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Plan your way to financial success in 2010
1/5/2010
Alok looks back at 2009 and offers advice on how to find financial success in 2010.
There’s no doubt that 2009 was a year of financial doom and gloom and many people in the UK will have been glad to say goodbye to it this week. However, 2010 is already showing positive signs of recovery, so now is the perfect time to make sure your financial plans are up to date.
We saw a sad start to 2009 with the news of Woolworths going into administration, followed closely by stores such as Zavvi, Adams and Whittards. The sight of closed branches across the UK was a very visible reminder of the victims of the recession, with thousands of people losing their jobs. Then in March, the FTSE 100 index plunged below 3500, reaching a 6-year low and causing a great deal of worry for banks and businesses throughout the UK. However, the index now stands at around 5300, which is a much more positive figure for going forward into 2010.
Throughout 2009, many people were afraid to make any financial decisions, preferring to keep a tight hold on their money during the recession. However, sitting back and doing nothing rather than making a constructive financial plan is counter-productive. Now that there are encouraging signs of restored confidence in the market, there’s no need to be overly cautious or bury your head in the sand.
The emerging markets such as the BRIC economies (Brazil, Russia, India and China) have experienced considerable financial success and growth during the past year. Some of these collective funds have grown by more than 50%. For those who rejected the pessimistic outlook for 2009 and were brave enough to invest, their risks have been rewarded with excellent returns. However, don’t forget that an investment can go up as well as down, so if you are serious in considering an investment opportunity in 2010, speak to an Independent Financial Adviser about building your investment portfolio to suit your risk appetite and financial circumstances.
Looking back at 2009, we saw a gradual increase in house prices for the last 7 consecutive months, leading to increased optimism in the property market. The government’s car scrappage scheme, which has now been extended, has been very successful, saving consumers a great deal of money and providing cleaner, greener cars.
Most recently, retailers enjoyed high levels of Christmas sales at the end of 2009, restoring some buoyancy and hope to the high street after a difficult year.
With these positive signs, now is the perfect opportunity to look at 2010 as a fresh start. Wipe your slate clean and start your financial plan now for the New Year. If you are worried about any debts hanging over you from the expense of Christmas, seek expert advice as soon as possible.
Similarly, if you have concerns about your income reducing and tax rates going up, please make an appointment with Independent Financial Adviser who will guide you forward on your financial journey in 2010.
It is a certainty in this world that you and your family will either live too long, die too soon or become sick or disabled, so make sure you’re prepared for the future. Just as you would visit a dentist for a check up, you should see an Independent Financial Adviser every 6 months or so, even if you’d just like an informal chat and a brief review of your financial plan. There is no need to neglect your financial health.
For further information on how Alok can help you with your personal or business planning needs, contact Dhanda Financial, 52 Dean Street, Newcastle upon Tyne, NE1 1PG, telephone 0191 255 8960, or email alok@dhandafinancial.com
