Close the door on the way out...

No prizes as to what I'm eluding to in my blog this week. All of us would have woken up last Friday with a myriad of thoughts running through our head. From "yippee" to "Armageddon out of here."

Irrespective of mine or anyone else's viewpoint, life goes on and indeed, 6 days later, one could argue, what was all the fuss about?

Financial Markets have weathered the initial storm, some companies that threatened to leave the UK if we voted out are rethinking things-some have even come out and said they're staying, The USA has changed it stance slightly on trade deals from "get to the back of the queue" to "of course we will consider trade deals with the UK" and we have countries like New Zealand, Australia and South Korea at the front of the queue, waving order forms at us.

Even the EU-yes, the EU say that so long as we agree to the four core principles of Freedom of movement-workers, capital, goods and services-we can access the single EU market (amazingly, those that we had, while we were a member state!)

My own view, is that this vote was a political one and not a financial one. Financially, the UK is fundamentally sound. We have cash stocks, we have a thriving and growing economy. We have financial stability. Politically I think we are all over the place, as demonstrated by the lack of trust the public have with all political parties-52% of voters decided to ignore the request by the three main leaders in the UK and voted against them. We most certainly didn't appreciate The President of the United States saying what he did either. So now we face uncertainty with no Prime Minister as such, a Labour Party that is so divided, one wonders when it will return as a credible opposition and a Lib Dem party that is rebuilding itself. So what next?

Well a vote 'Out' was a vote for uncertainty,that's for sure. We will see a new Prime Minister and possibly a new leader for the opposition, will this lead to a General Election? who will trigger Article 50 (the document that dictates how we exit the EU)? what will happen when we do trigger it?

Europe also have some up and coming issues: Greece has yet to be resolved. Jean Marine Le Pen, leader of the National Front in France, is calling for a 'Frexit', Geert Wilders, head of the PVV-a right wing party in Holland,is looking for a 'Nexit' and Austria was very close to be led by an Ultra Right political party. Oh, and lets not forget the US elections as well.

Clearly, over the next few months, any of the issues I've outlined-or indeed a collaboration of, will have an effect on world trade, economies and investment markets. As I write this, Boris Johnson has decided not to stand for leader of the Conservative party. I'd imagine so as not to run against Michael Gove.

So, with uncertainty, comes a time to look at your investment strategy. Whether your ultimate risk levels are none, or off the scale, in an ideal world, we should 'be prepared' and look at spreading things around. I've said this before, but if we look at the British Summer, would you invest in Sun cream and Ice Cream, or Sun cream and Umbrellas?

Just in case you're wondering-the picture? the door to my office and its always open!

Have a great week,

Victor

Victor Sacks is an Independent Financial Adviser and Company Director of VS Associates Ltd. VS Associates Ltd is an Appointed Representative of the Sense Network and is registered with the Financial Conduct Authority no:725170

If Victor has piqued your interest, why not get in touch? check out his website: www.vsassociates.co.uk or email him: victor@vsassociates.co.uk

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'My Mum Said if I have to ask then I can't afford it.....

Value......?

Maserati, Ferrari, Breitling, Rolex, Laboutin. Hand Made Suits, Business class, bespoke furniture...

For some, the above names and items will not only evoke thoughts of a few zero's at the end, but also perhaps, quality-maybe even a big tick on the Bucket List of life. Over the years, these names and items have built their own value and are synonymous with quality-yes, we can always luck out and buy one of the aforementioned that was made on a Friday afternoon, but the aftersales service will be just as good and you'll be even more pleased you spent £850 on a pair of shoes.

You'll notice that 'Financial Advice' was missing from the list-yes I cant believe it either! In a recent article (Financial Adviser 1st June 2016 page 10 to be precise) was an article that got me. It's not a new story, but it got me thinking. the headline says 'Brits wont pay more than £50 per hour for financial advice'

Now when the going rate roughly, is £125-£150 per hour, there is a bit of gap-like turning the Marianas Trench on its side sort of gap-in cost vs value.

On the next page was an advert about the CII awards and the various categories you can enter into to (Let me tell you how brilliant I am and maybe I'll win). But if I fail to show value to my clients, then potentially I wont have a business to shout about and the CII will lose serious amounts of subscription money as advisers drop off the radar because they can't get the income they need (not want), because no client is prepared to pay the going rate. Now I'm sure I've over egged and exaggerated things to make my point, but it is a point worth making.

In whatever industry we work in, there are always assumptions made that a client 'knows' what the basics are of our job and what we do and we decide not to showcase it. In the case of a Financial Adviser, the 5,000 strong poll is telling us we need to elaborate more on the 'behind the scenes' work that goes on, so we can build up our value and that when that bill is put in front of them, it is accepted without hesitation, because the value has been perceived.

For example; when I've met a client to discuss investment or pension, I will come away with documents that will help me understand a client. I use that information to decide where, of the 3,000 or so investment funds available to me, I am going to recommend my client to invest and I wont spread across all 3,000 but maybe 15/20 which I have to whittle down. Once I've the investment funds sorted, where am I going to hold them? does my client want 15/20 bits of paper through their post every quarter? or would they prefer one place, where they can log in and see everything? if the latter, there's 60 odd places those 15/20 funds can be held-my job? who's best for the client? what were their requests? and that's just to get things going. Once a quarter, I'll look at everything again and check it's all running ok. Rarely, what I have just described, will anyone be told that's what happens.

For the sake of all our businesses, let this be an 'under the hood' check. Do I have a brand name that exudes value and quality? Do I tell my clients exactly what I'm going to do, or do I assume they know, because of the job I do?

Maybe, next year, I'll re-write this blog and hopefully my business will sit alongside those I listed.

Have a great weekend

Victor

Victor Sacks is an Independent Financial Adviser and owner of VS Associates Ltd. VS Associates Ltd is an appointed Representative of the Sense Network and is Registered with the Financial Conduct Authority.

If Victor's View has piqued your interest, then give him a call on 07866 504896. email him victor@vsassociates.co.uk or visit www.vsassociates.co.uk

Victor can be followed on Twitter (@SmartSacks) LinkedIn and Google+