Global crisis How to manage your finances in tricky times

From buying funds to sorting out your pension, Shane Hickey asks the experts about the best ways to safeguard your money

- Shane Hickey

It's understandable to be worried about your finances right now. The world seems to be lurching from one political crisis to the next, and each one has an impact on stock markets and prices. A recent survey found UK consumers are worried about a slowing economy, possible tax increases in the next budget and rising food costs. We asked experts how you should manage your money in an uncertain world.

Investments
Stock markets around the world, especially in the US, were in flux earlier this year over Donald Trump's tariff plans. Things have settled down now, but it is impossible to predict what shocks might be around the corner.

If you hold stocks and shares - in an Isa or pension, perhaps - you may have been nervously checking their value. UK fund managers have been increasing their holdings in US companies over recent years, largely fuelled by the boom in tech stocks, so big moves over there have an impact here.

But experts say the most important thing to do is to not sell-up out of panic. Analyst Dan Coatsworth of financial advisers AJ Bell says "the worst thing people can do is to see troubling things in the news and then suddenly try to shift around their portfolio". Markets have recovered in the past, he says, so patience is key.

Where this advice may differ is if you need your money for something in less than five years - such as a wedding, university fees or a house purchase. Then you should look at how much risk you are taking, he says.

Andrew Oxlade, an investment director at fund management company Fidelity International, says this could mean switching some of your money away from the markets and into bonds. Bonds are issued by a corporation or country - the investor loans it money in exchange for a fixed rate of interest.