Finacial Investments

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

Tweet at @hannahGfs

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

Linkedin – https://uk.linkedin.com/in/hannahgoldsmith

Cards on the table time. I have a strong dislike for British financial services companies. Ever since the Equitable Life debacle I’ve viewed them all with huge scepticism. Recent experience has proved that nothing much has changed and that the entire industry is a self-serving shambles. Fortunately my point of view is supported by the author of this book. My dilemma is this: How do I make plans for my retirement without having to resort to a large financial services company that’s going to screw me for every £ I want to put aside for a rainy day?

To my delight, this book appears to understand my predicament. Not only am I understood, I’m catered for. Marvellous. I’m used to financial and investment texts being dry, boring and full of caveats. None of that appears in this book. It speaks in a language I can understand and it deals with things from my perspective. It seems to help that the author is almost as anti the financial establishment as I am.

As I skimmed through the book initially I found myself stopping for the little exercises – actually completing them – and then quietly realising that I had learned something not just new but extremely useful. I don’t think you can expect to get all the answers in a book of this size, but it certainly gives me the confidence and a basic understanding to take some steps towards getting this important life skill right.

Book Review