Insights - The Wealth Coach : The Wealth Coach

21.02.2023

Divorced?

You are divorced. Making the right decisions is crucial to maximising and preserving your wealth. Who you talk to changes everything! If you could interview every financial advisor or wealth manager, each one would be friendly, professional, welcoming and sincere. In fact, your mother would love them! The chances are you will experience rhetoric, the art of persuasion. It is why Warren Buffett once said the greatest salespeople in the world come out of Wall Street. As such simply accepting rhetoric to make a decision, is far from the answer. If you are divorced, of course, you need someone you…

21.02.2023

Making good financial decisions relies on basics

Investment costs. They are always more than you think they are. Simple arithmetic shows that the more you pay, the less you get. Wealth coaching helps you have a clearer picture of investment costs. Investment performance. Very few individuals have any clear strategy for measuring the performance of their portfolio. Without understanding what you are trying to achieve, it is impossible to be clear if you have been successful or not. Wealth coaching will help you understand more about performance measurement, which in turn can improve your decision making Investment risk. Most individuals tend to summarize their risk as low,…

12.02.2023

Retired or Thinking About Your Retirement.

You are retired or in the process of planning for your retirement. Making the right decisions is crucial to maximising and preserving your wealth. Who you talk to changes everything! If you could interview every financial advisor or wealth manager, each one would be friendly, professional, welcoming and sincere. In fact, your mother would love them! The chances are you will experience rhetoric, the art of persuasion. It is why Warren Buffett once said the greatest salespeople in the world come out of Wall Street. As such simply accepting rhetoric to make a decision, is far from the answer. If…

12.02.2023

Everything you want to know about investing….on an index card

Here’s the index card below. It went viral in 2013. Its written by Harold Pollack, a Chicago University professor. He was interviewed and metaphorically mentioned, “that the best [financial] advice for most people would fit on an index card”. Its based in the US but the principles remain the same wherever you live. There is a problem. It’s not the contents, its taking action. So many times in life we know what to do but simply do not follow through. It’s one of the reasons we do what we do is to ensure action is taken. On the back of…

01.02.2023

Wine, Art, Cars, Coins, Watches, Diamonds…

Perhaps the most traditional way of investing into real assets is to buy an investment property. Often investors feel comfortable buying property as its something they can understand. You can visit it. You can touch it. You can also buy other real assets. Art, Classic Cars and Wine are examples. Over the last 10 years, according to Knight Frank, classic cars have risen by 334% Wine is up 192% over 10 years. In the last 12 months, art is up 21%. Last year, a 1956 Aston Martin DBR1, raced by Sterling Moss, was auctioned by RM Sotherby’s for US…

23.03.2022

Make your Pension work for you.

How do you make sure your pension is right for you? Are you worried about the future of your pension? Perhaps you are concerned you should be doing more to top-up your retirement fund, or wondering whether you would be better off putting your money elsewhere? Maybe you are just wondering what the state will give you when you retire, and what age you will have to work until to qualify? Our Specialist Pension Advice helps you… + Understand if your pension scheme is appropriate for you? There are many types of pension schemes. Many product providers. Many funds. Are…

03.03.2022

Helping you towards your goals

Making the right decisions is crucial to growing, preserving, and passing on your wealth. Our Wealth advice is focused on 3 areas + How to grow your wealth. Securing the future you want Whether you want to grow your wealth for a retirement income or a legacy to pass on to future generations, we can help you set goals and try to achieve them. + How to preserve your wealth It is easy to lose money by making the wrong decisions. By focusing on protecting your wealth, you give yourself peace of mind for you and your family + How…

17.02.2022

Get help navigating complex inheritance tax rules and pass on your estate in a tax-efficient way.

Making the right decisions is crucial to maximising and preserving your wealth. After taking inheritance tax advice you will: + Understand how the rules apply to your situation + Get expert recommendations on how to pass on your assets in a tax-efficient way + Have greater control of how and when you pass on your wealth Why take inheritance tax advice? Most people consider inheritance tax (IHT) to be a tax on death. However, it can also affect you in your lifetime. Selling your business can drastically change how you structure your estate. Gifting into trust can incur IHT. Helping…

13.01.2022

Retired or Thinking About Your Retirement.

You are retired or in the process of planning for your retirement. Making the right decisions is crucial to maximising and preserving your wealth. If you are retired or planning for retirement, and thinking about pensions, you want: + An action plan that guides your decision making + Peace of mind that you are making the right decisions + Minimal administration. Let’s face it, who doesn’t want that! + A process to measure success or failure? And you have so much choice… There are thousands of firms you can approach for advice to give you what you want. All offer…

06.12.2021

Helping you towards your goals

20.09.2021

Do I invest in AIM ISAs?

