Is your wealth prepared for political volatility? Here are 3 reasons to prepare your wealth for the election.
The looming General Election underscores the need to have a professional wealth manager on board to help you navigate a potentially tricky investment landscape. Here are three reasons to prepare your wealth for the election, explains Lee Goggin, co-founder of findaWEALTHMANAGER.com.
It is becoming increasingly evident that the forthcoming UK General Election will be important for a number of reasons. Political commentators suggest that it will be the most important vote for decades as the election campaign flickers into life.
As the parties mangle economic statistics and play the blame game, you would be forgiven for switching off until you walk into the polling booth on Thursday 7 May. That would be a mistake – not only for your political wellbeing but also for your wealth. There is likely to be significant volatility ahead. Here are three reasons why:
- On current polls, a hung parliament is likely, but the combination of parties is not easily predictable. We can’t just guess that it will be Conservative/Lib Dem again, nor even that it would be Labour/Lib Dem. It could be Conservative/UKIP, or even Labour/SNP/Sinn Fein.
- A firm coalition is also unlikely. The Liberal Democrats have seen their vote completely disappear. They have regularly polled poorly compared to UKIP for months, and their voters are deserting them in droves. Having seen this, which minor party would choose a coalition that might destroy them? So, we could get a minority government, propped up only over certain votes, which could be even more unstable than the coalition we have had.
- It might take a long time to arrange a workable government. Again, the situation from 2010 is not a guide for how this might work out this time – if anything it is a warning to the minor parties that they need to take their time or suffer the consequences of not getting their agenda across.
So, the story doesn’t end on May 7; it only begins. This puts a risk premium onto UK assets, which means that they could be more volatile going forward, and may see outflows as international investors hedge their exposures. You need to consider how your investments are positioned and whether you might need some professional help in weathering any impending financial storm.
So, how can you ensure you sleep better at night, and not just in the run-up to the election, but afterwards too? Think about finding a well-matched wealth manager for your financial future.
If you haven’t considered using a wealth manager before – or if you haven’t reviewed your existing manager to check their competitiveness and suitability try our smart online tool. Or, if you would like to discuss your situation with our straight-talking team, please do get in touch here.