As lockdown continues, so too does a real unpacking of people’s financial affairs and the quest to impose order. Greater numbers of women, those disappointed with their investment returns and landlords having second thoughts have all been high on our call lists in recent weeks.
Women rush for wealth advice
We were delighted to report recently that we had hit a 25% female user rate, and we’re continuing to see a rush of women seeking wealth advice.
This is amid greatly increased enquiries overall, driven by factors like people having more time to take care of easily-put-off life admin and the pandemic bringing financial planning to the fore. Yet the increased interest from women is a really tangible trend within this uptick.
It’s really interesting to see how much due diligence female users like to put into the process of finding a wealth manager and then, this complete, how decisive they are in putting their money to work
It’s really interesting to see how much due diligence female users like to put into the process of finding a wealth manager and then, this complete, how decisive they are in putting their money to work.
Women’s wealth issues have been in the media spotlight recently, which must surely be helping create a sense of urgency; but we’d also like to think our coverage has played a role too. Entrepreneurs, divorcees, professionals and women of all age groups thinking about the pension gender gap have been coming to us to find advice fast and free. Long may it continue!
Sub-par investment performance disappoints
Although few would have believed it back in March 2020, the year actually turned out to be a good one for investors. As such, investors know their managers should have not only clawed back any losses, but should be well into positive territory for the year too: according to Asset Risk Consultants, UK wealth managers generated an average return of 4.8% from sterling balanced portfolios for the year.
These are the kind of returns investors are expecting at least from their providers year after year though. We’re increasingly hearing from clients bemused that they haven’t seen more upside from recent record market highs.
These are the kind of returns investors are expecting at least from their providers year after year though. We’re increasingly hearing from clients bemused that they haven’t seen more upside from recent record market highs
Of course, risk management is a vital consideration, but that shouldn’t obscure lacklustre returns. Don’t be afraid to question your provider about the gains you’re seeing (always net of fees too) and to compare those to what might be possible elsewhere. We can set-up a beauty parade of alternative providers fast and free.
Top Tip
Getting proactive about every element of your financial affairs can seem like a daunting task, but it needn’t be. Finding an appropriate adviser certainly shouldn’t be with so many excellent providers available; just let us take care of sifting through them to find your best matches. Use our smart matching tool and in a matter of minutes you can be well on your way to having no-obligation discussions with as many firms as appeal.
Lee Goggin
Co-Founder
Landlords take a long hard look at their situation
Buy-to-let used to be regarded as a reliable and lucrative source of income, leading many to allocate a good proportion of their wealth to rental properties – not to mention all those who fell into being landlords through inheritance. A toxic mixture of issues seems to be provoking second thoughts, however.
We’ve heard worries about the new difficulty of evicting troublesome tenants, reduced yields as people move away from city centres and then also mortgage issues arising where property prices have fallen. Once “blue-chip” locations are now often looking like anything but, with central London seeing rents fall by as much as 20% due to the pandemic.
You may well find an investment portfolio generates far superior returns to rental property, in addition to being far less hassle. Our recent case study on ‘Letting go of buy to let‘
perfectly illustrates this scenario
There may be good reasons to retain property assets. However, we always remind investors that it may not be wise from a diversification perspective, given that most have the lion’s share of their wealth tied up in their home. Prices can indeed go down (and feasibly could soon), not to mention the numerous tax charges to consider too.
You may well find an investment portfolio generates far superior returns to rental property, in addition to being far less worry. Our recent case study on “Letting go of buy to let” perfectly illustrates this scenario.
Probity of pension advisers under the microscope
The pandemic has clearly got people thinking about their life plans more carefully, along with how to maximise their financial resources too. This is thankfully leading to a lot more care being taken over pensions.
Retirement planning is one of (if not the) most important elements of wealth management due to the seriousness of the stakes and the amounts of money concerned. As such, pensions-related enquiries are core business for us and the wealth managers we represent.
What we’re pleased to see is users coming to us as a means to find advisers they absolutely know are properly qualified and working for fully regulated firms. Nefarious actors have massively increased their efforts to defraud people of their precious savings – along with there being a rush to provide “advice” by those who are simply incompetent too. Pension scam alerts tripled last yeari.
Transfers to high-risk investments are a particular area of concern for regulators – as are schemes based on the cryptocurrencies and other esoteric assets. Always make sure you do your due diligence on any potential provider, or better still go through us: every one of the wealth managers we represent has impeccable credentials and an impressive track record.
Do these concerns resonate with you?
Don’t delay if you have a pressing question that you’d like to pose to an expert: we can arrange free, no-obligation discussions with a shortlist of leading wealth managers that will really put you in controlDon’t delay if you have a pressing question that you’d like to pose to an expert: we can arrange free, no-obligation discussions with a shortlist of leading wealth managers that will really put you in control.
