McHardy Financial - Financial Planning and Investments Update

April 2020

Investment Values

We are all aware that the investment markets have been going through a significant amount of volatility in recent weeks. This was not in anyway expected and we have seen steep falls in trading across various global stock markets. It is important to note that actually removing from an investment will turn a paper loss into a real loss. Our advice on this therefore remains 'retain your investment / pension portfolio and only draw out of the portfolio what you need in the short term. Medium to long term investing is exactly that and we need to give the markets time to recover.

Income

For those of you currently drawing an income from your portfolio , we would suggest, where possible , you consider reducing the strain on your portfolio by reducing your income. We do encourage clients to maintan a cash reserve for times like these , so any income reductions made should now be topped up as required by dipping into your cash reserves. A reduction of income , where possible , of say 20% plus should be considered , but obviously those with smaller cash reserves or those with lower risk portfolios may consider a lower reduction. Once the markets start to recover , we can then consider increasing your ncome again and replenishing your cash reserves. Should you wish ti instruct us to implement a reduction in income then please email your adviser directly.

Reviews

In view of restrictions, annual reviews will be done over the telephone or video link such as skype until further notice.

Staff

Our team are now set up and working from home. We are picking up emails and calls and have full access to client records and provider systems. Work should therefore be carried out without any delays.

Summary

In summary whilst we have not seen this specific virus before, we have all been through market volatility where in time a recovery occurs. Stay well and please get in touch with your adviser if you have any queries.

McHardy Financial