Stoke-on-Trent independent financial adviser, Becky Hammonds of Willow Financial Solutions, looks at what you can do to protect your finances in 2023:
UK inflation has eased a tiny amount to 10.7% but there’s no end to the cost of living crisis and according to the Joseph Rowntree anti-poverty charity, 7.2m households are going without the basics and 4.7m are now behind on bills.
So what can you do to protect your finances in the year ahead?
If you can afford to, save more and set financial goals for the year ahead to create a buffer in case times get harder still. According to Hargreaves Lansdown, 36% of people make financial resolutions each year, from saving more to cutting back on spending.
So, what can you do to save more and spend less?
Check you have the best possible savings rate and if you have investments, speak to your adviser to ensure that your product is appropriate for your needs.
The same is true for your pension. If you need to access any of your retirement savings, again your financial adviser will be best placed to advise you of the implications of drawing down any funds.
Make sure you have the correct protection in place – life cover, income protection are all important vehicles to protect you from any disruption to your income going forward.
Investing to beat a recession
Around a quarter of investors (23 percent) are keeping their portfolios exactly the same, according to stockbroker Interactive Investor.
However, 13 percent are increasing their exposure to stocks and 10 percent are looking for more defensive investments. These actions depend on each individual’s attitude to risk which your adviser will go through with you.
Around 7 percent of cautious investors are putting more money into safe cash accounts which are benefitting from increases in saving rates.
Investments and pensions are a complex area and an independent financial adviser is ideally placed to provide information and advice on the best route to take.
For more information contact Becky Hammonds on 07969 269677 or email becky@willowfs.co.uk visit: www.willowfs.co.uk
