When was the last time you had a financial review?

Remember the halcyon days of rising property values, the FTSE over 6500, inflation under control and interest rates at a sensible level for business and consumers alike?

In June 2007, the FTSE was just under 6600, but less than 2 months later, had dropped to less than 5900 – that’s a drop of over 10%, what did you do about it? A regular review of your investments and advice from an Independent Financial Advisor is essential if your investments are to grow. Many people faced with this situation might panic and sell... could they be missing the bigger picture?

The second chapter of the last year's trading saw the FTSE recover to over 6600 in the following 2 months and the trading figures for March to May 2008 recorded a 15% rise. These recoveries would have meant considerably more to a regular investor because of the compounding effect of buying more units for the same price.

Even falling markets can be seen as no cause for panic for the long-term investor, because a falling market can be an opportunity to snap up good solid investments at discounted prices. Take the banking sector, for example, yes it’s having a bad time of things at the moment, but over the last 20 years the banking sector has out-performed all other industry sectors by a factor of nearly three times, so investing when the stocks are cheap is simply an even more effective way of boosting your returns.

How to protect yourself in uncertain times

Insurance.

When times are good, most people struggle to see the wisdom in having insurance against redundancy or loss of income "Hey, my company's doing really well, my job is safe." But when costs go up and budgets get tight, the company accountant brings out his red pen.

Would you pay a three figure insurance premium to cover a five or six figure asset? Most people have Contents Insurance for their home and Comprehensive insurance for their car, but how many of us protect our Earnings Potential with an insurance policy? They are not as expensive as you might think, and in tough times, it’s nice to know that you have a little security to back you up. These policies can be complicated so it’s important to get the right one for you; talk to your Independent Financial Advisor about Insurance today.