We seem to have had more than our fair share of market volatility in recent years. This year’s turbulence on equity and bond markets has left many investors feeling queasy. But we’ve had it much worse.
When retirees are considering options for their accumulated pension fund at retirement, having taken a tax-free lump sum, there are broadly speaking two options. The first option is to use the fund to purchase an annuity – this in effect exchanges the fund for a guaranteed level of income payable for life. The second option is to keep the funds invested in an Approved Retirement Fund (ARF), which can benefit from further tax- free growth and flexibility of drawdown.
From January, first-time buyers will be allowed to borrow up to 4 times their household income.
One story has dominated the economic news in 2022 — inflation. Around the world, prices have risen far faster than forecasters were expecting, as a result of knock-on effects from the Covid-19 pandemic, the war in Ukraine and strong consumer demand.
Investing is easy when portfolio values are going up. We hardly notice the occasional market decline and, if we do, we might be tempted to view them as a buying opportunity. And that’s what investing is like in an average year. But 2022 has been anything but average.
As regular readers of the Biograph blog know, most active fund managers underperform for most of the time. The evidence is overwhelming. A common response to that assertion from those who advocate active management is that active funds do prove their worth in periods of market volatility and in bear markets.