Alternative Investment Market (AIM) shares first became eligible for inclusion in Individual Savings Accounts (ISAs) in August 2013. Here, we weigh up whether you should hold them. Whilst everyone focuses on the benefits, it’s important before you proceed to think more deeply about the negatives. The reason most investors look at AIM is because of tax. Tax is the driver. The investment providers explain, if you invest into AIM ISA, you’ll save 40% tax; so even if your investments fall in value, a portfolio is unlikely to fall by more than 40%, so what have you got to lose? Yes,…

16.01.2020

Have you thought about the choice before?

If given a thoughtful choice most people would want to take advice from a Chartered Financial Planner rather than someone who is just regulated to give advice. Yet there are more people who are regulated giving advice that those that are Chartered. So is Chartered that important? (it is, but you may not recognise why). Perhaps you will compromise on Chartered if the advice is independent? Which is more important? What if the adviser is Chartered but works for a firm that does not offer independent advice? By the way, firms like St James Place, Tilney, Brewin, Schroders Wealth…the list…

30.08.2019

Are you taking your medicine when you invest?

A child’s face says it all when you ask them to take their medicine. They grimace. Often the taste is horrible. As a parent, you want them to get over the taste because the medicine will help them feel better. As a parent, you want your child to postpone immediate gratification on the basis that deferred gratification will have a better outcome. The message is simple “Put up with the bad taste in your mouth, you will feel better in the future.” When you invest, when does it ever feel bad? The investment industry likes to sugar coat all decisions. …

04.07.2019

How do you improve your tennis, golf, football and investing?

When I watch my youngest boy’s football team, it’s painful. They don’t look like professional footballers. Their positioning, passing and skill levels are at a very low level. Of course, that’s what we expect. They are under 10. Yet there is always room for improvement. The majority will never reach the dizzy heights of a professional sportsperson, but they are happy to practice to keep improving. Have you ever watched amateur golfers? Do they look anything like their professional counterparts? The short answer is no. It doesn’t mean they can’t hit the ball well, but when you study their form,…

14.06.2019

Is Woodford finished?

Mr Woodford is the catalyst for this story, but he is by no means the only one. I am reminded of a Mafia saying, its business, not personal. Could this happen again? What do investors need to do now? Is Neil Woodford finished? The probability is yes. It’s mathematics and human nature. We all know that Neil Woodford has been granted star fund manager status. Historically, if you compare his time at Invesco with the FTSE All Share, then Neil Woodford was a clear winner. There can be discussions as to whether beating the FTSE All Share is a fair…

14.06.2019

Are investment best buy lists in your best interest?

The Woodford debacle is creating ripples and possibly some waves. The FCA is now looking at ‘Best Buy ‘ lists. See here. Firms like Hargreaves Lansdowne understand psychology. If you don’t understand something, you need a nudge. So the best buy list is a nudge. And if its a best buy, then individual investors feel safety in numbers. If it’s a bad decision, then there is comfort in not being the only one! It’s a defence mechanism for laziness. Best buy lists are great for the promoters. In fact, best buy lists are actually the easiest ‘to sell’ lists. According…

13.06.2019

The Woodford debacle is reaching new heights….oh dear, oh dear…

How far will the ripples spread? This is now a problem that all investors have to face. Do they trust the people who are managing their money and do they know where their money is invested? Could you answer these questions? The latest news detailed in the FT, Neil Woodford risks being kicked off listed namesake investment trust, must make investors rethink. The article states ” Close to three-quarters of the investments held in WPCT are also held in the Equity Income fund, which is in the midst of a big reorganisation as it attempts to raise cash to repay fleeing investors.”…

05.06.2019

Will Woodford be the catalyst for change?

This is big news. The key issue is what next for investors? The media has reacted to the suspension of trading with Neil Woodford’s fund. You can check out the links below for more information. My focus is to help investors think more about their actions. Let’s start with Hargreaves Lansdown (HL). Much in the Media has talked about the role of HL. Their business grew as DIY investors needed a platform to trade. To give help to DIY investors who were not experts, HL offers ‘Best Buy” lists. So what happens? People buy from the Best Buy list. Clearly,…

16.04.2019

Can a cat make more money in the stock market than a professional investor?

The UK’s Observer newspaper ran a competition in 2012 to find out. It pitted the stock-picking abilities of Orlando, a ginger feline, against three experienced money managers and a gaggle of high schoolers. The cat and the other two groups were each given an imaginary £5,000 at the start of the year to invest in stocks. By year’s end, the students were down to £4,840, while the professionals had actually made money, accruing £5,176. Meanwhile, Orlando, who selected his stocks by throwing a toy mouse on a grid of numbers allocated to different companies, had amassed £5,542. This was more…

20.03.2019

Dan completes Shrewsbury 10K…so what you may say?

