Some say, we never had it so good
Whilst the media project all the bad financial news with global economies such as China taking a tumble, as well as falls in the FTSE 100, there are in fact opportunities to be taken at times like this, especially for an optimistic investor.
Here are a few positive factors for consideration.
Increase in disposable income
Living costs such as fuel and groceries are reducing, interest rates remain low and inflation is floating around zero – all these factors contribute to an increase in disposable income amongst UK residents.
Many people now are financially better off than in recent years and will have spare cash from the monthly salary or drawing to invest, if they choose to.
Healthy dividends
The FTSE 100 appears, as a whole, to be healthy right now, so many shareholders will be receiving a dividend in exchange for their share investment.
If you opt to hold your shares within an ISA or a pension then any dividend issued will help to boost your “pot” and your returns.
From 2016/2017 the change in the way dividends are taxed should have a positive effect on those receiving dividends under £5,000 per year, from floated companies. If you run your own limited company business and draw dividends the same benefits may not apply to your overall position.
However, for investors, the new £5,000 allowance will enable dividend income to be received tax-free to this amount.
Read more – How the new dividend rules affect you
Better value in investing
FTSE 100* decreases over the past 6 months, could mean an opportunity to purchase equities at a lower value, as is the usual pattern.
Investments can take time to mature and there are of course no guarantees of profit. However, with investments more affordable, it could be a good time to gain market exposure.
*http://www.londonstockexchange.com
Lower charges
With financial providers in high competition with each other, there are deals to be gained from shopping around. Lower admin charges for products like pensions, investments and ISA’s all-in-all leaves more in your back pocket.
Dental & Medical Financial Services are investment specialists for doctors and dentists. Call today to discuss your financial goals.
Tel: 01403 780 770