2020 was a tough year for everyone, and I’d like to start by thanking everyone for their patience and understanding in what has been an uncertain, and highly stressful, year.

A lot of my time last year was spent on re-assurance.

Understandably, my clients have had concerns about their financial affairs, and how the pandemic will affect their financial planning moving forwards.

One of the biggest reassurances is that markets and investments have started the slow road to recovery already and, although we are not out of the woods yet, we expect them to continue to recover in time.

Last year has brought a new reliance on technology, too, with most of us having more video calls than face-to-face meetings!

Nothing can really compare to an old-fashioned face-to-face meeting over a coffee with a client, but using My Advice Portal to have client meetings online has been great. Moving forwards, it will give us the opportunity to be more sensitive to the way you would like to connect in the future and offer the ability to fit virtual meetings around your busy schedules to enhance the service you are already receiving.

That’s last year, but what about 2021?

Though we all hope things will slowly bounce back to normal with the emergence of vaccines, we can still expect uncertainty to linger into 2021.

However, this just means we can plan ahead more effectively!

What will 2021 hold?

Increased review meetings

It’s something I’ve emphasised a lot last year, and 2021 will be no different – your financial future is dependent on good, solid planning!

Having regular review meetings not only offers you peace of mind, it also affords you greater adaptability throughout uncertainty.

If you are uncertain of your financial future, or have questions about your financial plan, please don’t hesitate to contact me – I’d be happy to help!

Market changes

A new President of the United States, Covid-19 and Brexit are key concerns hanging over markets (though, the recent news of vaccinations has actually seen a surge in markets).

We’ve been no strangers to short-term market volatility in 2020, and the best piece of advice is to not put too much faith in conjecture!

The financial planning I have put in place for clients is not short term and ensures that we take account of bumps in the road. Although the current uncertainty is uncomfortable, it is short term and shouldn’t affect your plans in the longer term. Be patient, keep persevering and try not to make short term decisions on long term plans. 

This is why increased review meetings and emphasising solid financial planning is so important, as it will take some time to see the effects of these events play out.

Tax changes

Government borrowing has soared to £214bn year to date due to the measures put in place to reduce the impact that the coronavirus has on our economy. There will inevitably be tax changes that will be put in place to claw this back.

An example of this are potential changes to Capital Gains Tax (CGT), which has gained a lot of news coverage recently. In particular, the prospect of bringing CGT in line with Income Tax, which would significantly increase the amount you would pay on the disposal of a gain.

However, the changes won’t affect the majority of taxpayers, and there are other tax wrappers that can be taken advantage of in order to shelter assets – it is important, now more than ever, that you use the tax allowances available to you and speaking to your financial adviser is the best course of action for this. 

The changes aren’t yet official, so ensuring that you are continuing to receive support for your financial planning means any changes can be appropriately planned for!

And finally…

Overall, let’s hope for a much safer and happier year in 2021. 

I’d be happy to help anyone looking for financial advice as we move in this new year.

Kindest regards,

David.

Sovereign Wealth Limited is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority).

The value of an investment with St. James’s Place may fall as well as rise. You may get back less than you invested. 

Taxation rules can change at any time and are dependent on individual circumstances.