What’s this got to do with money? More than you think… Dan is my eldest son and works with me. On Sunday 17 March he completed the Shrewsbury 10K in under one hour. He ran with his wife, Jess. It’s a race but it’s also a time trial. It’s a race for those at the front and the winner finishes first. (doh) It’s a time trail as each runner has a chip in their shirts so that when they pass the start and finish lines, they know their own race time. As they run around the course, there are Pacers. If…

29.11.2018

Around 500 footballers lost £1bn from poor wealth advice

As a fly on the wall, can you imagine the conversation… Advisor “We can help you save tax” Footballer ” Thanks, that’s great, but are you sure I’m not doing anything wrong or illegal” Advisor “No, but just remember, the worst that can happen you just end up paying the tax anyway, so what have you got to lose?” Footballer ” Well, if you think its worth a shot, let’s do it” We all want to save tax. It’s natural for all of us to look for ways to minimise or mitigate the tax we pay. We don’t want it…

27.11.2018

A sign of things to come

This is a company called Lemonade. It is reimagining insurance. It’s another step forward to illustrate change. If you see it in action, you’ll hope it comes to the UK. But if you listen to the video, there is an experiment. It talks about honesty and dishonesty. The difference is the ‘fudge factor’. If the speed limit is 40mph, is it OK to exceed, if only a little? Is it OK to lie about yourself for online dating..maybe only a little? These are fudges. But when does a fudge become unacceptable? From an investment company perspective, when is…

15.10.2018

Do you bank with Lloyds? Do you have investments with Lloyds?

It has been reported in the FT “BlackRock has won a mandate to manage £30bn of the £109bn Lloyds Banking Group portfolio put up for grabs after the bank this year said it would drop current manager Standard Life Aberdeen. The remaining £80bn of assets are still up for grabs, Lloyds said.” This story is not all about Lloyds as what happens at Lloyds happens in so many other institutions. In this case, Lloyds Bank is delegating their investment management. Part of the mandate has been agreed with BlackRock, the biggest fund manager in the world. Here’s the question….

11.10.2018

The St James Place Review

Do you know anyone with funds with St James Place? Do you have St James Place funds? Are you a client of St James Place? If so, you need to read this independent report. It concludes… “There restricted approach coupled with their charges and fund performance would suggest that investors with a focus on maximising returns within a suitable risk portfolio, that is both cost effective and delivering on performance, would be better served elsewhere.” It’s worth repeating. “Investors with a focus on maximising returns within a suitable risk portfolio, that is both cost effective and delivering on performance,…

30.08.2018

Zebras everywhere…

How do you invest £1 million? It’s quite easy. Go to any Private Bank, Bank, Building Society, IFA, Wealth Manager, they will all say, “PICK ME PICK ME. We are the best.” Whilst the people who work for these firms are friendly (they have to be), intelligent and look the part, everyone has a story about why you should choose them. Think of them all as a herd of Zebras. Its what we call the Zebra effect. “A state of mental dating distraction. It occurs when an individual on the make is presented with too many equally…

30.08.2018

How proficient are your financial advisers?

If you invest your money, are you talking to a Chartered Financial Adviser, Certified Financial Planner or Chartered Financial Analyst? If you’ve not checked, its time you did. The title “My Yoga Teacher Decided to Become a Doctor” was written by Blair duQuesnay. She is a US adviser. Here is the link to her article. I’ve also added the contents below to read. She explains that her Yoga teacher has decided to retrain as a Doctor. It will take her about 8 years. She makes the point that a financial adviser can be regulated to provide advice within months. It is the same in the UK. …

04.07.2018

Inheritance tax stories; what’s yours?

Have you ever said “I’ve paid income tax all my life, why should I pay IHT. It seems unfair.” I’ve heard these words or similar so many times. As such, because it seems unfair, people look for ways to save Inheritance Tax (IHT). It’s a perfectly natural reaction. However, often the decisions people make are not clearly thought through. Has intelligent thinking been applied? John had sold his business for a sum in excess of £10m. He was concerned about IHT. I said, why did you sell the business? You were making all the money you needed and…

28.06.2018

Research shows fund managers from poorer backgrounds outperformed those from richer backgrounds.

Here’s the question you need to ask yourself. When you invest your money with private banks, investment or fund managers, stockbrokers, IFAs, wealth manager’s….what do you expect? What do you want to achieve? Do you want them to make as much money for you as possible within your risk appetite? Alternatively, do you just want them to be nice to you? Be polite? Do you want them to be posh with an old-fashioned public school accent? Here is some research to think about. Does family background influence success? According to the Financial Times, A 2016 study found that…

20.06.2018

You’ve transferred your pension, so how do you make sure it’s a success?

