Need to coronavirus-proof finances
An alarming number of people have still not coronavirus-proofed their financial planning strategies, warns the CEO and founder of one of the world’s largest independent financial advisory organisations.
The warning from Nigel Green of deVere Group comes as the world faces a Covid-19 global recession, all major financial markets remain volatile, unemployment is rising, government coffers are under pressure and there is still currently no vaccine.
Mr Green notes: “In February, as major companies were issuing profit warnings and economies were beginning to feel the hit from coronavirus, we warned against complacency, urging people to reassess their financial planning strategies sooner rather than later.
“As the global public health crisis and the ensuing economic fallout has rapidly intensified, more and more people have, sensibly, been reviewing their strategies to ensure that they are still on track to reach their long-term financial goals.
“This is usually in terms of investments, savings, tax planning, pensions and retirement planning, wills, education fee planning, and foreign exchange.”
He continues: “However, an alarming number of people have still not moved to coronavirus-proof their financial planning strategies despite the growing need to do so.
“This is concerning as we can be in no doubt that the world has already changed because of the coronavirus pandemic - and it will do so more and maybe at a faster pace.
“For instance, we are moving towards an era of negative interest rates – this will negatively affect savings but bolster equity prices.
“And as always in times of increased turbulence, there will be winners and losers in the economy - and we’re already seeing this. This will mean job losses in some sectors and potentially unprecedented job and investment opportunities in others.”
Mr Green adds: “The shifts and the disruption will impact people’s finances. There will be a new normal and it would be sensible sooner rather than later to reassess your strategies to ensure that you are still on target to reach your financial objectives by mitigating the risks and taking advantage of the inevitable opportunities that arise during times of enhanced volatility.
“This is perhaps more important than ever as cash-strapped governments might be unable to financially provide for people the way they have done in the past.
“More than ever financial security is likely to become a personal responsibility.”
The deVere CEO concluded: “Your finances are too essential to let them drift off track during these unprecedented times.
“The time is now to review your financial planning.”
4 April 2020.