Throughout you’re working life, it is likely you have paid in to a pension scheme or have an amount of money saved and invested with the future in mind. With dramatic changes occurring in the financial market, many are finding pensions and investments have dropped in value.
There are a number of options you can consider at this stage if your investments have dropped in value. However, throughout turbulent times, many Independent Financial Advisers are remaining calm and have a number of reassuring messages to pass on to their clients.
- Despite drops and turbulence being experienced in the financial market, subsequently investments have dropped in value, there is little value in panicking.
- The UK financial market has experienced turbulence before. And although previously investments have dropped in value, there has ultimately been gains since these times.
- A good investment strategy, although never fool proof will support your investments though this period of time.
Seeing that investments have dropped in value.
Large media outlets are currently guilty of spreading a certain amount of fear regarding the financial impact of the current global changes. Those with even a slight interest in the financial markets may be concerned about the impact on their own investments and pensions after viewing articles and reports with unavoidably large headlines. Mostly stating that dramatic losses in the financial markets.
As with all investments, at any time of year, there is potential for investment values to increase or decrease. This is a topic that will be discussed by all independent financial advisers ahead of proceeding with any financial advice. A clients attitude to risk will directly influence the way in which portfolios are invested. An experienced financial adviser will demonstrate clearly how their clients pensions and finances are invested in accordance with their unique attitude to risk, as well as ensuring these are inline with their personal circumstances and requirements.
We’ve seen turbulence before.
Although the markets fluctuate daily, with small gains and small drops, seeing such a large drop overall can trigger a panicked reaction. These reactions can trigger rash decisions by investors after seeing investments have dropped in value.
Ultimately, market change is inevitable. Current global circumstance have caused much disruption and a significant drop, subsequently investments have dropped in value. However, within the financial market, this is something that has been seen before. Although the causing circumstances maybe different, the impact is the same. Investments value has dropped.
Experience is gained from previously turbulent times. Independent Financial Advisers prepare well for these occasions, despite the rarity of such events as a global pandemic.
During these times, there is a temptation to withdraw funds to prevent any further losses. Or for those that make regular contributions, to stop these. It can be distressing to see that investments have dropped in value. Seemingly loosing money. During times when investments have dropped in value, Financial Advisers will be monitoring the situation very carefully. More often, remaining extremely calm and considering all options for those with affected portfolios.
However, have faith. Taking good advice will put you in good stead to see values of investment rise again. With the support of a Financial Adviser you can trust, panicking about investments falling in value is a poor use of your valuable time, having a strategy in place is the best way to remain calm in regards to your investments and pension. Key advice after seeing that investments have dropped in value is often to leave investments within investment portfolios and continue making any contributions as before.
It is very satisfying to watch the value of investment portfolios and pensions rise again during market recovery periods. Investing rather than crystallising is more often the smartest move in the long run.
The team at The Harvest Partnership Ltd are able to offer support and guidance in regards to your investment portfolio and pensions. We are always available to our clients and future clients to ensure they receive the right advice that is relevant for both the current period of time as well the future.
Please visit our Contact Us page.