John and Sarah came to discuss their pension fund. John had previously transferred from a final salary scheme; the value was £850,000. The advisers who transferred the scheme had set up a portfolio. Yet, John didn’t really care about how it was managed or the costs. His view was, I don’t care how much it costs to manage the fund because all I need is 2%. He had calculated to equal the benefits of his old final salary scheme, if he just made 2% each year, he would still be ahead of any benefits his scheme offered. As far as…

20.06.2018

How can we use technology to deliver better investment outcomes for investors?

Alice Ross of the FT says “The point of robo-advice was originally to give people who might not otherwise be able to afford financial advice some sort of steer at a lower cost to the banks and other providers. All the high street banks — including HSBC, NatWest and Santander — are busy launching some form of robo-advice. But it turns out higher-net worth types quite fancy the idea as well.” There are so many issues here…Robo advice is not really the right terminology but its stuck with us for the moment. Whilst the investment industry needs to embrace…

29.05.2018

First learn not to drown, then how to swim. Learn why you invest before you do.

I was sitting by the swimming pool waiting for my swim advancement class and watched adults learning to swim for the first time. I could see their fear of the water. Whilst the teacher was helping them with floats and breaking the stroke down into bite-size deliverables, I started to think… Maybe they shouldn’t be thinking about swimming at all. There is a difference between swimming and not wanting to drown. Which is the greatest fear? Without a doubt, not wanting to drown. The basic purpose of swimming is not to drown. The pleasure of swimming is secondary. …

14.05.2018

Top financial adviser from Shrewsbury

For the last 3 years, we have been named as one of the top 25 financial planning firms in the country. The accolade recognises the leading financial planning firms across the country. The award is based on the results of a survey of around 100 private financial planning companies that seeks to identify those with the best standards of advice and quality of client relationship. Nic Round said: “To be named 3 years in a row is a real pleasure as one of the top 25 financial planning firms in the UK. The world of financial advice and planning is changing fast…

09.05.2018

Perhaps tax havens need to change their focus…

Are offshore centres good or bad? It depends. The latest news that Bermuda and the Cayman Islands will be forced to lift their veil of secrecy over ownership of companies and increase transparency is a success for financial transparency campaigners. You can follow the thought process. If you are trying to hide money and avoid tax, then investing in an offshore centre where there is little or no transparency, offers potential opportunities for those individuals and companies wanting secrecy from their dealings. In fact, The World Bank has estimated that corruption adds up to 10% to business costs globally. According to…

26.03.2018

Do you buy gold?

Merryn Somerset Webb at the FT recently discussed buying gold as her hedge against inflation. She is keen. I disagree. A few years ago I was interviewed on Moneybox about gold. My final comment was ” Warren Buffett sees no need for gold in his portfolio, and what is good enough for him….” The point is not whether you agree or disagree, but it’s all about numbers. Merryn talks about a hedge, but what does that mean? She mentions no detail about how much to hedge a portfolio? 5%? 10%? 50%? Here’s the problem. If you hedge 10%. In other words, allocate 10%…

06.02.2018

Investments in the Dog House

Bestinvest issue a list of “Dog Funds”. What is a Dog Fund? They are funds that underperform. The list is compiled twice a year. The key point is that £6.4bn is invested in these Dog Funds. The question is why? Why is so much capital still invested in these funds? Why do investors fail to take action? What made them invest in these funds? It’s not if the companies who run these dog funds are shady or esoteric. Aberdeen Standard, Fidelity, UBS St James Place, Jupiter…these are big named companies. And these companies still charge you for being in a Dog Fund. …

05.02.2018

Why perspective is vital in your investment decisions

Its a statement made by Tottenham boss Mauricio Pochettino. He is now one of the most highly rated managers in world football. He says ” After games, my wife gives me a lot of advice and criticism. Sometimes I am upset, I say why do you advise me this? But I like it, because to listen to a different point of view is always important. You can find a different position or point of view that can help you to be more creative.“ This is the point. Charlie Munger, (Warran Buffett’s partner) has often said, try to fully understand the other persons’…

02.02.2018

“If I knew when I was going to die, then planning would be so much easier.”

In conversation with clients, I have heard many times the statement. If I knew when I was going to die, then planning would be easier. The purpose of this article is to explore an opportunity for the insurance industry to develop a new product that can really help investors in their planning. Lets imagine you think you will live past the age of 85. Then from age 85, you benefit from a guaranteed income until you die. Would you buy such a policy? Many thousands of people buy life assurance. They are hoping they don’t die early, but recognize that its important…

Featured