Client trends January 2021:
Proactiveness rules as we turn to a much-altered future

Having extra time for reflection is one of the few silver linings to these strange times, and it is certainly being turned to good account among our users. They are seeking to reduce financial stress and increase the weapons in their wealth defence arsenal as a new year gets under way.

All change for the new year

A festive period without the usual festivities clearly gave people a much-needed chance to ponder their wealth management provision, with fees, performance and service standards all being put under the microscope even more than they had been in the months before.

Although few would have thought so back in the dark days of March, 2020 actually turned out to be a good one for investors and so those who don’t feel they got all the upside from surging equity markets have been understandably irked

Although few would have thought so back in the dark days of March, 2020 actually turned out to be a good one for investors and so those who don’t feel they got all the upside from surging equity markets have been understandably irked, particularly when fees have edged towards being on the high side. Questions about service standards have cropped up in our conversations with users noticeably more as well recently, with concerns tending to centre on the level of individual attention clients have been receiving. Our search tool has helped to put lots of proactive reviews in motion, which is great to see.

Reducing financial stress is a top resolution

Another thing it’s been great to hear is that our users are really focusing on reducing their money worries in 2021, and in fact often putting it at the very top of their resolutions list. Alarmingly, almost half of Britonsi say they are stressed out by their finances today – a situation which can surely only worsen where people don’t get help to deal with the uncertain economic environment and sweeping tax changes that now seem inevitable.

Getting expert help not only makes for a far more pleasant life, but also a healthier one, and that is naturally of huge importance currently

From what we’re hearing, the stress-busting value of having a guide through the maze has never been more apparent and we’re delighted this message is getting through to newcomers to wealth management. Getting expert help not only makes for a far more pleasant life, but also a healthier one, and that is naturally of huge importance currently.

Light bulb

Top Tip

We can attest that many people used the holidays to get to grips with neglected life admin, wealth management issues being top of the list. But you don’t need dedicate days or even hours to finding the right adviser to address your particular concerns. We can generate a shortlist of best-matched wealth managers in a matter of minutes and arrange convenient, no-obligation discussions with as many as interest you. Join our thousands of happy users and make 2021 the year you gain real control!

Lee Goggin - Co-Founder

Lee Goggin

Co-Founder

Burgeoning interest in joining the Bitcoin bandwagon

No reader of the money pages could have missed the stellar run that Bitcoin and other cryptocurrencies have had (recent wobbles notwithstanding), leading even the most conservative investors to ponder if they too should join the bandwagon. As well as blistering returns, advocates are pushing the narrative that these are an inflationary hedge very hard.

Allocating an unwisely large proportion of your wealth to any alternative asset, let alone one with so many risks attached, could potentially be disastrous

The investment story is certainly attractive. However, as we recently explored and continue to emphasise to our users, it is vital to understand both sides of the coin when it comes to crypto. Allocating an unwisely large proportion of your wealth to any alternative asset, let alone one with so many risks attached, could potentially be disastrous. That said, institutions – including those on our panel – are increasingly confident of cryptocurrencies’ potential, and are able to offer both advice on and access to this exciting corner of the investment universe.

IHT concerns fuelling interest in charitable gifts

It’s been lovely to have charitable bequests coming up more and more in our conversations with users. Although wealthy individuals certainly pursue charitable goals for their own merit, knowledge is clearly spreading about how philanthropy can trim Inheritance Tax bills and gild that generosity.

The IHT bill on an estate (in excess of the tax-free threshold) can fall from the standard 40% to 36% if at least a tenth is left to charity. This, experts say, has helped drive a real trend towards very substantial gifts, to the point that the number of millionaires leaving donations of more than £1m has grown by almost a thirdii.

Although wealthy individuals certainly pursue charitable goals for their own merit, knowledge is clearly spreading about how philanthropy can trim Inheritance Tax bills and gild that generosity

Interest in responsible investing and otherwise deploying capital to help a world in crisis has shot up this year from already quickly growing levels. Learning that significant donations can serve the dual purpose of also cutting death duties has really resonated with users fearing hefty bills for their loved ones.

Let us help with these (and any other) priorities

Eyes are now starting to turn to post-pandemic recovery, although of course multiple risks to wealth do remain. Questions about how best to balance risk and reward on the investment front, and which actions affluent individuals should be taking to head off taxation (and inflation) dangers are coming thick and fast.

We will be exploring a range of investment management and financial planning topics in direct response in the months to come. But don’t delay if you have a pressing question that you’d like to pose to an expert. We can arrange free, no-obligation discussions with a shortlist of leading wealth managers that will really put you in the driving seat this year, so why not make 2021 really count in your wealth journey?

i Schroders Personal Wealth
ii As reported by The Telegraph

Find Your Wealth's Paradise

We make the best advisors easy for you to access

Start Now

Find Your Wealth's Paradise

We make the best advisors easy for you to access

Start Now