Money Matters with Tony McGarrity

Football and Stock Markets - is there any correlation? Surely there must be. From the volatility of the South Americans, to the defensive strength of the Northern Europeans.

From the dynamism and excitement of the emerging African talent to the unpredictability of the East Europeans – each of these descriptions seem to apply equally to their stock market indices as well as their national teams. Of course there is one certainty where you can see a direct correlation - our own UK FTSE100 can’t do penalty shoot outs either. The serious point to take from this analogy is that a broadly diversified portfolio is a sensible idea.

Regular reviews of both your own circumstances and the performance of the portfolio are required to ensure your investments are in line with your objectives. There are many approaches to managing money and the only correct method is the one you understand and feel comfortable with.

The same rules apply to your overall personal financial plan which should be structured, reviewed and tactically adjusted if required. Governments often substitute one policy for another which can have an impact on your plan.

Retirement planning can often run into extra time, particularly as annuity rates are falling so you can no longer simply assume everything will fall into place for you. On the defensive side of things adequate insurance provision is fundamentally important.

One last requirement is to appoint a good manager to oversee your plan. A successful personal financial manager should take your circumstances and objectives and deliver what you want above all else. Often we are asked to deliver the equivalent of the ‘moon on a stick’ which is where a good manager should be able to manage your expectations appropriately. There should be little surprise with a robust plan.

Hopefully, though, by setting up a tax efficient solution for you or at the point of retirement you will be ‘over the moon’. The World Cup only lasts four weeks whereas your financial plan could run into forty years so it is important to get it right and keep it relevant.

n SMCG Wealth Limited are authorised and regulated by the Financial Conduct