The traditional investment advice model

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As an Independent Financial Adviser I am often asked “where do you think the Global stock markets are going”, or “a friend has been promised a 15% per annum return on their investment, what do you think?”

I believe these types of questions are asked, because for decades the mass marketing campaigns in the financial press have been supported by the large Investment and Life Assurance Companies. The financial press has received large advertising revenue from these campaigns and therefore a financial industry has grown from it. These campaigns all focus on giving the next ‘must have product’ or the next ‘must have fund’. Retail investors have subsequently clamoured for these products, chasing the promises being offered. Many are then disappointed and become disillusioned with the investment markets over time, leading to them purchasing more publications to see if they can correct the situation. Thus increasing revenue for the financial press.

The real problem is that finance publications earn revenue from predicting the next best or worst shares or financial sectors for the coming year, and the retail public lap it up. The plain truth is, giving investment advice boils down to making a forecast. The publications are making a forecast, but they have no more knowledge than anyone else. Who would buy a publication that says, “We have no idea what’s going to happen” but “buy our next issue and we will repeat the same message”. Investors have therefore grown up with the expectation that an adviser, or the press can look into a crystal ball and predict the future…..well we can’t.

By Hannah Goldsmith – Goldsmith Invest

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Website : https://www.goldsmithfs.co.uk/

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You recently undertook a review of our pensions and life cover, we have had a couple of meetings with yourself and the lovely Hannah where we went through a lot of documents and even found some policies we had forgotten about.

We were very impressed at the professionalism and timely responses from yourselves and in particular the way you provided regular updates whilst additional cover was being put in place.

Whilst there is still work being undertaken on the pension front I would like to thank you for the peace of mind you have given us and would have no hesitations in recommending Goldsmith Invest in the future.

Paul Maguire, AC Bookwise