winter/spring 2017 myfuture… · your spending “get your finances under control.” monitor what...

Here’s to Healthy Finances

myfutureWINTER/SPRING 2017

Lessons your granny could teach you about money

What’s in store for markets in 2017?

Don’t miss a trick with debtTHE

Also featured...

FIDELITY’S RETIREMENT SAVINGS MAGAZINE

Fidelity’s View:

MYFUTURE WINTER/SPRING 20172

14 Spotlight on: Fidelity’s Investment GuideBe smart about investing your savings

15 Fidelity’s ViewLessons your granny could teach you about money

16 The InsiderWhat’s in store for markets in 2017?

Contents10 Five Minutes with…

Fidelity’s Ed Monk on scoring a goal in extra time

11 Top 5 TipsWant to save some money?

12 Ask PennyPenny Lummes breaks down the steps to get your plans moving

4 Money Multimedia Taking care of your financial wellbeing

5 Number PowerDon’t miss a trick with debt

6 Here’s to Healthy Finances Time to focus on your financial wellbeing

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MYFUTURE WINTER/SPRING 2017 3

Issued by FIL Pensions Management. Authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No. 201514. Registered offices at: Oakhill House, 130 Tonbridge Road, Hildenborough, Kent, England TN11 9DZ. Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo and F symbol are trademarks of FIL Limited 2016. UKM0516/9827/CSO8296

Julian Webb Head of Workplace Investing

Welcome to myfutureWe’re thinking about financial wellbeing in 2017, and want to encourage you to do it too.

Financial wellbeing means getting your finances in good shape. Whether it’s having a budget you stick to, finding ways to cut your spending, putting what you save to good use, or keeping a handle on debt. Of course, it also includes thinking about retirement.

It’s all achievable. And the best part is you’ll feel the benefits long past the end of this year. Find out more in Here’s to Healthy Finances.

myfuture is, in fact, always focused on your financial wellbeing. This edition is no exception. Be reminded of some sound, old-fashioned money advice in Fidelity’s View. Find simple ways to save a little extra in Top 5 Tips. And read Five Minutes with Fidelity’s Ed Monk, who considers what living longer means for how we approach retirement.

Let myfuture be your regular reminder to think about your finances each time we launch a new issue. You can also download past issues on the app – search for myfuture online on the app store of your tablet or smart phone.

We hope you’re inspired this time to focus on your financial wellbeing in 2017.

Get in touch with us if you need any help.

Your contactsEverything you need is online:

PlanViewer is the simplest way to take control of your retirement planning and manage your retirement savings account. If you don’t have your login details you can request them on the site: planviewer.com

There is general retirement planning information on our main website: fidelity.co.uk/pensions

If you need to contact us:

Email [email protected]

Call +44 1737 838 585 (open Monday to Friday from 8am to 6pm, UK time)

To give us feedback or share your thoughts on the magazine:

Email [email protected]

Get involved


MONEY MULTIMEDIATaking care of your financial wellbeing

myPLAN

Looking for ways to save?

SEE HOW THINGS ADD UP If you spent $5 a day on lunch, in a year that would add up to around $1,000. That’s a lot.

And what about other incidental spending? The chocolate you buy each time you fill up. The magazine you buy when waiting for a plane. And of course, the usual suspect – your daily coffee.

Have a think about the things you buy without really considering what you’re spending, what they add up to, and the other uses that money could go to.

Want to draft a useful budget?

WORK OUT WHAT YOU’VE GOT Your financial wellbeing depends on knowing how much comes in and goes out every month. It’s the only way to manage your spending and find ways to cut back.

To help you get serious about budgeting and make the process easier, take advantage of the many apps available. Examples include You Need a Budget, the Mint Budgeting App, PocketGuard and Mvelopes.

Need help planning for retirement?

ACCEPT THAT PLANNING PAYS 31% of retirees* wish they had started saving for retirement at an earlier age.

Fidelity’s myPlan tool figures out how much you’re on track to have saved when you retire. It also shows how changing different decisions – what you put in or when you start to take it out – can boost your savings. To use the tool, log into your account on PlanViewer at planviewer.com, or visit fidelity.co.uk/pensions (see the Planning tools tab).

Source:

* HSBC, The Future of Retirement, 2016


Don’t miss a trick with debtMost of us need to use debt at some point. We may wish we didn’t, but

we do. What’s important is to make sure debt works for you, and not the other way around. Keep debt in check and make sure you pay it off as soon as

you can, and you’ll save a lot of money.

