Over the past few years, the investment landscape in the UK has changed dramatically.
Recent research shows that around 38% of UK adults now invest – just over one in three.
This is a figure that has risen steadily since the beginning of the decade when around one in four UK adults invested.
Some of these new investors are using technology in the form of investment platforms to do it themselves.
While this approach can be appealing, it does have its limitations, as we explore in this article.
Starting on your own is simple, accessible, and gives you control.
DIY investing appeals because of flexibility, lower fees and the ability to learn as you go.
For many people, that’s exactly what they need to build confidence and it’s a great starting point.
But as your financial life becomes more complicated, the question often shifts from “How do I start?” to “What’s the smartest way to move forward?”
That’s where informed planning and professional advice begins to make a meaningful difference.
DIY investing can be a great fit when:
Many people value this independence at the start of their investing journey. It builds good habits and gives you a better understanding of how your money works.
For some, that’s enough. For others, life becomes more complicated and they don’t want to get things wrong.
There’s usually a clear point where the conversation shifts from picking investments to financial planning.
In my experience, people tend to look for guidance when one or more of the following starts to apply:
Multiple pensions, ISAs, workplace schemes, cash savings and investment accounts can make it increasingly difficult to stay organised.
Choosing the right tax wrapper, managing allowances and understanding how to make money work harder after tax can have a huge impact over decades.
One of the hardest parts of investing is staying calm when markets fall or headlines turn, as has been the case in recent weeks with the unrest in the Middle East.
A lot of long-term damage happens when decisions are driven by emotion, not strategy.
Investing isn’t just about buying funds, it’s about aligning decisions with life goals, whether that’s retirement, children’s education, or future financial independence.
It’s often at this point that people realise the difference between having investments and having a plan.
The value of advice is well documented.
Analysis from Vanguard shows that professional advice delivered consistently and in a structured way can add around 3% per year in long term value.
This isn’t through beating the market, but through:
It’s the combination of these elements that makes the difference.
Good advice isn’t about predictions or timing. It’s about giving you confidence, structure and clarity so you can focus on the parts of life that matter more.
Taking your first steps through a DIY platform is a great place to begin.
It builds confidence and gets your money working.
But as your financial situation evolves, the decisions naturally become more layered and more impactful.
You don’t need advice to start investing.
But many people find it helpful when the decisions get bigger.
For more information on how investments can fit into your financial plan, get in touch with one of our advisers.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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Yes, DIY investing can be a great way to start, especially if your finances are simple and you want to learn. It offers flexibility, control, and lower costs.
You should consider a financial adviser when your finances become more complex, tax planning becomes important, or you want a structured long-term plan.
Investing focuses on selecting assets, while financial planning aligns your investments with long-term goals like retirement, education, and wealth preservation.
Yes, research suggests financial advice can add long-term value through tax efficiency, behavioural coaching, and cost management rather than market outperformance.
Yes, many investors use a hybrid approach—managing some investments themselves while seeking advice for complex decisions or long-term planning.
Common risks include emotional decision-making, poor diversification, tax inefficiency, and lack of a clear long-term strategy.
Over recent months, we have seen commodities investing move firmly into the spotlight.
Gold has been front and centre of the conversation, but it’s not the only area attracting attention.
We have also seen growing interest in energy, industrial metals and agricultural markets, as these assets tend to re-enter the discussion when investors are thinking about inflation resilience, geopolitical uncertainty, or simply improving diversification in a balanced portfolio.
Commodities can play a useful role in portfolios, but they are also easy to misunderstand.
Prices can be volatile, different commodities behave in very different ways, and the route you choose – owning the commodity itself versus investing in the companies that produce it – can materially change the risk and return profile.
Here we set out the key points to help investors and advisers frame the discussion sensibly.
Gold has a long history as a defensive asset.
Unlike shares or bonds, it isn’t linked to the fortunes of a single company or government, and it doesn’t rely on an issuer’s promise to pay.
The “no-one else’s liability” feature is one reason investors often gravitate towards gold when confidence is shaken.
Gold is also scarce, durable and globally recognised, which helps explain why it has been treated as a store of value over time.
In periods where inflation worries rise, geopolitical risk intensifies, or markets become unsettled, gold can attract demand as a form of insurance within a broader portfolio.
Interest rates are another important influence.
Gold doesn’t produce an income, so it can look more attractive when the return available on cash and bonds (after inflation) feels less compelling.
When that “opportunity cost” falls, investors can be more willing to hold an asset whose value is driven primarily by supply and demand, rather than by income.
The key caveat is that “safe haven” does not mean “always goes up when markets fall”, and it certainly does not mean “low volatility”.
Gold can experience sharp drawdowns, and there are periods where it falls alongside risk assets – particularly when investors are rushing to sell all assets, the US dollar strengthens, or real (inflation-adjusted) interest rates rise.
Recent price action is a timely reminder of this volatility.
Gold’s strong rise has been accompanied by larger day-to-day moves than many investors associate with a defensive holding.
When investor positioning becomes crowded, or when flows into and out of exchange-traded products accelerate, price action can become more reactive and caught up with broader shifts in sentiment.
