Gill Fielding’s 2020 Wealth Guide

What a great time to start your wealth creation journey in 2020!

Well I don’t know about you but I feel exhausted after finally staggering through 2019!! It felt like a torrid year where we bounced from one uncertainty to another and at last we have some clear direction. The landslide majority that took Boris Johnson back to number 10 was a clear mandate from the public to Get Brexit Done and get back onto whats important for this country and the people in it. 

What the last 3 years has proved is that the British public like to be able to plan their lives with some certainty. Because none of us knew for certain what was going to happen, we all felt unwilling to take any action ‘just in case’. This caused a slow down in the economy as people were reluctant to spend and a slowdown in the property market. 

But three years of stagnation is enough! And clearly we all now want to get back on with our lives and start moving forward again. There has been an immediate pick up, and there have been rises in both the stock market and in sterling whilst inflation has remained low 

 

 

So how are we set up for 2020? 

The actual evidence is overwhelming for a positive financial future in 2020. The stock market is displaying an impressive ‘Boris Bounce’ and rose by approximately £50 billion in the 2 days after the election result. Now this showconclusively the certainty of what we now have creates confidence in the market, and in business and the economy so people start to invest again and prices go up. Yippee! We’d all rather have a booming economy than a stagnant one. 

It is difficult to quantify exactly how much is going to be spent but its proposed to be a multibillion pound investment and all the current proposals will help boost the economy: 

  1. New and improved roads increases mobility for employment and efficiency
  2. Better broadband across the country helps businesses and individuals be active and competitive in working environments
  3. Investment in local transport enables people to get about and get to work efficiently and also creates new jobs in the transport industry 
  4. The proposed investments into the NHS will have a massive impact on local and national economies. Building works – of up to 40 hospitals – will create jobs for builders and all associated trades, plus it will generate extra jobs for NHS personnel, and that will include the 50,000 more nurses that the government suggests. 

All this investment on communications, infrastructure, and employment will make a massive difference to the austere times of the last few years and will drive the economy overall but will also make a huge difference to the individuals and families across the UK. 

 

 

And the property market?

What it will also mean is a rise in the property market. People who have been reluctant to move in the past few years can now dust off the house and get it sold. The property market has been more or less stagnant for most of the last three years and that’s about to change. People are now more certain; their jobs are more stable and prices are low – that’s an ideal time and place to buy a house! 

Its also likely with the massive infrastructure investment proposed for the northern part of the country that the north-south divide is likely to close in terms of property prices, and I expect the property prices in the north to show the biggest rises in the near future. The only exception to that is the centre part of London where the overseas investors are now also jumping back into the market which will increase prices there.  

Overall property prices will start to rise in the early spring 2020, so NOW is the time to start investing so get in now whilst prices are still low! 

Interest rates are at their lowest ever. In respect of personal mortgages we can now fix a mortgage for 10 years on a rate of about 2.2% – 2.5%, and that’s extraordinary. If you don’t want to fix for so long then there are 2 year fixed deals around today at between 1.1% – 1.3%. These rates are ridiculously low and will enable most families to get onto the property ladder if they want. 

 

 

Employment and the personal economy 

Employment is at a 50 year high and it’s likely to go even higher. More jobs will be available directly, say with the additional nurses, but indirectly there will be a massive knock on effect from the government’s infrastructure spending; we will need more builders for the roads and hospitals, and more bus and train drivers for instance. Then the knock on effect continues as those people who now have jobs start to spend their money in shops and their local economy….and then the local shop keepers have more money and they spend it in other shops and so the ripple continues. This is an amazing economic spiral and it’s about to turn upwards. 

 

 

Summary  

2020 is perfectly set for a great financial year: all the indicators show that the economy is already starting to grow, that individuals have the possibility of earning more and that local economies and the property prices are about to rise. Interest rates, and unemployment levels are at an all time low, the government’s infrastructure investment will boost jobs, property prices and the national economy.  

What a great time to start an investing and a wealth creation journey.  After three years of political nonsense and stagnation, we’re about to fly and grow. What a fantastic proposition that is. It means that individuals and families can get themselves going and support themselves, find a decent home and a decent job, and start to create some financial stability and certainty that they haven’t had before.  

What the recent few years has taught us is that we need to be more personally resilient such that we’re not so affected by the political nonsense when it comes. Personal financial responsibility is fundamental and key to a more certain and happy life and I’m certain that 2020 is the year for people to start and let’s all start 2020 with a 2020 vision for our own bright financial future. 

 

With health, wealth and happiness,

Gill Fielding

 

 

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