Debt trick 2:Don’t forget about your mortgage

Just because your mortgage company deducts an amount from your bank account each month, doesn’t mean that’s all you need to pay. If you have money to spare, paying extra into your mortgage will save you money in the long run.

Julia has a mortgage balance of $285,000:

She receives an inheritance and decides to pay $9,000 of it into her mortgage.

She’ll save $5,665 in interest, and pay off her mortgage a year early.2

Debt trick 1: Debt costs you more than saving makes you

The interest you pay on debt is much higher than the interest you make on savings. So, use savings to pay off debt.

Samir has a loan of $1,500:

He’s paying 19% interest a year over two years. He’ll end up paying an extra $289 to settle his debt.1

He also has $1,500 in a savings account. The bank is paying him 1% interest, or $30 over two years.

If he used his savings to pay off his debt now, he’d be better off by $259.

Mortgage overpayment tips

• Check if your mortgage company charges for overpayments or only lets you pay up to a certain amount each year.

• Make sure an overpayment reduces the debt (to shorten the term of your mortgage), rather than the monthly payments.

Sources: 1. Moneysupermarket.com loan calculator. 2. MoneySavingExpert overpayment calculator. Currency conversions applied.


HERE’S TO HEALTHY FINANCESHERE’S TO HEALTHY FINANCESTime to focus on your financial wellbeing

You’ve guessed it. We think healthy living applies to your money too. We call it financial wellbeing and it’s simple.

Financial wellbeing means getting your finances in the shape you’d like them to be in. It’s knowing how much money you have. It’s managing what you spend. It’s keeping debt under your

control. And it’s having a plan for certain events. Wouldn’t that be something to celebrate?

YOUR SPENDING“ Get your finances under control.”Monitor what you spend and you’ll waste less money on things you don’t need or never use.

Financial wellbeing for your spending means…

• Budget.• Manage debt.

YOUR SAVINGS“ Make sure your money works for you.”Build up savings that you can use for different needs.

Financial wellbeing for your savings means…

• Be prepared for a rainy day.• Invest your money to

help it grow.

YOUR PLANNING“Have a plan.”Prepare for life events – those you can predict and those you can’t.

Financial wellbeing for your planning means…

• Take care of your retirement.• Protect your money and

your loved ones.

The three components of financial wellbeing


“ Get your finances under control.”

Lesson 1: Make sure what goes out is less than what comes in

This is simple to do. You need a budget that sets out in detail everything you earn and spend. What you earn should be easy, as are many of our expenses – mortgage or rent, utility bills, travel to work, mobile phone, servicing your car. But we often forget to include the one-offs – haircuts, birthday gifts, TV licences, new tyres. And what about the little things like the odd chocolate bar, the daily coffee, a quick drink after work? It all adds up.

Take action

You can gather all the information you need from your bank statements. About three months of statements should give you enough information.

The good news is there apps to help. Read Money Multimedia for some ideas.

Next step

If you’re spending less than you’re earning…

Well done. It means you have money to save. Take a look at the Your savings section and how to put the money you save to good use.

If you’re spending more than you’re earning…

That’s a problem. If the difference isn’t large, read Top 5 Tips for ways you could cut your spending. If it is, and you’re already dipping into savings to cover your expenses, or worse using overdraft or credit card borrowing, move on to lesson 2 for help managing debt.

Lesson 2: Manage debt

Debt is inevitable for many of us. Buying a house would be impossible without a mortgage. But the key is never to borrow more than you can afford.

Credit cards are convenient but they’re a potential debt trap that is too easy to fall into. We use them to borrow money rather than pay for things that we can afford to buy. If you’re not paying off the full balance every month, you shouldn’t be using a credit card. If you’ve taken advantage of a 0% interest rate or other introductory special deal, make sure you pay off your balance when it expires.

Take action

If debt starts mounting, get help immediately. It won’t disappear and will get much worse if ignored. Debt counselling services may be able to help you sort out your finances, prioritise your debts and negotiate with your creditors.

Budgeting tips• Take the time to get it right.• Be as detailed as you can.• Be realistic and honest to yourself about

your spending.

But...• Don’t be too hard on yourself. Give yourself

a budget to spend on things you enjoy.

Managing debt tips• Spend only what you can afford.

• Keep track of your debts. Before spending use online tools to see what borrowing will cost you.

