Outlook from Kunle

OUTLOOK

Fr Kun

In a review meeting this year, a client and I were talking about his estate planning.

“Kunle, everything is all in order. I can only imagine there being an argument over one item. The kitchen table. Why? Because that is where so many fond family memories were created.”

I love the fact that the most sought after item was one that symbolised family memories. This got me thinking about memories, about what we remember or perhaps what we ‘choose to’ remember and of course, what we forget.

There is no doubt that, from a nancial point of view, this year has been a di cult one. Since December 2009, base rates have been 0.5% or less and in the last few months alone it has risen to 3%, which is a considerable hike.

OUTLOOK

But it’s easy to forget that for the 15 years prior to 2007, the base rate uctuated between roughly 4.5% and 7%. Rates were considerably higher than they are now and that was the norm. Having a base rate at the level it is now is an adjustment and may not necessarily be the anomaly you might be tempted to think it is.

Similarly, the investment markets have uctuated more than ever. Yes, investments do fall in value as well as rise, but it’s also worth remembering that investment markets tend to fall 25% of the time and rise 75% of the time. And already, at the time of writing, the FTSE 100 is 300 points o its 12 month high, although the FTSE 250 is still lagging behind its 12 month high.

Interest rates and the investment markets are two areas that have caused a lot of panic and upset amongst many of us. But it’s in times like this that I remember Dr Martin Luther King’s quote:

“The ultimate measure of a man is not where he stands in moments of convenience and comfort, but where he stands at times of challenge and controversy.”

So, as a company, we have spent a lot of time over the last few months nding out how our clients are and increasing the level of communications, which have centered around the two aforementioned topics plus the impact of in ation.

The priority was to refocus attention back on their long term plans, what they want to achieve – the important things in life - and making sure everything is still in place to make that happen. When turbulence hits, it can be easy to forget the plan, to forget that we can adjust and that we can adapt. And while some of the conversations were di cult and some of the stories alarming, we were able to remind people of the plan, focus on facts (not just media hyperbole) and to remember what really matters.

Here’s to better memories. Wishing you all a better 2023.

“The ultimate measure of a man is not where he stands in moments of convenience and comfort, but where he stands at times of challenge and controversy.” Martin Luther King