It’s the end of the month already which means today I’ll be providing insight into an area which may help with your future planning. This month we are focussing on the ‘Bank of Gran and Grandad’. Not something which comes into play for me yet, but for some of you financially supporting grandchildren is becoming an important consideration.
We wrote about inheritance tax in our last edition, and it attracted a lot of attention and so we thought we would write an extension of that article with a focus on a specific generation, albeit one that can transcend a wide age range.
However, we can’t ignore what is happening out there in the economy, as once again, central banks have increased rates. On Wednesday of this week, the Federal Reserve (Fed) increased US interest rates by 0.25%, with the headlines screaming “the highest rates for 22 years”. The European Central Bank (ECB) have also followed suit with an increase of 0.25% yesterday with the headline “highest since the year 2000”. The Bank of England will undoubtedly follow suit in August.
How have the markets reacted? They have not been phased by the increase in rates as they were fully expected and were already built into market prices.
- Bank of Gran and Grandad
- Market movements
- A boost for Asian shares
Bank of Gran and Grandad
Normally, we read a lot about the bank of Mum and Dad, but this week, inspired by an article I read in the FT (by Clare Munro tax adviser at Weatherbys Private Bank), I thought I would move up a generation and focus on Gran and Grandad. As you will know, our focus as financial planners is for you to enjoy your money whilst you have good health. So important. Yet, you can only do this with confidence, in the knowledge that you will never run out of money.
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Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.