Smith & Pinching offers financial advice for Christmas and New Year

Phil Beck: We’d like to wish everyone happiness and prosperity for the year ahead. Twelve months ago we were hoping for better times in 2022, looking forward to finally getting Covid-19 under control and seeing UK plc re-establishing itself in the global marketplace following our departure from the EU. Unfortunately, this has not been the case – and in many respects, the year has been unprecedented. We hope 2023 will see a path to economic recovery, as I’m sure everyone does.

Diane Fish: The festive season is the time when many of us spend time with those we love best – family and friends. It’s important to remember that it’s often their presence not their presents that are the most valued. For most families, it may be a less lavish Christmas, but that doesn’t mean it has to be less special. A bit of moderation now may well make all the difference.

Diane Fish, independent financial adviser with Smith & Pinching (Image: Smith & Pinching)

Phil Beck: It’s equally important to be realistic about savings and investments. Rising interest rates are giving savers better returns than we’ve seen in recent years but they are still well below the rate of inflation, so savers are losing money in terms of their purchasing power.

Diane Fish: It’s been a difficult year for house-buyers too. Property prices saw some dramatic rises and borrowing has become more expensive. Rising inflation and interest rates have combined to stretch many families’ budgets and people are genuinely struggling to keep up with their repayments. Lending has changed but there are still lots of choices and options.

Phil Beck: For those with investments, a strategy of keeping calm and carrying on is usually the best one. Investing is all about the long term: investors who can afford to wait for five to 10 years, only selling when markets improve, should still see overall growth, but if you have a short-term need for your money, it’s critical to plan accordingly.

Diane Fish: Our New Year message to you is to make sure that you are getting the most out of your planning for both your wealth building and your borrowing. There are ways of optimising your opportunities and resources – too many to list here – so taking independent financial advice can make a real difference.

Any opinions expressed in this article do not constitute advice. The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

For more information, please visit www.smith-pinching.co.uk