Client trends: January 2023

The holiday period and the start of a fresh year have seen a spike in individuals seeking to take control of their wealth – across both financial planning and investment management matters.

A surge in wealth manager matching during the holidays

It may surprise you to learn that each year around 3,000 individuals submit their tax returns on Christmas Day itself. While we perhaps wouldn’t advocate that, we can certainly recognise the urge many people get to use the down time of the holiday period productively and to tick long-neglected financial housekeeping tasks off the to-do list. We saw something of this phenomenon ourselves, with a marked spike in enquiries coming in over the Christmas period.

We have in fact always seen these surges at the year-end, but for 2022/23 the trend was particularly pronounced – no doubt largely due to the seismic events which have and continue to rock the geopolitical and economic landscape. The coming April tax raid on the UK’s wealthier citizens acted as a huge spur too. Time and again in recent weeks we’ve heard questions like ‘How do I ensure my portfolio is well positioned for 2023?’ and ‘Is it too late to improve my tax position?’ It’s been great to see people taking advantage off their spare time like this.

Time and again in recent weeks we’ve heard questions like ‘How do I ensure my portfolio is well positioned for 2023?’ and ‘Is it too late to improve my tax position?’ It’s been great to see people taking advantage off their spare time like this

The holiday period may be over, but there should still be lots of ‘New Year energy’ in circulation and we would urge all those who are wondering if they could improve their financial position to take action now by speaking to us. We can help set you on a better path in no time at all – and at no cost. Simply take our short wealth manager matching questionnaire.

Couples want to get creative with their tax planning

As we have previously reported, the UK’s affluent have felt huge consternation about the coming increases to their tax burden. A combination of frozen if not slashed allowances have made many feel that there is little they can do to protect their hard-earned wealth. However, as we have been preaching, there is actually much that High Net Worth Individuals can still do ahead of April’s tax changes – particularly if they look at wealth on a family basis.

We’ve been hearing a lot from couples seeking tax efficiencies, so later this month we will be publishing a guide to how spouses and civil partners can pool their tax allowances and mitigate their exposure to the tune of thousands if done correctly. All couples should be considering this, particularly if one is a bigger earner than the other.

You are not alone – and nor are you powerless – if you are looking at IHT, pension allowance, capital gains, income tax or the Lifetime Pension Allowance askance. There are many strategies you can implement which could pay off handsomely post-April and for decades to come

But couples are just one part of the family wealth piece. Now might be a great time for parents and grandparents to think about topping up savings for their children in a Junior ISA, or even a pension. There are also lots of methods for gifting which can powerfully reduce Inheritance Tax (IHT) liability too.

You are not alone – and nor are you powerless – if you are looking at IHT, pension allowance, capital gains, income tax or the Lifetime Pension Allowance askance. There are many strategies you can implement which could pay off handsomely post-April and for decades to come. Get in touch to hear how the wealth managers on our panel have helped slash the tax bills of our users.

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Top Tip

People are always surprised when I tell them that the Christmas holidays and early January period are a particularly busy time for us, but over the years I have come to expect this as a matter of course. Rest, reflection and resolution-making – not to mention the very challenging investment environment currently – make the surge in enquiries we’ve seen in recent weeks just what I would have expected.

My tip to our readers is not to let this opportunity go to waste and to take wealth management action before diaries start filling up. Getting your first expert wealth manager (or switching to a better one) is likely to be among the best financial decisions you ever make, so why wait? 
Take our short wealth manager matching questionnaire to get the ball rolling fast and free.

Lee Goggin - Co-Founder

Lee Goggin

Co-Founder

Allaying fears over asset allocation

As ever, investment management questions have been driving as many people to our matching service as financial planning ones. In recent weeks, there has been a real trend towards people taking a step back to apply a critical eye to their asset allocation.

Ensuring that our portfolios are constituted with a judicious mixture of asset classes, markets, sectors, instruments and currencies is a key driver of returns, as well as being fundamental to managing risk. That recognition has been really in evidence as ‘resolutions season’ has got underway and predictions for the investment year have been everywhere one turns.

Ensuring that our portfolios are constituted with a judicious mixture of asset classes, markets, sectors, instruments and currencies is a key driver of returns

Our recently published piece on key themes for 2023 clearly had many of our users thinking hard, not only about the balance of their portfolios but also about the level of real diversification they have achieved. As our guest wealth management writer explained, uncorrelated hedge fund strategies should once again play an important role in diversifying portfolios this year, but even those with tastes tending more towards traditional assets should be checking on their strategy to see where returns might be boosted and risk dialled down.

Harness the New Year energy to make a positive change

Why not make 2023 you really take care of your pressing financial concerns? We and the wealth managers on our panel are sure to be able to help, whether they cover investment management, financial planning, retirement, inheritance, mortgages or even something more esoteric.

All the thousands of individuals we have helped since our launch in 2012 got started by taking one quick and easy step: completing our short wealth manager matching questionnaire to ascertain their needs. Dive right in if you have a clear idea of what you are looking for in an adviser and have a few minutes to spare, or, if you would like some speak to our expert and unbiased team, please don’t hesitate to get in touch.

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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