The key message really is that gold can be a useful diversifier and a potential stabiliser in certain environments. However, but it should be held with realistic expectations.
It is not a guaranteed hedge, and it can be volatile.
When investors talk about “commodities”, they can be referring to a wide range of assets.
Broadly, the exposure tends to fall into a few categories as follows:
These are closely linked to global growth, manufacturing and infrastructure spending.
They can benefit when global growth is positive, activity is strong and are often associated with long-term themes such as electrification, grid upgrades and more recently the data-centre build-out.
The trade-off is cyclicality: industrial metals can fall sharply when growth slows, or demand expectations weaken.
These are typically among the most economically sensitive commodity exposures.
Energy prices respond quickly to supply disruptions, geopolitics and production decisions – as we have seen in recent weeks with events in the Middle East.
For investors, energy can sometimes offer inflation sensitivity, because energy costs feed directly into wider price pressures.
However, energy markets are among the most volatile, with rapid swings driven by events rather than gradual fundamentals.
Risks can therefore be driven quite dramatically by timing, and reversals can be sudden.
Agriculture is driven by a different set of factors – weather patterns, crop yields, fertiliser costs and trade policy. This can make it appealing from a diversification perspective.
The drawback is unpredictability: weather and seasonality can create sharp price moves, and local disruptions or policy decisions can have outsized effects.
These metals can behave quite differently from gold.
Silver, for example, has both “monetary” characteristics and meaningful industrial demand (solar panels and datacentres as examples). This can make it more sensitive to the economic cycle.
Platinum and palladium have also historically been tied to industrial uses and evolving technology trends.
These markets can be smaller and less liquid than gold, which can mean more volatility.
Commodities are rarely a “core” holding like equities or bonds, but they can play valuable supporting roles when used thoughtfully and sized appropriately.
Commodity returns are often driven by different forces, supply constraints, weather, geopolitics and inventory cycles.
This can help diversify a portfolio that is otherwise dominated by equity and interest-rate risk.
Commodities sit closer to the real economy. In certain inflationary environments, they can help offset the impact of rising input costs and price pressures. This is particularly the case with energy and some industrial commodities.
That said, outcomes vary significantly by period and by commodity.
Gold can provide a form of insurance in certain types of market stress, especially where confidence in currencies or financial stability is questioned.
However, insurance is not free: gold can underperform for long stretches and may disappoint in some equity drawdowns.
Commodities can deliver strong returns when supply is constrained, demand surprises to the upside, or inflation shocks push prices higher.
However, these periods can be episodic rather than steady. It is important not to extrapolate short-term performance into a long-term expectation.
There are two main ways investors can access exposure to commodities with each having its own advantages and disadvantages.
This is typically achieved through exchange-traded products or funds that provide exposure either to the physical commodity (more common for precious metals) or via futures markets (common for energy, industrial metals and broad commodity baskets).
Direct exposure can provide a cleaner link to commodity prices and may be more effective for diversification and inflation sensitivity.
However, futures-based exposure can introduce additional drivers of return, particularly the mechanics of rolling futures contracts.
The alternative route is to invest in the companies that produce the commodity.
This can provide potentially higher returns and operational leverage when commodity prices rise.
However, it also introduces equity market risk and company-specific factors such as costs, debt levels, regulation, politics, management decisions and broader market sentiment.
Commodities can be a helpful portfolio tool, but they require careful sizing and clear expectations.
Volatility can rise quickly, individual commodities can behave very differently, and product structure matters.
For UK investors, currency is another consideration. Many commodities are priced in US dollars, so currency moves can materially influence returns.
Commodities can offer diversification, inflation sensitivity and, in the case of gold, a potential form of portfolio insurance.
But they are not a one-way bet, and recent moves in gold are a reminder that even “defensive” assets can be volatile.
The most important decisions are not just whether to invest in commodities, but which exposures to use, how to access them, and how much is appropriate given an investor’s objectives and risk tolerance.
An expert financial adviser can help you decide whether investing in commodities is right for you, your circumstances and your approach to investment risk.
Get in touch with one of our advisers today to find out more.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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Gold is often considered a safe haven because it is not tied to any single government or company and has historically retained value during market stress. However, it can still be volatile and does not always rise during equity downturns.
Some commodities, particularly energy and industrial metals, can perform well during inflationary periods because rising input costs push prices higher. However, performance varies by commodity and economic cycle.
Direct commodity exposure (often via ETFs or futures) tracks the price of the commodity itself. Mining or energy stocks are equities and carry company-specific risks such as management decisions, debt levels and broader stock market movements.
Commodities can play a supporting role in a diversified portfolio, particularly for inflation sensitivity and diversification. They are typically not core holdings and should be sized appropriately given their volatility.
Because most commodities are priced in US dollars, currency movements can significantly impact returns for UK investors. A strengthening pound can reduce returns, while a weakening pound can enhance them.
The acronym HENRY – High Earner, Not Rich Yet – has gained in popularity in recent years – and for good reason.
The term describes a growing cohort of people who look financially successful from the outside but feel increasingly stretched once the real numbers are laid out.
HENRYs are:
Yet many describe the same frustration: earning more doesn’t feel like getting ahead.