• If you’re losing control of your debts, get help quickly.

Your spending

Your financial wellbeing starts with knowing how much money you have, and being careful how you spend it.


“ Make sure your money works for you.”Your financial wellbeing is strengthened by putting aside any extra money to cover unexpected costs and, if possible, investing to try and make more money.

Lesson 1: Save for the unexpected

Saving protects your financial wellbeing. Successful saving means building different cash pots of different sizes to do different things.

Unexpected spending fund

• One month’s salary for unexpected one-off expenses e.g. car repairs.

• Useful to have it in a savings account linked to your current account so you can get to it easily.

Rainy day fund

• Three to six months’ salary for larger unexpected expenses, or more serious events that could last weeks or months e.g. losing your job, or costs for retraining or studying.

• Have it in a high-interest savings account – use comparison sites to find the best deals.

Lesson 2: Invest for the future

Saving and investing sound similar but they’re different. Saving is about the short term – unexpected expenses, paying for a holiday, having money to live off if you’re unemployed for a time. Investing is about the long term. It’s the reason you should only invest money you won’t need at short notice.

Investing offers the prospect of better growth than saving, but it involves taking a bit more risk with your money. You need to be able to ride out the inevitable ups and downs of financial markets. If you invest for the long term, you have a greater chance that these ups and downs will even out – so the longer you invest, the better chance you have of better returns. The better returns that an investor receives are their compensation for the risk that they might lose some of their capital.

Investing made simpler

People worry about investing thinking they’ll need to pick shares and follow the stock market closely. You can do both of those if you like. But investing is made easy by funds, which invest your money in different types of assets (shares, bonds, property, for example), in different industries and countries. You pick funds. The choosing and monitoring of companies and countries is done for you. Many investment companies have investing platforms that offer different funds to choose from, and help making your choice.

Take action

It’s a good idea to do some research before you start investing. Ask friends and family if they can recommend an investment company they invest with, and of course, the internet is an invaluable source of information.

Your savings

Think twice: debt and savingSaving money is our goal but not at the expense of paying off debt. It often makes sense to pay off debt before you start saving, or use savings to clear debt.

Why? The interest rate you pay on debt is often much higher than the interest rate you get on savings. So, debt costs you more than saving makes you.

You can apply the same principle to your mortgage. If you have cash to spare, overpaying can save you money in the long run. Mortgage companies often charge for overpayments or only let you pay up to a certain amount each year, so you’d need to consider that.

Read Number Power to see how paying off debt can save you money.

Don’t forget: retirement investors don’t have to choose

Investing for retirement is made simpler by lifestyle options. Lifestyle is a ready-made investment choice where all the decisions – the funds to invest in and when to switch into and out of funds – are made for you. In many plans, you’re invested in the lifestyle option automatically when you join.


“ Have a plan.”

Lesson 1: Plan for retirement

You’re already saving for retirement with your employer’s and the government’s help. But resist the temptation to sit back and hope for the best. It’s time to take a more active part in it.

Take action

Log into your retirement savings account on PlanViewer at planviewer.com to answer these questions:

• How much do I have now? It’s right on the homepage.

• How much will I have when I retire?

• Will that be enough?

Lesson 2: Protect your money and your loved ones

As you take more control of your finances, it’s time to start thinking about protecting what you’re building up – for you and your family.

Take action

• Think about insurance Most of us don’t think twice about home or car insurance. But what about protecting things even more important – your life, health and income? There are many options when it comes to life insurance, critical illness cover and income protection. You’d need to think about what your family’s needs would be, and if you have other savings that could be used as well.

• Make a will If you don’t have a will, this can complicate matters for your loved ones. And loved ones who you’d like to take care of could be excluded.

Don’t forget: tell us your wishes

You must fill in a beneficiary form to tell us who you’d like your savings to go to if you died. If you don’t, your company would have to decide based on what they think you’d want.

You can fill in the form or make changes to it on PlanViewer (planviewer.com in the My plan tab).

The myPlan tool on PlanViewer can help you answer these questions. Find the tool under the My toolkit tab.

Your planning

Don’t forget: retirement savings accounts with old employers

Look those up too. If you’ve lost the details, contact your old companies, or ask old colleagues if they know who you can call to track them down.

Protecting your money tips• Would a financial adviser be helpful?

Ask friends and family to recommend one.

• A financial adviser may be able to help you with a will. Low-cost will-writing services may work if your affairs are straightforward, but more complex situations may be better handled by a lawyer.

Your financial wellbeing depends on planning for life events – those you can predict like retiring or having a baby, and those you can’t – to make sure you and your family are prepared for them.


Fidelity’s Ed Monk on scoring a goal in extra time

Extra time is a nerve-racking experience for many a football fan. When it comes to how long you’ll be retired, ‘extra time’ is the norm these days, as we’re living longer. Fidelity’s Ed Monk considers what living longer means for how we approach retiring, and what it takes to score a goal in our extra time.

FIVE MINUTES WITH…

Ed Monk: “Retirement used to mean golf and cruises. Because we’re all living longer, what it means to be retired has changed dramatically. As has how we’ll pay for it.”

Dr George Leeson, Co-Director, Oxford Institute of Population Ageing: “It’s ridiculous to expect to retire at 65 in the future, when by the end of this century at 65 we can expect to live for another 35 or 40 years, or more. We’ll

see the workplace change dramatically. The way our careers develop will be different too. It’s already started. We’re seeing people retire and start a new career, or go back to work full or part-time.”

Ed Monk: “So part of the solution is working longer, but is that enough?”

Dr George Leeson: “In the long term, state-financed retirement plans will keep you out of poverty at best. Anything beyond that will have to be the responsibility of the individual. Of course, many countries don’t offer state benefits, so individuals have to make sure they’re providing for themselves.

PEOPLE LIKE USGeoff: “My wife and I have jobs that we can start to wind down, and work on a part-time basis in a consultancy role. That’s our aim. We’ll both be active in the workplace for some time.”

Richard Parkin, Head of Pensions Policy, Fidelity: “When we think about retirement, we tend to think about retirement savings – perhaps from the government, but most often from our employers.

These days we need to include other savings, and investments, and some people treat their house as part of their retirement plans.”

Ed Monk: “How much should we be saving?”

Richard Parkin: “How much you need depends on when you retire, the lifestyle you want, and other sources of income you have. As a rule of thumb, you should have a savings pot of 20 or 25 times the income you need to give you that income through your retirement.”

Ed Monk: “Saving for retirement takes commitment. That’s why it’s essential to take advantage of the help on offer.”

Richard Parkin: “If you’re in a company retirement savings plan, your employer will often match any additional contributions you make. It’s worth taking advantage of that. Another tip I often give is that when you get a pay rise, put some of that into your retirement savings plan if that’s allowed. It’s often easier to give up money you haven’t got used to having.”

Ed Monk: “There’s no doubt we’re all living longer. The good news is that a more active and healthy retirement awaits us. But coping with that means saving more, maximising your options and planning your retirement.”

PEOPLE LIKE USDavid: “We have a spread of assets that we’ll get an income from. We have retirement plans set up, and we also get an income from some houses we own.”


TOP FIVE TIPS

WANT TO SAVE SOME MONEY?Here are five ways to start.

Put your money where your mouth is

Make saving a habit by setting up a direct debit that goes straight off your main bank account into a savings account on the day your salary goes in. That way you don’t have to think about it, and you may not miss it.

What it could mean for youMake your own lunch and save the $20 you spend at work every week, and by the end of the year you could save close to $1,000 before interest.

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What it could mean for youSet aside $50 a month, and at the end of the year you’ll have $600 to pay for something useful or fun. And that’s before any interest you could earn.

Get your money’s worthThere’s no excuse to automatically

renew your insurance policies or your cell phone and electricity contracts without shopping around first. With so many websites to help, it’s easy to do.

Remember that patience is a virtue

Impulse buying can be one of the biggest hurdles to reaching your savings goals. Plan your purchases. Wait until the sales. Consider buying second-hand. Do some research to see if you can find it cheaper somewhere else.

Be the early bird to catch the worm

Plan for expensive events. Spread the cost of saving for Christmas, a holiday or a birthday party through the year. You’ll avoid a panic close to the time, and the temptation to use your credit card.

Have a game planFood shopping forms a large

part of our monthly spending. Before heading out, make a list of everything you need and stick to it. Beware of special offers. Some can save you money, but many (3 for 2’s especially) encourage unnecessary spending. Be realistic about whether you’ll be able to use the extra items.

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Late to retirement planning? Penny Lummes breaks down the steps to get your plans moving.

PennyAsk

Penny Lummes manages Fidelity’s Service Centre, the team that focuses on supporting you.

