Advice

Focus on future returns

The financial uncertainty that the global recession has caused, has made investors focus on short term preservation of capital and in the process have lost sight of their long term financial objective.

It’s a harsh reality of life that the cost of most things that we need to buy have dramatically increased over the past ten years and this process appears to have accelerated over the past five years in particular. The effect feels worse as salaries do not keep pace in relative terms, reducing your spending power. It’s bad enough when you are working but for people that are retired the impact is even more dramatic.

To illustrate this here are a couple of statistics

• Between 2002 & 2012 – House prices rose by 52% (1)
• Between 2002 & 2012 – One litre of petrol rose by 77% (2)
• Between 2002 & 2012 – A loaf of white bread rose by 112% (2)

(1) Halifax price index, seasonally adjusted all regions
UK Q2 2002 – Q2 2012
(2) Office of National Statics July 2002 – July 2012

“So what do I do with my money?”

Build a more dynamic, diverse portfolio based on your future goals, your investment time horizon and appetite for risk. At Johnson Gibbs we can help you to find the investment solutions to focus on your investment objectives for your financial future.

Whilst some economies are struggling it doesn’t mean all companies are. We consider funds, which invest in high quality companies with strong balance sheets, robust business models, sound management and attractive growth prospects in fast-growing areas of the world. Many of these companies also pay real and growing dividends, offering investors the flexibility to either draw their income to fund their lifestyle today or reinvest it to grow their total return in the long run.

Stockmarkets inevitably move up and down, yet equities have proven to deliver capital growth and rising income over the longer term. For this reason, different investors at almost all stages of life can look to equity income investing to support their lifestyle, or help build towards a significant future expense, like school fees, retirement or that Aston Martin DB5 that you always promised that you would own some day. At Johnson Gibbs we have a range of inspiring investment ideas that may help you to improve your financial situation.

Please note past performance is not a guide to future performance.

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