The reason, more often than not, appears when children arrive.
The UK tax system creates a sharp financial turning point around £100,000 of adjusted net income.
This is known in many circles as the £100k tax trap.
Once that threshold is crossed, families can lose access to key childcare support, including 30 hours free childcare and Tax-Free Childcare.
This support can be worth roughly £7,000 to £8,000 per year for a typical nursery-age child, depending on fees and location.
At the same time as losing this support, the tax-free personal allowance begins to taper away, reducing by £1 for every £2 earned above £100,000.
When you combine the loss of childcare support with higher effective tax rates, families can find themselves in a situation where earning more produces very little improvement in real disposable income – the £100k tax trap.
Recent commentary has highlighted how this is influencing real-life decisions.
Some professionals are now openly questioning whether progressing beyond certain income levels actually improves their standard of living.
From my perspective, this is not theoretical. It shows up in meetings I have with clients every week.
You can see how crossing £100,000 can actually leave some families feeling worse off, which feels completely counter-intuitive.
The consequences are real: some delay having children, others decide to stop at one child.
When financial systems create disincentives around family life, behaviour changes.
Is Elon Musk right? He has repeatedly warned about declining birth rates and long-term population trends, and while his views are often debated, the underlying point is hard to ignore: financial pressure increasingly influences family decisions.
The typical story is familiar.
A promotion or bonus pushes income above the threshold.
Nursery fees are already high and suddenly support disappears. Monthly outgoings rise just as income is supposed to bring more comfort.
The emotional response is usually confusion rather than tax planning ambition.
Clients aren’t trying to avoid success. They simply expected that earning more would make life easier.
Instead, they feel stuck.
This is the core HENRY experience: high income, high fixed costs and very little sense of momentum. Caught in the £100k tax trap.
What many families don’t realise is that the threshold is based on adjusted net income, not simply salary.
Pension contributions and other reliefs can materially change that figure.
This is where proper financial planning changes the conversation.
I regularly see situations where restructuring income or increasing pension contributions improves long-term wealth while also preserving access to childcare support.
On paper, it may look like a short-term sacrifice. In reality, it can significantly improve both current cashflow and future financial outcomes – and free you from the £100k tax trap.
When you model these decisions properly, the results are often surprising.
Families can see clearly how a relatively small structural adjustment today can reshape the next 10 or 20 years.
Childcare is simply exposing a broader issue facing high earners.
Income alone does not create financial security. Without structure, even strong salaries can leave households feeling dependent on the next payslip.
The childcare years are temporary, but they are often when you make the biggest financial decisions.
Done well, they become a period of acceleration rather than pressure.
Many high earners assume that financial comfort arrives automatically once income reaches a certain level.
In reality, the system becomes more complex exactly at the point where family life becomes more expensive.
The solution is not to avoid earning more or to step back from progression. It is to understand the rules well enough to work with them, not against them.
Because ultimately, the goal is not simply to earn well. It is to feel in control of what that income actually delivers.
Sitting down with a professional financial adviser and looking carefully at your income and outgoings will help you to create a robust, flexible financial plan – not only for when children are young, but also for your future after they have grown up.
It could free you from the £100k tax trap and help you see financial success for what it is – a boon and not a burden.
Get in touch with one of our advisers today to find out more.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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The £100k tax trap occurs when adjusted net income exceeds £100,000, triggering the loss of personal allowance and childcare benefits, creating a 60% effective marginal tax rate for some earners.
Families can lose access to 30 hours free childcare and Tax-Free Childcare once adjusted net income exceeds £100,000.
Adjusted net income is your total taxable income minus certain reliefs, such as pension contributions and Gift Aid donations.
Yes. Pension contributions can lower adjusted net income, potentially restoring childcare eligibility and reducing effective tax rates.
High fixed costs, tax tapering, childcare fees and reduced allowances can significantly reduce real disposable income despite six-figure salaries.
No. The better approach is structured financial planning to optimise income and long-term wealth rather than limiting career progression.
The last couple of weeks have delivered a steady stream of unsettling headlines from the Middle East.
Oil prices spiked, some equity markets fell, and commentators rushed to predict what happens next.
It’s natural to feel uneasy in moments like this. But for long‑term investors, the best response is usually the most straightforward: keep calm, stay diversified, and stick to the plan you built around your goals.
Recent military escalation in and around Iran has disrupted shipping through the Strait of Hormuz, a narrow channel that normally carries a large share of the world’s oil and gas:
When those flows look threatened, energy prices can jump quickly and knock confidence across wider markets.
We’ve seen exactly that pattern: crude oil briefly pushed into triple‑digit territory before easing back as talk of strategic stockpile releases and naval escorts helped steady nerves.
Equity markets sold off at first, then showed signs of resilience as energy prices backed off their highs.
In short, it has been a fast‑moving situation – but not an unfamiliar one for markets.
Diplomacy continues in the background and policy responses are on the table.
Authorities have discussed reserve releases to cushion supply, and any reopening of shipping lanes would help prices normalise.
The timing is uncertain, it remains a fast-moving situation and headlines may stay volatile for a while yet.
That said, markets often adjust faster than the news flow, especially when investors can see a path to stabilisation.