Leon Thompson recently emailed us:

“I’m 35 and I’ve just joined a retirement savings plan for the first time. What should I do to make sure I’ll have enough to retire on?”


2. WHERE DO YOU WANT TO BE?

You should have an idea of the lifestyle you’d like when you retire. This is a harder question to answer, as who knows what the future looks like. The amount you’ll need to live on will depend on your circumstances but typically people find it’s about two thirds of their current income, as your cost of living will typically go down when you retire.

3. WHAT STEPS DO YOU NEED TO TAKE TO GET THERE?

This is probably the most important step. You want to know if your savings are going to grow enough over the years to pay for your retirement.

myPlan is a fantastic tool to answer this question. It shows what your savings could be worth when you retire, and the income they would convert to in a year. But that’s not all. You can adjust important inputs, like how much you pay in or the age you retire, and the tool shows how this changes your savings.

It’s important to be realistic about what you need to do to make sure your savings will meet your needs. For example, use the results of myPlan to think about how much you contribute, and how that will need to change over the next 30 or so years until you retire.

I’d recommend coming back to myPlan every so often to make sure you’re on track. It’s quick and simple, and so helpful.

The tool is also in the My toolkit section of PlanViewer (planviewer.com).

1. WHERE ARE YOU?

You need an idea of what your savings look like. Right now, and over time.

Have you heard about PlanViewer? It’s your retirement savings account online, and the best place to keep up-to-date. Visit your account at planviewer.com to see how much you and your company contribute, where your account is invested and to see what your savings are worth.

Take a tour around the site to read about your plan and all the investment options you have, use planning tools and change your details.

You should have received your login details when you joined your plan. You can request them on the site if you need to.

You’ve started saving for retirement and that is such good news. Your aim now is to take advantage of what your employer’s plan offers you.

You don’t need to swot up on retirement. If you prefer to keep it simple, just focus on the answers to these three questions:

This was Penny’s reply to Leon’s question:

I have one last suggestion for you, Leon: look out for future editions of myfuture. You’ll find a ton of great articles to help you plan.

If you have a question, email Penny at [email protected]


IT’S EASY TO BE LIKE BILL! YOU CAN VISIT FIDELITY’S ONLINE

INVESTMENT GUIDE.

BILL KNOWS THAT TO MAKE SURE HE GETS HIS RETIREMENT PLANS RIGHT, HE SHOULD FIND OUT MORE

ABOUT INVESTING

FIDELITY’S INVESTMENT

GUIDE

BILL DOES SOME RESEARCH ONLINE BILL IS SMART

RETIREMENT

BILL IS SAVING FOR RETIREMENT

BILL DOESN’T KNOW A LOT ABOUT INVESTING MONEY

BE SMART ABOUT INVESTING YOUR SAVINGS

FIDELITY’S INVESTMENT GUIDE ON

It’s the simplest way to find out a bit more about investing your savings. It helps you:

What are equities and bonds? What is investment risk and how does it affect investments?

What’s the difference between lifestyle (the investment decisions are made for you) and self-select (you choose funds yourself)? Which strategies do investors who choose their own funds follow?

How can PlanViewer help you? How can Fidelity help? Which tools can you use?

UNDERSTAND THE BASICS

CHOOSE AN INVESTMENT APPROACH

KEEP AN EYE ON YOUR SAVINGS

BE LIKE BILL & HAVE A LOOK AT OUR INVESTMENT GUIDE AT FIDELITY.CO.UK/INVESTMENTGUIDE

Our guide takes you through the stages of making investment choices – from understanding how investing for retirement works to choosing between different funds.


Lessons your granny could teach you about money

Fidelity’s View:

Granny knows best, or so they say. These good old-fashioned lessons about money are great advice.

A fool and his money are soon parted.”If you’re not careful with your money, you won’t have it for long.

Granny’s advice in practice:• Be a shrewd spender. You work hard for your

money, so look after it. Do your homework and shop around. And if a deal sounds too good to be true, it probably is.

What you can do:• For money-saving ideas, read Top 5 Tips.

Money doesn’t grow on trees.”Money isn’t an infinite resource. Treat it well.

Granny’s advice in practice:• Being short of cash is no fun, so make sure you

have a rainy day fund that you top up regularly.

• Retirement is often one of the biggest areas of regret. Over one in five of over 65s wishes they’d saved more.

What you can do:• Think about how much you save for retirement.

