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With Euro 2020 coming to a climax, the Wimbledon grass renewing its familiar battle with the rain and the Tokyo Olympics apparently still around the corner, we might be forgiven for feeling that everything is already back to ‘normal’. The delayed release of full restrictions, however, coupled with increased cases of the Delta variant mean there is still some way to go. But the curve appears towards optimism as the summer wears on.

Rates on the rise…

Although the Bank of England’s base rate has been 0.1% for over a year, other interest rates have been on the move. Most notably, yields on long-term government bonds have more than doubled. That is good news if you are nearing retirement and thinking about a pension annuity, as rates have risen.

The value of your investment and the income from it can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.  

Up to £15 billion is believed to be sitting in ‘lost’ savings accounts, premium bonds and pension and investment accounts.

Many people lose track of accounts when they move house, misplace statements or even change computer and forget to update their login details. Tracing these assets can be complicated, particularly after banks or investment companies merge or rebrand.

Share, record, research

Second property purchases in the UK have boomed according to government figures, with second home sales rising 30% over the past five years. 

The recent Stamp Duty holiday has further increased activity in the housing market, as many people look to benefit from this short-term tax concession.

There has been huge growth in the number of ‘sustainable’ and ‘responsible investment’ funds, which now look at a company’s environmental, social and governance (ESG) track record as part of the investment process. However not every ‘green’ label should be taken at face value.

In some cases these terms are simply being used as a marketing tool — a trend known as ‘greenwashing’. Investors might assume they are in a climate-friendly fund, but the reality could be quite different.

Inertia can be a dangerous trait, especially for investment.

You know the feeling. Sometimes it just seems easier to leave things be for another year rather than take any action. However, putting things off means risking costly problems that could be avoided with regular maintenance.

The freezing of many tax thresholds and allowances has increased the importance of family tax planning.

In his spring 2021 Budget, the Chancellor announced many tax allowances and thresholds will not change until April 2026. By 2025/26 the government expects 1.3 million more people to be paying income tax and 1 million more to be higher rate taxpayers than would be the case were thresholds inflation linked.

Last year many companies were forced to cut or suspend dividend payments. This year, the reverse is happening and dividends are generally on the up.

Source: Link Asset Services

Most over 55s have no idea whether there might be inheritance tax (IHT) to pay on their estate — or what the liability might be.

Since 2009 the threshold above which IHT applies — known as the nil-rate band — has stood at £325,000 (or £650,000 for married couples and civil partners). The recent Budget froze the threshold at which IHT becomes chargeable for a further five years.

Most of the world’s major stock markets are at or close to their all-time highs, but that is not necessarily a reason to stop investing. 

Global stock markets have been performing strongly since the first successful vaccine trials in November 2020. Even the UK, which has lagged behind in recent years, has picked up, with the FTSE 100 index crossing the 7,000 barrier again.

If the flow of “…hits new high” headlines has given you doubts about investing now, there are several strategies to consider: