Category Archives: Investment Advice

Time, not timing, is important

This time last year, investment analysts were predicting a positive, albeit modest growth in the global stock market for 2021.

Looking back now we can see that most experts were too conservative in their assessments. The Global Stock Market finished off the year 32% up on the previous year. 

There are a number of factors that led to that investment growth, not least the rise in energy stocks, a low interest rate environment as well as the continuing boom in technology related companies.

For our pension and long term savings clients who have their investments in well diversified funds, you have benefited from being invested in the great companies of the world.

The outlook for 2022 is for growth to continue but at a slower pace than what we have become used to.

Rising inflation has already meant that the great companies of the world have had to adjust their spending and all the signs are pointing toward the start of rising interest rates in the US. This will affect the ability for those companies to borrow and/or service their existing debt.

So while the market is expected to cool that doesn’t mean growth stops.

As investors with money in Pension funds or long term savings, the number 1 rule when markets are turbulent is to remain focused on your original objective and stick to the plan.

The following video is a great illustration of how to avoid falling into the emotional investment trap.

As always, if you have questions about your investments, savings or retirement planning, seek qualified impartial advice from a trusted adviser. You can contact us here for an initial chat.




Money On Deposit? Make It Work For You Now!

Do you have money on deposit? Are you just leaving it there? Have you considered starting a regular savings plan or putting a lump sum you have accumulated in an investment? If not, then you really need to understand why now is such a great time to start saving and making your money work for you.

Don’t get me wrong, everyone should have some money on deposit (ideally 3 months net salary). Deposit accounts are accessible and won’t decrease in value (in the short term!).

Current Dilemma

The problem is that for almost 12 years deposit rates have been in free fall. This means banks, building societies and credit unions cannot give you a real return on your savings.

In addition to this, Central Banks (who control monetary policy) need to keep interest rates as low as possible for at least another 5 years. This is to help keep the cost of borrowing low so that businesses and households can function and grow.


So the only solution to growing your savings is to invest.

I’m not suggesting people start emptying their deposit accounts and start trading stocks and shares every morning (this is not Paddy Power stuff!!).

An investment should be spread into a range of diverse assets (i.e. stocks, bonds, commodities and property) and the proportion in each asset class should be determined by what level of risk you are comfortable with and how long you would like to invest for.

There are a wide variety of very attractive regular savings plans and investment bond options available. The fund or funds you invest in is very specific to your needs and objectives so it is important you meet with a qualified advisor who will help you establish the best fit for you.

So, what kind of returns should you expect?

Historically those investors that have had more of their fund invested in equities (i.e. global stocks and shares) have performed the best.

But even the more conservative savers have outperformed deposit rates by taking on a cautious level of risk.

Performance table

The key to this is to choose a fund that you are comfortable investing in. And one which is designed to help you reach your financial goals.

Next steps

The next step to take is to talk to a financial adviser – you can contact us here at Coleman Financial Planning.

After you complete a short investment questionnaire we will help you decide what your saving/investment goal is, how much money you can put away and for how long.

Most importantly we will outline the product options and choices that are best placed to deliver on your goals.