Client trends January 2022: Serious ambitions to start off the year

We always see an uptick of users at the start of a new year, but 2022 is shaping up to be a record-breaker for people getting proactive about their wealth.

Performance is really being put under the spotlight

The new year, fresh-start feeling January gives us seems to be translating into a real determination from our users to ensure they getting the very best investment returns they can. Naturally, a lot of our conversations with High Net Worth Individuals focus on performance month in, month out, but the emphasis is noticeably greater as 2022 gets underway.

Users tell us it is difficult to know what good “looks like”, which is why every month in our newsletter we publish figures which aggregate figures from a wide selection of wealth managers to indicate what the industry at large is delivering. For the month of December 2021, for instance, MPI Indices estimates that managers of medium-risk portfolios made gains of 1.28%.

Users tell us it is difficult to know what good “looks like”, which is why every month in our newsletter we publish figures which aggregate figures from a wide selection of wealth managers to indicate what the industry at large is delivering

Those same figures show that over five years, managers of medium-risk portfolios have made 31.15% in cumulative returns for their clients. If that level of performance isn’t similar to what you are seeing, we would urge you to consider other options. And, even if the difference seems relatively small, do still think about upgrading your manager as incremental differences can compound to make huge ones over the years.

Boosting pension pots once again to the fore

All the talk has been of “boosting” of a very different kind as the next round of coronavirus vaccinations takes place, but even amid these strange times – or perhaps even because of them – people are noticeably thinking harder about their pension provision.

Our recent content has been focused on the fact that there remains a huge gender gap in retirement savings. However, the reality is that many, many people of both sexes, and even those who have very significant incomes indeed, are simply not saving enough. Some wealth managers say that as few as 30% of individualsi they encounter are putting sufficient funds to work to maintain their desired standard of living.

The harsh reality is that people are living longer, are likely to receive far reduced government support in their old age and face a future where the jobs they do today may not even exist anymore – so it’s no exaggeration to say that great trouble is being stored up for the future

The harsh reality is that people are living longer, are likely to receive far reduced government support in their old age and face a future where the jobs they do today may not even exist anymore – so it’s no exaggeration to say that great trouble is being stored up for the future. Your pension is an exceptionally tax-efficient way to save for retirement, and with the right wealth manager in place you can really put a rocket under your pension pot’s growth. Why not use our fast and free matching service to speak to a few leaders in the field and find out how you can make your funds deliver more year after year?

i deVere Group
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Top Tip

Discussions with our users about performance numbers are among my favourite, and not just because I used to be in banking myself. These are the conversations which I know will make a huge difference to the attainment of people’s goals because when a person stops settling for less, they immediately set themselves on a path to a far better financial future.

If you are unsure if the performance you are seeing really is good, why not let us solve the mystery for you by setting up a “beauty parade” of alternative providers – all free of charge.

Lee Goggin - Co-Founder

Lee Goggin

Co-Founder

The savvy brace for a raft of tax hikes

The government has so far (relatively) stayed its hand when it comes to tax increases, preferring instead to freeze a number of allowances as a means of stealthily bringing more people into the net by way of inflation. The Lifetime Allowance (LTA) is a prime example, the freeze at £1,073,100 until 2026 causing huge consternation among those at risk of breaching the limit well before then – something easily done with even modest investment returns taken into account.

However, it is plain to see that the state of the public finances is going to call for tougher measures before too long and the fact that the government opened consultations on a number of taxes – including the loathed Inheritance Tax (IHT) – in the autumn of 2021 bodes ill indeed. The savvy are now seeking ways to minimise their tax bills in real earnest, as comes through very strongly in our discussions with investors.

As we always preach, tax mitigation is a central plank of sound wealth management. In fact, many would argue that this warrants just as much attention as securing robust investment returns

As we always preach, tax mitigation is a central plank of sound wealth management. In fact, many would argue that this warrants just as much attention as securing robust investment returns. Not all wealth managers have financial planning provision in-house, but the majority of those on our panel offer this as well as investment management and much more besides. You don’t need to spend hours finding out which firm does what; let us do the heavy lifting of filtering the market to find exactly what you need.

Best foot forward

A huge range of concerns – along with hopes and ambitions – bring affluent individuals to our site. And, while we find that people can often take some time to “pull the trigger” and find their first or a better-matched provider, the start of 2022 is taking a highly proactive tone. We’ve never been busier.

The threats to our wealth are many and growing currently, whether it be inflation, the growing tax burden or the difficulty of finding good-enough investment returns in what is still a very, very uncertain world. The good news is that the defensive moves you can make are just as numerous. You only have to seek them out.

The threats to our wealth are many and growing currently, whether it be inflation, the growing tax burden or the difficulty of finding good-enough investment returns in what is still a very, very uncertain world

By taking up our offer of some free, no-obligation discussions with a shortlist of firms perfectly matched to you, you can quickly discover if you really are doing everything you can to protect and grow your wealth. To get a flavour of what the wealth managers on our panel have achieved, read a few of our case studies. Better still, let the leading firms we work with explain their track records themselves!

Important information

The investment strategy and financial planning explanations of this piece are for informational purposes only, may represent only one view, and are not intended in any way as financial or investment advice. Any comment on specific securities should not be interpreted as investment research or advice, solicitation or recommendations to buy or sell a particular security.

We always advise consultation with a professional before making any investment and financial planning decisions.

Always remember that investing involves risk and the value of investments may fall as well as rise. Past performance should not be seen as a guarantee of future returns.

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