Oil jumped (black line in the chart below) as shipping slowed, before retracing a good portion of the move when signs of policy support and limited tanker escorts emerged. Large daily swings have been common.
The initial “risk‑off” reaction hit most equity regions. Energy companies outperformed on the way up, then gave back some gains as crude eased.
US equities (orange line in the chart below) have been relatively resilient versus other regions as the US is seen as less exposed to the volatility.
Government bonds (10-year US Treasuries in green line), which often rally when shares fall, were tugged in two directions – by safe‑haven demand on the one hand and by renewed inflation concerns on the other (higher oil can keep inflation sticky). That’s one reason returns have varied by market and maturity.
The US dollar firmed as investors sought safety, which matters for UK investors holding overseas assets (USD/GBP in blue line).
Gold was volatile (yellow line)—useful as a diversifier over time, but not a guarantee of gains on every risk‑off day.
As oil pulled back from its peak, market anxiety measures cooled from their initial spike, reminding us that conditions can change very quickly when policy signals improve.
None of this is to minimise events; it’s to put them in context.
Markets have navigated many geopolitical shocks over the decades, and while the path is rarely smooth, the longer‑term pattern has been one of recovery as fundamentals reassert themselves.
Every year experiences pullbacks. A long-running analysis by J.P. Morgan Asset Management (see chart below) shows that, despite an average intra‑year decline of roughly 15% in global equities (red dots in the chart below), calendar‑year returns (grey bars) have still been positive most of the time.
In other words, setbacks are common, recoveries are too.
Selling after markets fall often locks in losses and risks missing the recovery.
Fund‑flow data show investors tend to withdraw money near market troughs – exactly when patience is most valuable.
More importantly for today’s environment, the chart below shows that a simple 60/40 mix of shares and bonds has beaten cash after past geopolitical and economic shocks more than 70% of the time over the subsequent year – and every time over the subsequent three years in the sample J.P. Morgan studied:
The longer you stay invested, the lower the historical odds of losing money—particularly in a balanced portfolio.
Combining time, compounding and regular reinvestment has been a powerful driver of long‑term outcomes as the final chart below shows; while over short time periods the range of returns can be wide and sometimes negative, the longer the investment time period the more predictably positive returns become.
Whilst the current time is unsettling for investors, it is important to remember that the fundamental principles of investing remain the same.
Your portfolio was built around your personal objectives and time horizon.
Short‑term market moves – especially those driven by geopolitics – don’t usually warrant wholesale changes to a long‑term plan.
A balanced approach helps cushion the journey and has historically rewarded patient investors, including through past crises.
Cash has a role for near‑term needs and as a stabiliser, but moving large amounts out of markets after shocks typically hurts long‑term results – and inflation quietly chips away at purchasing power.
Rather than making big directional calls, periodic rebalancing back to your agreed mix naturally trims assets that have risen and adds to those that have fallen, keeping risk aligned with your goals.
We are monitoring developments daily – including energy market dynamics and any policy responses – and we’ll adjust where needed within the discipline of your strategy.
If your circumstances change, please let us know so we can reflect that in your plan.
Get in touch with an adviser to discuss your current situation, any concerns you have or adjustments you’re thinking about making.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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With Easter just around the corner, I’d like to talk about chocolate.
In fact, one particular type of chocolate: the Freddo bar.
Those of a certain age may remember this piece of confectionery with great fondness – not so much for its taste, which was, well, chocolatey, but more for its value for money.
Freddos were cheap.
So cheap in fact that right up until 2006 you could buy one for as little as 10p.
Sadly those days are long gone.
A Freddo these days will set you back around 35p and, in some cases, as much as £1 a bar.
Even with increases in pocket money, that chocolate hit is no longer as attainable as it once was.
The plight of the once-cheap Freddo illustrates an important point about the value of money: it never stays the same.
Inflation is the silent assassin of your wealth, affecting everything from buying a once in a lifetime holiday to grabbing a sweet snack.
While the rate of inflation fluctuates, it rarely if ever recedes. Just like the oceans continually erode the coastline, inflation does the same to cash in bank accounts.
The effect on your cash over time really adds up – in a bad way. This picture tells the real story:
It’s a sobering illustration of the power of inflation – even more so when you realise that this is inflation at just 2% rather than the 3% it was in January, let alone the 10%+ it hit in January 2023.
If you still think that ‘cash is king’ or that your money is always ‘safe’ in cash, you may want to think again.
The unfortunate fact of the matter is that interest rates on bank or building society deposits rarely keep pace with inflation.
Your money may be ‘safe’ in a savings account (providing you have deposits of £120,000 or less and your account provider is covered by the FSCS deposit guarantee). However, the value that it represents is not.
Building up an ‘emergency’ fund of savings which you can quickly and easily access is a great idea, but putting all your ‘rainy day’ money in such an account risks losing some of the value of what you have put aside, particularly over a longer timescale.
We in the financial services sector rightly have to warn of the risk involved in investing – that returns are not guaranteed, the value of what people invest can go down as well as up and people may not get back the full amount they invest.
However, there is also a type of risk involved in placing all your spare funds in a savings account: you may find your money is not worth as much as you had thought and, with tax rates on interest from non-ISA savings accounts increasing, you may not earn as much in interest as you had anticipated.
