Should you review your portfolio before 2025?

12 Dec 2024

Christmas is a busy time, but the start of a new year is always a good opportunity to take a closer look at your investment portfolio and prepare for the year ahead.

The markets have been moving fast this year, and we think they will continue to see interesting trends in the next 12 months – especially with the political changes occurring in America.

So, failing to do your year-end review could mean missing crucial opportunities – or worse, overlooking risks that could impact your returns – in 2025.

With that said, unfortunately, interest rates are likely to remain a key factor in your strategy next year.

With the Bank of England’s rates still high, you might want to consider how this might affect your investments in bonds, property, or other interest-sensitive assets.

For example, are you positioned to take advantage of the rates, or could you be exposed to potential losses?

We also suggest that sustainability will remain a hot topic next year – many of you already invest in ‘green’ stocks.

Environmentally driven investments continue to grow in popularity, but some sectors have seen recent turbulence, especially during the previous Government who drew away from renewable energy provision to some degree.

Perhaps, considering the new Labour Government, it is time to review whether your holdings align with your values and long-term goals without compromising returns and reinvest in those areas where you predict growth?

As always, we suggest you consider tax efficiency as arguably one of the most important elements of your investment strategy.

Changes in Capital Gains Tax and Inheritance Tax in Labour’s Autumn Budget may affect your planning more than you expected and rebalancing your portfolio now could help optimise your tax position ahead of the next year.

Remember, in all of this, it is important to always also ask yourself whether you are taking too much risk – or not enough.

If you are unsure where to start, speaking with an independent financial adviser can help you enter next year with confidence.

Please reach out to our team for help.