Our Views on the Markets and the Economy
Articles, investment updates and economic analysis
Our CEO Charlotte Ransom regularly answers questions for readers of the i paper – helping them to better understand their investments and how to effectively plan their finances to achieve their long-term goals. Many of these questions are also highly relevant for Netwealth readers.
Last June I wrote a column in the Financial Times saying that interest rates should – and would – stay higher for longer in western economies. At that time it was not the accepted norm. It is now.
We often hear about the importance of reviewing our wills and estate plans, but what about your pension? When you pass away, your pension will normally not be part of your estate and therefore exempt from inheritance tax. So have you ever thought about what happens to it after you're gone? That's where something called an 'expression of wish' form comes in.
What will happen in April? Let’s first remind ourselves of some of the notable events over the last month: the UK Budget, which reflected the weakness of the economy and this in turn limited the Chancellor’s room for policy manoeuvre; China’s annual Two Sessions in which an achievable growth target of 5% was outlined for this year; the Bank of Japan’s (BOJ) decision to shift away from its negative interest rate policy (in place since 2016) and raise policy rates above zero; and the Swiss National Bank (SNB) deciding to cut policy rates and becoming the first major western economy to embark upon monetary easing.
While the end of the tax year on 5th April is fast approaching, there are still things you can do to make sure your finances are in order and to ensure you are being as tax efficient as possible.
This week’s decision by the Bank of Japan (BOJ) to hike interest rates and to move from negative to positive policy rates is a potentially monumental decision. It suggests that the BOJ thinks, finally, that the economy has turned the corner. I think it is right.
In recent years, Japanese stocks have enjoyed a period of stellar relative performance. Their resilience during the broader market weakness of 2022, followed by their outpaced rise during 2023 and so far in 2024, has been especially striking.
International Women's Day (IWD) celebrates the social, economic, cultural and political achievements of women on 8th March every year – and signifies a call to action to accelerate gender parity. Its ethos is very much in tune with the equality we foster at Netwealth: whether the environment we ensure to help a diverse employee community thrive, the leading roles women occupy across our business and also borne out in the ~50:50 ratio between female and male clients.
Three issues come to the fore in the wake of yesterday’s Budget. First is the fundamental challenge of Britain’s weak trend rate of growth. Second is that while the two pence cut in national insurance was welcome, it should not divert attention from the need for tax simplification and reform and that the UK’s tax take is high and still rising. Third, the challenge of low public investment, and the challenges facing non-ring-fenced departments in coming years.
Team Contributors
Gerard Lyons
Charlotte Ransom
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“I’m worried about the fees on my £600k pension pot. Are some costs being hidden?”
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Wealth management uncovered – clients will be the winners and it’s long overdue
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“I’ve inherited £240k. Should I ask a financial adviser what to do with it?”
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“I’ve just got divorced – how should I invest my £460,000 settlement lump sum?”
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“My husband and I downsized – what should we do with the £330k?”
Thomas Salter
Iain Barnes
Simon McConnell
In The Press
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Read what the press have to say about Netwealth