You may also miss out on the additional returns which could have come with investing over the long term – while past performance does not mean the same will be repeated in the future, it remains a fact that over a long period of time, returns from equities have typically outperformed cash by several multiples.
Financial decisions should always take into account your individual circumstances, but taking a balanced approach to saving and investing could help to mitigate both types of risk involved.
And you could end up being able to buy a Freddo or two.
It’s easy to find out more about how investing has the potential to improve your financial future, what products are out there and how to match your goals with your appetite for risk.
Get in touch with a Fairstone adviser to discover more.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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The deadline to maximise your investment in tax-free ISAs (Individual Savings Accounts) is rapidly approaching.
The ISA deadline comes at the end of the current 2025/26 tax year, which is April 5, 2026.
This is the last chance to use up your annual allowance before it expires, with the new tax year starting on April 6, 2026.
You can invest up to a maximum of £20,000 per person in any ISA in any one tax year.
This allowance has to be used during the course of that tax year and cannot be “rolled over” into the subsequent tax year.
It is a “use it or lose it” allowance.
At the current moment in time, the £20,000 maximum can be invested across any number of ISA types, including cash ISAs, stocks and shares ISAs or Lifetime ISAs.
You can invest in more than one ISA account during any tax year.
However, your total ISA investments cannot add up to more than £20,000.
No. Putting money into a Junior ISA does not affect your personal adult allowance of £20,000 per tax year.
The Junior ISA has its own separate £9,000 annual limit that any adult can contribute to.
This means that grandparents, family and friends can all contribute to a Junior ISA without it affecting their own personal ISA allowance.
Find out more about Junior ISAs in our guide.
Yes. From April 2027, people aged under 65 will only be allowed to invest a maximum of £12,000 in a cash ISA in any one financial year.
The remaining £8,000 of their annual £20,000 allowance has to be invested in a stocks and shares ISA.
Those aged over 65 can still use all of their £20,000 annual allowance to invest in a cash ISA.
Maximising the amount you can invest tax-free in ISA accounts can help to make your money work harder.
It allows you to retain the proceeds of your investment tax-free.
This is particularly important as the 2025 Budget announced rises in taxation rates on dividend income from 6 April 2026 and on savings and property income from 6 April 2027.
Keeping your investments in a tax-free ISA wrapper shields them from these rises.
Every person’s financial situation is different so there may be a good reason why you might want to wait until April.
However, if you want to maximise your ISA allowance and can do so at a time of your choosing, investing as early as possible will allow you to shelter your money tax-free for longer.
It is also the case that many ISA providers are extremely busy the closer the deadline approaches so investing earlier will enable you to avoid the rush.
Taking independent financial advice can help you decide whether an ISA is right for you and what types of ISA could best suit your circumstances and attitude to risk.
To start your ISA journey, get in touch with an adviser today.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
Pssst! Want some free money?
Hopefully that has got your attention.
This isn’t my money we’re talking about, but funds from a far better capitalised source: the Government.
That may sound surprising, but despite the well-publicised tax rises from the last two Budgets, the Government does give out money as well as taking it away.
I’m not talking about statutory benefits such as the State Pension or child benefit.
What I’m referring to are the incentives which the Government gives for people to save and invest.
All too often, people are either unaware of these incentives or end up missing out because they don’t take action soon enough.
Let’s take Individual Savings Accounts (ISAs) to start with.
As you may be aware, ISAs are accounts where you can enjoy the proceeds free of tax, whether that’s in the form of a cash ISA, stocks & shares ISA or Lifetime ISA (although these are being phased out).
You can save or invest up to £20,000 across all your adult ISAs each tax year and all interest, dividends, or capital gains within an ISA are tax-free.
The ISA deadline for the current tax year is rapidly approaching – it’s April 5th.
If you can afford to and it forms part of your financial plan, you really should take advantage of the opportunity to maximise tax-free ISAs as much as you can.
While the value of investments in stocks and shares ISAs can fall as well as rise, in the long-term – as I referred to last month – investing money has outperformed returns on cash.
Putting some of your investments in an ISA shelters them from tax and, if you do this regularly, the potential to see your money grow is compelling.
“But this isn’t free money,” you might argue, but tax-free makes a material difference to investment returns.
However, when it comes to pensions, there really is free money for our clients.
If you save in a workplace pension, your contributions are made from pre-tax income, thus saving you anything from 20% to 45% according to the size of your wage packet.
Still not free money?
OK, how about the fact that if you have a private pension – such as one which you’ve created from consolidating pensions from previous workplaces – and you put money into that from your post-tax income, the Government will add 20p to 45p in tax relief for every £1 you put in, depending on your tax rate.
While this is subject to various income and contribution limits, it is without doubt free money.
What’s more, the Government will also give free money to your children or grandchildren.
Any parent can set up a child’s pension for their child.
It doesn’t have to start with a huge lump sum or have vast amounts put into it.
Regular contributions – even small ones – can really add up over time and make a nest egg for later life.
What’s more, other family members – such as grandparents, aunts and uncles – and family friends can also contribute.
