Can we ever believe what we are told? Coffee lovers are the latest to have their world turned around.
For years, we have been warned about the effects and dangers of too much caffeine; the popularity of de-caffeinated coffee has grown in an attempt to reduce our intake.
Now it seems there is a great benefit through drinking coffee - protecting you against diabetes and dementia, less risk of premature death and even suicide, according to recent American research.
That news, combined with the sight of George Clooney extolling the virtues of drinking quality coffee from specially-designed cups and machines, are bound to have sales soaring.
Of course, we have to take the advice of experts on trust. As with an Independent Financial Adviser (IFA), that advice is usually accompanied by a wealth of experience, qualifications and back-up information and statistics.
But, landscapes, whether financial or lifestyle, do change gradually over a period of time.
Our own landscapes vary, too. Do you look at the world in the same way you did when you were 20, or 40 or 60? Of course not! Your desires and demands are different – you’ve moved on (perhaps) and so has the world (again, maybe).
Some landscapes are transformed dramatically, such as after the financial banking crisis of 2008; but the shockwaves can last for years, as we are increasingly finding out.
The UK is now in the longest period of deflation in its history – or since records began – after inflation remained at -0.1 per cent in October for the second month in a row. The figure has been at or close to zero for nine months and is at its lowest level for 55 years, according the Office for National Statistics (ONS).
The prices that have fallen significantly in the past year are fuel (down 14%), energy costs (4.1%) and food and drink (2.7%). Prices on the up have been clothing and footwear, as well as drinking and eating out.
This confirmed the Bank of England’s view in its latest monthly report that the global economy was weakening, reducing the risk of inflation. Now many experts believe the UK’s long anticipated interest rate rise could be late 2016 or even 2017.
That’s good news for those borrowing – and more pain for those who save, especially those that rely on those savings for income. National Savings and Investments (NS&I) have just cut the rate on its Direct ISA (Individual Savings Account) by 0.25% to 1.25% annually – the lowest savings rate since this ISA was launched in 2008.
NS&I are not the only ones; many other ISA providers, like TSB and HSBC (who said it was “a difficult decision”) have made recent reductions. In October 2014, the average instant access ISA rate was 1.09% - now it’s 0.98%!
The ONS has just revealed another trend that will affect the way we live over the next few decades – “later motherhood”. Figures show that, for the first time ever, more babies are being born to women aged 35 and over than to those who are under 25.
The data from the ONS also showed that very soon babies born within marriage are going to be in the minority – in 1999, the total was 61%, in 2004, it was 57.8% and last year, the figure was 52.5%.
Last year 45.3% of British-born mothers who gave birth were married – the total for foreign-born mothers was 72%.
Those figures are not as much a threat to traditional society as might appear. Last year only 5.4% of births were “sole registrations” – one parent only. In 1997, that figure was 8%. It appears that UK couples prefer co-habiting.
Women, over a period of time, have decided to finish their education, establish a career and get more financially secure before starting a family.
There has long been an argument about the merits of flogging yourself hard early on in order to create the resources that allow you to focus on the rewards of life in style long before traditional retirement – rather than take the long-term, gentler approach to work and reward, enjoying your children while you are young, and later grandchildren.
Many don’t have the choice, being in professions that don’t pay well early on or require many years of qualification. Since the recession of 2008, many youngsters, often university graduates, have been grateful for a job, rather than the career they once envisaged.
More importantly, we can plan all we want, put everything in place, to little effect. One chance encounter can change everything; suddenly you are walking down the aisle ten years ahead of schedule and the original script is being used for confetti!
There are some aspects of life that do need careful thought; financial planning is one of them. Finance has to control your life to some extent; but, rather than dominate and dictate, with the help of expert advice, it should bend and adapt to suit your various choices and changes.
It helps if your adviser has an idea of what you are trying to achieve with your life and your money – today, tomorrow, in ten years, twenty years and beyond. Some of us think we are going to live forever; others believe they are not going to make old bones and will die young.
Recent world events, including Paris, demonstrate just how vulnerable and precious life is. To most, they reinforce what is really important in life – friends, family and genuine freedom.
For a free, no obligation initial chat about your individual finances, call us on 0800 0112825, e-mail info@wwfp.net or take a look at our website www.wwfp.net.
The value of shares and investments can go down as well as up. Your home may be repossessed if you do not keep up repayments on your mortgage
Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Conduct Authority. 'The FCA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
All information is based on our understanding of current tax practices, which are subject to change.
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