you can clear credit cards at the end of every month, you will typically not pay any interest at all.

5. Create an emergency fund

Regularly contributing towards a “rainy day” fund is good financial practice. The Covid pandemic and recent economic events demonstrate that life doesn’t always go to plan, which is why it’s important to have enough money to stay financially afloat when things go awry.

It’s usually best to have between 3 to 6 months’ worth of expenditure in an easily accessible account, although this depends on your circumstances. The money can then be used to deal with the unexpected without relying on expensive credit cards or loans.

6. Check your pension regularly

Checking your pension on a regular basis provides a better idea of how it’s performing and whether it will provide the lifestyle you want when you retire. A financial planner can explain whether your retirement fund is living up to expectations and provide options if it’s not.

Furthermore, a planner can help you maximise the tax relief pensions provide, which means that every £100 you contribute only costs you £80 if you’re a basic-rate taxpayer. If you’re a higher-rate taxpayer it costs just £60, and an additional-rate taxpayer may only pay £55.

As you can see, maximising tax efficiency could help you increase the value of your pension pot in a relatively short period of time.

7. Pay yourself first

Instead of seeing how much surplus cash you have at the end of the month, and transferring that into your savings, investments, or pension, pay yourself first. Set up a payment that comes out of your account on payday, and then manage your monthly expenditure based on what is left.

This will help ensure that your financial future lives up to expectations.

8. Adopt the “30-days rule”

If you enjoy shopping but suffer from buyer’s remorse later, you may want to consider the 30-day rule.

When you see something you would like, instead of buying it straight away, commit to buying it in 30 days if you still want it. During the period, consider carefully why you want it, and if at the end of the period you still do, go ahead. 

9. Consider investing your money

Historically, investing money has tended to expose it to greater growth potential than placing it in cash savings. Research by Schroders showed that between the start of 1952 and the end of May 2022, UK equities returned 11.7% a year on average while cash averaged 6% a year. 

While you can invest a lump sum, you may also want to consider making regular contributions to investments. That said, investing should not be entered into lightly, and please remember that past performance is no guarantee of future performance.

10. Work with a financial planner

The best way to get your finances in shape is to work with a trusted financial planner. They can help you define your goals and create a wealth strategy that will help you achieve them.

Get in touch

If you would like to discuss these and other ways you could get more from your money in 2023, please email me at a.douglass@grosvenorconsultancy.co.uk or telephone 01793 766 123. Alternatively, call my mobile on 07525 177 046, I’ll be happy to help. 

Please note that while I offer high standards of service and ensure that any solution I recommend is right for you, I’m also a busy mum, so work Mondays and Tuesdays only.

Please note

This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The post 10 simple and effective financial resolutions appeared first on Alice Douglass.

If your child will be going to university this year or is planning to further their education in the future, you undoubtedly feel proud. However, you may also worry about what it means for your child financially.

As a parent, it is important to understand what expenses students face, how they will repay student loans in the future, and how you could offer support. This could put your mind at ease and mean you could take steps that will allow your child to focus on their studies.

In this guide, read more about:

• The cost of going to university, including tuition fees and living costs
• How student loans work
• How students can fund postgraduate education
• What to consider if you want to make your child’s education part of your financial plan
• And more…

Download your copy of “The parents’ guide to paying for university and student loans” to learn more.

If you’d like to talk about how you can make education part of your financial plan and support your child while they study, please contact us.

The post The parents’ guide to paying for university and student loans appeared first on Alice Douglass.