Currently a maximum of £2,880 can be paid into a child’s pension for any one tax year.
And – here’s where the free money comes in – the Government will pay 20% tax relief on those contributions, making it £3,600 a year before a single penny has been earned from investments.
Start early, contribute regularly and your child could potentially have a £1m pension pot by the time they can access it – at age 58 under current legislation.
Investing in a Junior ISA can also give your children a great start to their adult lives.
Junior ISA contributions don’t count towards your personal ISA allowance. Up to £9,000 a year can be put into a Junior ISA in any one tax year and your child gets to keep all interest, dividends, or capital gains tax-free when they turn 18.
There really is no time like the present to make a start on making a difference to your life or the lives of your children.
It worked for me – my daughters have house deposits as a result of Junior ISAs started when they were babes in arms.
They also have started pensions to capture the free money and harness the power of compound investment returns to unlock the financial independence that a £1m pension pot provides.
It’s also easy to do. Get in touch with a Fairstone adviser to find out how you can make the most of what is on offer and how that could fit into your financial life.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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Financial planning as a couple doesn’t sound like the most romantic thing in the month of Valentine’s Day.
However, taking time to talk about shared financial goals does not just make practical sense – it can actually enhance your relationship.
Here we outline why financial planning could be the key to your shared future happiness as a couple.
“Not enough” would seem to be the answer.
Recent research from Opinium found that one in four people (26%) in long-term relationships (lasting two or more years) manage their lives together but not their finances.
It also found that:
Not only do people not talk about their finances to their partner – sometimes they actively cover them up.
Research from Co-op Legal Services found that one in three married people aged over 65 hide money from their spouse.
One in seven of those who admitted hiding money said they had £50,000 or more stashed away on the quiet.
Aside from the obvious reason that concealing important things from your partner is rarely a good idea, there are several practical areas where not communicating with each other about finance can create problems.
And conversely, talking things over about money matters can really reap dividends.
If you’re setting up home together, not only should you plan how you’re going to pay for where you live, but mortgage lenders will insist that you do.
Aside from the demands of lender application forms, talking about your mortgage with your partner is crucial in a number of ways.
For example, what size deposit can you afford and how should you finance it?
A larger deposit often means you can get a better mortgage deal but it’s important that both parties feel they have equal stakes in the property – even if one party is putting in more money than the other.
It’s also good to talk about how long you want the mortgage to last.
For example, if there is an age difference in the relationship, one party might be close to retirement by the time the house is paid for while the other has several years of working life left.
Such practical considerations naturally lead to more discussions about life goals and what kind of future you’re looking at together.
This can bring you as a couple closer together – or if it doesn’t, at least you know how the other person in the relationship feels.
If you’ve discussed getting a home together and the mortgage you need to pay for it, talking about how you’ll protect each other – and the rest of your family – if the worst should happen is an obvious next step.
Life insurance policies are generally cheaper the earlier in life that you take them out, so ensuring you and your partner are covered in the event of a death is a very good idea.
Talking about how much cover is needed and nominating the person to whom money should be paid is important to make sure your loved ones are covered – and it can bring real peace of mind to your relationship.
Protection isn’t just about what could happen in a worst case scenario.
Talking about how you would cope financially in the event of a serious illness, accident or unemployment will help you decide whether one or both of you should take out cover to protect against such occurrences.
Financial conversations shouldn’t just be about the nasty things in life.
Talking about how you will plan for your children’s future is really important and can give your offspring a great start in life and a comfort for their later years.
For example, you might want to start a Junior ISA for your child so that they have a valuable nest egg available to them once they hit 18.
You could also consider starting a child’s pension which other members of the family could contribute to and which could give them security for their later years.
Both of these products have implications for tax and for personal allowances – another reason to get together and discuss plans before carrying them out.
This is also the case for things like childcare allowances and vouchers, maternity pay and other family-related schemes.
This means it’s crucial that you both know where you stand when it comes to your finances in order to get the best deal for your family.
As the Opinium survey found, talking about retirement and sharing details of pension savings is an area many shy away from.
However, a couple considering retirement are so much better equipped for that phase of life if they put their heads together and plan as one.
Let’s take a very obvious thing: how much money do you need to have an enjoyable retirement?
The Retirement Living Standards have been developed by Pensions UK to help people picture what kind of lifestyle they could have in retirement and the costs involved.
There are a number of assumptions involved in their calculations – including people owning their own home, taxation levels and no social care costs – but the basic figures illustrate why two heads are better than one in retirement.
At each level of income – minimum, moderate and comfortable – the amount needed per person is considerably less for couples than it is for single people:
| Lifestyle level | Single person | Couple |
| Minimum | £13,400 a year | £21,600 a year |
| Moderate | £31,700 a year | £43,900 a year |
| Comfortable | £43,900 a year | £60,600 a year |
In addition to planning how you’ll finance your retirement, it’s also a good idea to talk about what each of you wants from this phase of your life.
For example, you might both want to go on a dream holiday or even buy a holiday home.
One of you might want to continue doing some part-time work while the other is content to put their feet up.
All of these decisions have consequences for your retirement finances and for things like how much of your pension pot you want to take as a tax-free lump sum or whether one or both of you should buy an annuity to give you guaranteed income for the remainder of your life.
