Worrying about our families’ financial security while bombs fall on children in Ukraine may seem a little hard-hearted.
Yet, despite the horror unfolding before us, we must still plan for our futures — especially when the current crisis has caused such dramatic volatility in the world stock markets.
We already face surging prices, crippling energy bills and tax rises, so it’s understandable that people are concerned. But there is no need to panic — now is the time to keep a cool head.
Keep cool: Despite the horror unfolding before us, we must still plan for our futures – especially when the current crisis has caused such dramatic volatility in the world stock markets
Chopping and changing your investment portfolio in response to breaking news is a recipe for disaster. And as history has shown us time and again, financial markets do recover in the long term.
Just think back to the early days of the pandemic, when share prices tumbled around the globe.
Had you sold on a whim then, you would have only locked in losses and missed out on bumper returns as markets rallied.
Ordinary investors are not day traders. Our goal is to think in terms of years — and that usually means being cautious, patient and, well, boring.
So don’t try to be too clever. It’s worth checking that you are not heavily invested in one country or industry. But avoid making any rash decisions.
And if you have done well in recent years, consider donating to our appeal to help the hundreds of thousands of innocent Ukrainians fleeing abhorrent Russian aggression.
Generous readers have already sent in an incredible £1.25 million.
We can’t do much, but we must do what we can.
Beat the bills
We all knew energy bill hikes were looming. But the hard reality is now hitting home as a flood of bills spelling out higher tariff charges land in customers’ laps. So what can you do?
With most fixed deals still costing around £3,500 a year, staying put on your supplier’s standard tariff is probably your best option.
But there was a glimmer of hope for E.on customers, who were offered one and two-year deals costing around the same as the upcoming price cap.
These won’t save households money, but they could protect them from further bill hikes in the future — and there are no exit fees, so if costs come down you aren’t locked in.
Keep your eyes peeled for similar deals and check in regularly with your own provider. And remember to take a meter reading before the price cap increases on April 1.
This will ensure you do not pay the higher rate for energy used before then.
Funeral plans
Our inbox is overflowing with emails from worried readers who have paid thousands of pounds for funeral plans from firms which could soon go out of business.
From July 29, all providers must be regulated by the City watchdog. Those that fail to apply for authorisation will be forced to cease trading.
Understandably, customers are desperate to know what their providers plan to do and, crucially, if their cash is safe. Yet many firms are not even bothering to pick up the phone or respond to emails.
We have tried to answer as many of your questions as possible here, and will keep you updated as and when any more information becomes available. But, for now, sit tight and wait.
Crafty crooks!
While queuing to see Andrew Lloyd Webber’s Cinderella on Saturday night, my auntie received a text message to say her Covid pass was ready to download.
With some theatres still asking for proof of vaccination or a negative test, she assumed she had received this because she had just uploaded her result. So she clicked on the link.
It was only when she said out loud that the website was asking for card payment details that I realised it was a scam and warned her to stop.
When we looked closer, the message had come from a mobile number and was obviously a con.
But it just goes to show how easy it is to get caught out when you’re distracted.
So with crooks now turning their attention to the cost-of-living crisis, be on your guard.
