What next for your finances after the General Election?
As we all know, the recent General Election turned up a very different result to that which was expected when the election was first called. The question it was supposed to resolve, about the ability of the current Conservative government and its leader to push through legislation, is still open. But while the headlines focus on what this means for Brexit, this is not the only area of impact. The personal finances of doctors in Bristol are also directly affected by this turn of events.
This month’s update brings you the news you might not have seen: the effect of the General Election on doctors’ personal finances.
It is normal for stocks and shares to fluctuate based on political events at home and abroad. Political uncertainty makes investors nervous, which leads to more volatility as investors buy and sell based on sentiment and speculation.
The key for doctors’ peace of mind is to be exposed to only as much market risk as you are comfortable with and that suits your investment goals, including the length of time you plan to stay invested and the level of returns you are looking for.
Diversification is also crucial so your money is spread across different types of asset and geographical exposure. This vastly reduces the likelihood of all your holdings being affected in the same way by political and economic circumstances.
If you are worrying about your portfolio due to the political and market conditions, it is probably time for an investment review.
2. Finance legislation delayed
When the election was announced, several measures announced in March’s Budget were put on hold. These include rules limiting how much you can contribute each year to pensions in certain circumstances and changing how, and how often, you have to fill in a tax return. The intention was probably to pick these back up after the General Election, but now the Conservatives have lost their majority and will find it harder to get these changes through it’s unclear whether they are back on the table or not.
As the situation remains unchanged for now, and in any case relatively few doctors would be affected by these changes, we think it’s more useful for doctors to keep an eye on the bigger picture.
3. The bigger picture
While the political picture may be uncertain, doctors probably still have an idea what they want for their future, be that retirement plans, a property purchase, or something else. Your plans are unlikely to be on hold just because legislation is.
Personal financial planning can help you focus on your main goals rather than the noise of the news. As financial advisers we take legislation into account but from your perspective the main focus is finding suitable solutions to meet your personal financial needs.
So, we posed the question of ‘what next’ for your finances. In answer, if your plans are unclear or you are concerned about markets we suggest your next step should be to arrange a financial review. Richard Higgs CFP FPFS, Chartered Financial Planner, can be contacted on 0117 966 5699 or email firstname.lastname@example.org.
This update does not constitute personal financial advice. All investments can go down as well as up in value and you may not get back the full amount invested.