Planning together will make such decisions easier to come by and will help you visualise and secure your lives in retirement.
What happens after you’ve gone is something that can be difficult for people to address.
Talking with your partner about the issue can put practical plans in place and provide real peace of mind for both of you.
As with all of these stages in life, bringing in an expert adviser can provide a neutral voice and independent advice on the best way forward.
Getting expert advice on putting a will in place and planning what happens with your estate can:
It’s particularly important for couples to co-ordinate on this process because of factors such as transferrable allowances and inheritance tax nil rate bands.
The worlds of romance and finance may seem to be very far apart.
Yet couples who don’t engage with each other when it comes to money matters can make life difficult for themselves and their loved ones.
Conversely, planning the future together can actually bring you closer together and demonstrate the real commitment you have for each other.
Expert, independent financial advice can help you to map out and achieve a future which you both want.
From setting up home to what happens after you’ve gone, we can assist at every stage with practical, actionable insights.
To find your perfect financial advice partner, get in touch today.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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Couples financial planning involves partners working together to manage money, set shared goals and plan for life events such as buying a home, raising children, retirement and estate planning.
Open financial conversations build trust, reduce misunderstandings and help couples make better long-term decisions about savings, investments and protection.
There is no one-size-fits-all answer. Some couples combine finances fully, others partially, and some keep them separate. The key is transparency and agreement on shared goals.
The earlier the better. Major life events such as moving in together, buying a home, having children or planning retirement are ideal times to start.
A financial adviser provides impartial guidance, helps align goals, identifies risks and creates a tailored financial plan covering mortgages, protection, pensions and estate planning.
Investors today face a wide range of choices when building long-term wealth, with one of the most fundamental decisions whether to invest actively or passively.
While both approaches aim to grow capital over time, they differ meaningfully in philosophy, implementation and responsiveness to changing market conditions.
Understanding these differences is essential – not only when selecting the most appropriate strategy for you, but also in appreciating how active and passive approaches can work together within a well-constructed portfolio.
Active investing relies on the expertise of professional fund managers who carefully research and select investments with the aim of delivering returns above a specific market benchmark.
Managers assess individual companies by looking at factors such as how competitive they are, the quality of their leadership, future growth opportunities, and wider economic and political trends.
Their goal is to invest in companies that appear attractively valued and have strong long-term potential, while reducing or exiting positions where prospects are weakening.
One of the main advantages of active investing is its flexibility, particularly during periods of market uncertainty.
Active managers can adjust portfolios by reducing exposure to higher-risk areas, increasing diversification, or holding cash temporarily to help protect capital when markets are under pressure.
That said, active investing also comes with considerations.
Active funds typically charge higher fees to cover the cost of research and ongoing management, which can reduce returns if a manager does not outperform.
Performance also depends on the manager’s skill and judgement, meaning results can vary over time.
Passive investing takes a different approach, aiming to match the performance of a market index – such as the FTSE 100 – rather than outperform it.
Passive funds do this by holding the same companies, in the same proportions, as the index they track – such as the FTSE 100 or S&P 500.
Rather than trying to identify individual winners, the focus is on capturing the overall return of the market.
One of the key benefits of passive investing is its low cost.
Because passive funds require less day-to-day decision-making and research, fees are typically lower than those of active funds.
Over long periods, these cost savings can make a meaningful difference to overall returns.
Passive investing also offers simplicity and transparency, as investors can clearly see which markets they are invested in and how their portfolios are constructed.
However, passive investing also has limitations.
Passive funds do not adjust in response to changing market conditions.
When markets fall, passive strategies will reflect those declines and must rely on a subsequent recovery.
As a result, passive investing is generally best suited to investors with a long-term outlook who are comfortable riding out periods of market volatility.
During periods of steady economic growth and rising markets, passive investing can be a very effective approach, allowing investors to benefit from broad market gains in a simple and cost-efficient way.
Lower fees also help support returns over the long term.
Looking ahead, however, the investment environment appears more challenging.
Increased geopolitical uncertainty, changes in monetary policy, uneven performance across sectors and higher market volatility mean returns may be less consistent.
In these conditions, the gap between stronger and weaker companies often widens, creating both risks and opportunities.
Historically, this type of environment has tended to favour active management, where careful selection and flexibility can add value.
For many investors, the higher costs associated with active investing, along with the risk that a manager may not consistently add value, make a fully active approach less appealing.
As a result, rather than choosing between active and passive investing, many investors opt for a blended approach, combining elements of both.
One way this can be achieved is by using active asset allocation alongside a core passive portfolio – an approach adopted within the Fairstone Pure Passive MPS range.
Passive funds are tied closely to index structures and cannot adjust when certain regions, sectors or asset classes become overvalued or overly concentrated.
Active asset allocation provides the flexibility to rebalance portfolios over time – tilting towards more attractively valued areas, introducing defensive assets such as bonds or alternatives, and managing risk as market conditions change.
Similarly, blending active and passive funds – the approach taken within the Fairstone Nova MPS range – allows investors to benefit from low-cost market exposure while selectively allocating to active strategies in areas where skill, flexibility and insight have the greatest potential to add value.