Let’s say you earn $40,000 a year and decide to increase your contribution by 1% from $100 (3% of your monthly salary) to $133 (4% of your salary). In 30 years, your retirement savings account would be worth $27,4001 more.

• To take care of your overall financial wellbeing including tips on budgeting, saving and retirement planning, read Here’s to Healthy Finances.

Neither a borrower nor a lender be.”Don’t live on borrowed money.

Granny’s advice in practice:• Never rely on credit to finance your lifestyle

– if you can’t afford something don’t buy it.

What you can do:• Save for unexpected expenses like car

repairs, and for longer-term goals, like home improvements or education.

• Read Here’s to Healthy Finances to find out more about saving for unexpected events.

• For ways to make sure debt works for you, read Number Power.

Look after the pennies and the pounds will look after themselves.”If you concentrate on saving small amounts, you’ll soon build up a large amount.

Granny’s advice in practice:• If you think you don’t have any cash left over

to set up that rainy day fund, think again.

What you can do:• Set up a standing order that goes out of your

account on payday. That $10 or $20 a month, which you may not even notice, will soon grow into a pot of money that you can invest. Then by cutting out a few non-essentials, you could push that to $50 a month. We’re not talking pennies, but you’ve got to start somewhere.

• Read Money Multimedia for ideas on small savings you could make.

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Source: 1. Fidelity


THE

The most dangerous words in investment are ‘this time it’s different’. It rarely is. History may not repeat itself but it does rhyme. And markets revert to the mean.

That said, I believe 2017 really will serve up a change of direction after the long slog out of the financial crisis of 2008. The dramatic reversals of expectations last year – Brexit and the US Presidential election, in particular – make this feel like a watershed for investors.

Investors have moved swiftly to place their bets on a very different investment backdrop during the next four years. A number of themes are emerging.

The first is that the lower-for-longer period of secular stagnation that has characterised recent years is drawing to a close. In its place will come a greater focus on growth, with fiscal policy stepping up to the plate to support monetary accommodation, which has done all the heavy lifting recently.

More spending, tax cuts and deregulation will provide an equity-friendly backdrop but could flash red lights for bond investors because they will bring with them higher debts, a wider budget deficit and inflation.

The deflationary ice-age since 2009 has been good for fixed income. The new world will be good for shares. It may be overstating it to≈say the 30-year bond bull market is over – because plenty of uncertainty remains and investors are still searching for reliable yield – but I expect equities to outperform bonds usefully in 2017.

The other themes are related to this growth narrative. First, I expect to see a more rapid normalisation of interest rates in the US than was expected throughout last year. More fiscal stimulus takes the pressure off the Fed to boost the economy and December’s rate hike will be the first of several this year.

With other central banks adopting a much more cautious stance, I expect the US currency to strengthen further in 2017. That is historically bad news for emerging markets, especially those with dollar-denominated debts. Any slow-down in global trade, if President Trump delivers on his protectionist campaign rhetoric, will also favour a more closed economy like the US.

Tom Stevenson, Investment Director with Fidelity Personal Investing, gives his economic and market outlook for the year ahead.

What’s in store for markets in 2017?


Another theme that I expect to continue through 2017 had actually started before Brexit and the Trump growth story emerged as key market drivers. However, more populist policies will accelerate the shift from defensive sectors like consumer staples and utilities towards more economically-sensitive, cyclical sectors like retail and financials.

Banks, in particular, should be beneficiaries of faster growth, deregulation and steeper yield curves. When the yields on long-dated bonds rise faster than those

on short duration paper, banks are able to capture the margin in the middle more effectively.

Equities will not be the only story in 2017. The search for yield will continue in 2017 as interest rates remain low by historical standards. That argues for commercial property, which is a great source of income and provides diversification to a balanced portfolio. Rents are growing as occupier demand increases after years of too little development. In a low-rate environment, total returns in the mid-single digits will look attractive.

As for commodities, expect a mixed bag. A stronger dollar would ordinarily be a headwind for the asset class. But the Saudis and others in OPEC have clearly tired of trying to put Shale oil out of business. Recent co-ordinated output cuts mean oil looks better supported than at any time in the past two years.

So there’s plenty to be optimistic about in 2017. My biggest worry is that the growth story is such a consensus trade. The time to be concerned is when no-one else seems to be.

Visit us:planviewer.com (you’ll need login details)

Call us:+44 1737 838 585 (open Monday to Friday from 8am to 6pm, UK time)

Email us:[email protected]

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