Welcome to CHIPS & Co
The collapse of Lehman Brothers on the 15th September 2008 was the start of a Banking Crisis, and not a Financial Crisis, Governments were forced to rescue the Banks to enable us all to continue with our daily financial transactions.
In September 2008 interest rates had been set by The Bank of England within a “normal range” of 5.00%, but this was gradually reduced and on the 5th March 2009 an emergency rate of 0.50% was introduced, leaving a generation of saver’s to receive historically low interest rates, and see the value of their capital eroded by inflation.
The unintended consequences of Government’s failing to “normalise” interest rates within a reasonable time from the Banking Crisis has created a substantial rise in house prices. Public Sector workers were asked to accept low pay rises (austerity), average income earners, and first time house buyers have had difficulty in purchasing a new home at an affordable price.
Ironically, risky investments in the Stock Market either direct or through holdings in Unit Trusts, Investments Trusts and Pensions have done very well, driven by high Dividend payments which currently exceed interest rates, this imbalance may change in the future as interest rates begin to “normalise”.
Asset backed investments always carry a risk of falling in value, therefore it is very important that all existing investments, pension plans and money held on deposit with Financial Institutions are reviewed on a regular basis to make sure that they still meet with your financial objectives and expectations.
The information contained in this web site is for general information only and is not investment or tax advice. If you would like to discuss your existing investments to make sure that that they are still appropriate for your current circumstances or how we can offer you guidance, please contact us via the details in this web site.
Consultations are done in the privacy and comfort of your own home or office.
Call us today on 0161 485 5813
“Living Today, Planning for Tomorrow”