Ultimately, both active and passive investing offer clear benefits, and neither approach is right in every situation.
The most suitable option depends on your individual goals, investment timeframe, tolerance for risk and how closely you wish to engage with your investments.
Passive strategies can be particularly effective during periods of steady economic growth, providing broad market exposure in a simple and cost-efficient way.
Active management, meanwhile, may add value in more uncertain or volatile environments, where flexibility and careful investment selection become increasingly important.
For many investors, a blended approach offers the most balanced solution—combining the efficiency of passive investing with the adaptability and insight of active management.
By using both approaches together, portfolios can remain cost-effective while retaining the flexibility to respond to changing market conditions.
Whichever approach is taken, it is important to remember that markets will rise and fall over time.
Maintaining patience, diversification and a disciplined long-term perspective remains key to achieving successful investment outcomes.
For expert advice on investment approaches and which could work best for you, contact one of our advisers today.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
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The main difference between active and passive investing is how investments are managed.
Active investing involves professional fund managers selecting individual investments with the aim of outperforming a market benchmark.
Passive investing aims to match the performance of a market index by holding the same investments in the same proportions, with no attempt to outperform the market.
Neither active nor passive investing is universally better.
Passive investing can be effective during periods of steady market growth due to its low cost and broad market exposure.
Active investing may add value during more volatile or uncertain market conditions, where flexibility and careful investment selection can help manage risk and identify opportunities.
Passive investing typically costs less because passive funds do not require ongoing research, stock selection or frequent trading.
By simply tracking an index, passive funds have lower operating costs, which are reflected in lower fees for investors.
Yes, it is possible to lose money with passive investing.
Passive funds fully reflect market movements, meaning when markets fall, the value of the investment will also decline.
Passive investing is therefore best suited to long-term investors who are comfortable with short-term market volatility.
No, active investing does not always outperform the market.
While some active managers can add value, especially in certain market conditions, performance depends on the manager’s skill and judgement.
Higher fees also mean active managers must outperform by a sufficient margin to deliver better net returns than passive funds.
For many investors, a blended approach can be beneficial.
Combining active and passive investing allows investors to benefit from low-cost market exposure while selectively using active strategies in areas where flexibility and expertise may add value.
This approach can help balance cost efficiency with risk management.
A blended portfolio may suit investors who want long-term growth, cost efficiency and the ability to adapt to changing market conditions.
It is often appropriate for investors who prefer a diversified approach without relying entirely on either active or passive investing.
Choosing between active, passive or blended investing depends on your financial goals, time horizon, tolerance for risk and personal preferences.
Speaking with a financial adviser can help determine the most suitable strategy and ensure your investments remain aligned with your long-term objectives.
Hello!
Just to introduce myself, I’m Russell Bignall and I’m the Group Managing Director here at Fairstone.
This is the first in a series of regular columns where you’ll be hearing from me and other members of the team.
I have to start with a confession: I enjoyed Christmas perhaps a little too much.
I have a terrible weakness for a good cheeseboard so I found myself in the first week of January sweating it out in the gym trying to make up for my sins.
It’s a slight consolation to know I wasn’t the only one – I’m sure many of you would have been in a similar position (or at least thinking about it) as so many of us try to turn over a new leaf in the New Year.
Yet while people often think about shedding a few pounds in January, not enough of us consider the thousands of pounds we could be saving by investing our money.
Let’s take the past year as an example.
If you’d invested the maximum ISA allowance of £20,000 at the start of the 2025/26 tax year into a cash ISA at the best available rate of 4.33%, your money would have grown to £20,645 by the end of 2025.
Not bad, you might think.
Yet if you’d invested the same amount in an ISA on the Fairstone Nova 9 model portfolio over the same period of time, your money would have grown to £24,300.
While investment returns aren’t guaranteed, you can see how a similar performance over the course of a number of years could make a huge difference to how much your money grows.
You don’t need to take my word for it.
Even the Chancellor Rachel Reeves in her Budget speech pointed out how that someone who had invested £1,000 a year in an average stocks and shares ISA every year since 1999 would be £50,000 better off than if they’d put the same money into a cash ISA.
Look over a longer term and you can see the difference between investing money and keeping it in cash:
And the other thing to bear in mind is the fact that, much like me with the Christmas cheeseboard, inflation will keep eating away, reducing the amount your money is worth:
While everyone needs a ‘rainy day’ fund to cope with unforeseen emergencies, investing money with the help of expert advice can be a life-changing decision.
This applies not just to your own finances, but for those of your nearest and dearest.
Investments like a Junior ISA or a child’s pension can make even small amounts of regular gifts add up to a fantastic start to adulthood or a financially secure future for your children or grandchildren.
And the best part of this is that, unlike sweating it out in the gym, making this change couldn’t be easier.
All you need to do is pick up the phone to your Fairstone adviser, pop them an email or fill in our form below.
It could be the best exercise you do this year or for many years to come. Now if you excuse me, I have an exercise bike with my name on it…
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax treatment depends on individual circumstances and may change. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is also not a reliable indicator of future performance. Always seek professional advice before making financial decisions.
