'Looks good on paper....'

Well Summer has finally arrived..The sun is here, the shorts are on and mothers all over the country are convinced that 'Wine o' Clock' starts around 11.48am as they contemplate 6 weeks of entertaining their kids!!!

My blog this week, has spun from someone else's blog actually. He asked Financial Advisers about their thoughts and views of adviser registers; places where advisers can advertise themselves and their specialist areas of advice and qualifications and equally, this is where an individual can find an adviser, based on what they're looking for. The two major ones used, are 'Unbiased' and 'Vouchedfor.' Now, both require payment from the adviser to be listed and as I've alluded to in the title of the blog-both the client-and the adviser-can look good on paper.

After all, all the client initially see's is the credentials of the adviser and in turn,  the adviser will see what the client has entered, so the next stage is to arrange a date..er..I mean meeting.

Now these blogs are my own views and thoughts-I've never used Unbiased, Vouchedfor or anything similar-neither have I used dating websites!

So, My own thought, is that there will be some nerves kicking around. The individual, making sure some questions are prepared as well  as bringing along some documents and the adviser may be trying to set the scene, go for some rapport building (nice weather?!) and not talk shop first off. The adviser may (I stress may) be thinking about the cost he pays to be on the register...either way, it's pretty tense and if neither party has the wherewithal or personality to break the ice and strike up a conversation, then this meeting could be pretty short and all the marrying up of specialisms etc will be lost.

Financial Advisers are looking to create relationships and rarely are we interested in looking at a singular bit of transactional work. In order to grow my client bank, I want to get my personality and individuality 'out there' and in order for any relationship to be successful, you have to 'know, like and trust' someone-It's why I use LinkedIn, Facebook, Twitter, Blogs, my radio show and networking-to get amongst people. Knowing that my speciality is dealing with business owners and their employee's-I also spend time with Accountants-Most businesses have one and trust them, so if I'm put in front of you because your accountant thinks it will be a good idea, chances are he knows us both as business people and individuals.

Qualifications; The Financial Conduct Authority set the bar for what advisers can and cannot do , based on their level of qualification, which is most welcomed in my view-but-just because an adviser cant do it themselves, doesn't mean that the adviser doesn't have a contact who is qualified. Zig Ziglar once said 'It's attitude, not Aptitude, that determines altitude' and I'm sure there are people reading this, who owe a great deal of thanks to an employer who looked beyond the CV to employ someone and long may that continue.

So if you're a business owner and you need to -well, sell yourself- as well being in registers and directories, get out and about and work out who you need to help you. If you're an individual looking for a Financial Adviser and you're using Unbiased etc; spare a thought for the Financial Adviser-they're probably as nervous as you are!! and to augment your search, use social media, friends and family-You never know, with this small world of ours, I could be meeting you very soon!!!!

Finally-the Picture..It is the 'Invincible' team of my beloved Arsenal that went unbeaten in the Premier League in 2003/04. They won the Premier League, but nothing else that year, reaching the semi finals of the FA Cup & League Cup and Quarter Finals of the UEFA Champions League..critics later said that they should have won the treble because "On paper, that team should beat everyone and anyone".....

Have a wonderful week

Victor

Victor Sacks is the Company Director of VS Associates Ltd an appointed representative of Sense Network, Authorised and regulated by the Financial Conduct Authority.

If Victor has piqued your interest, feel free to email: victor@vsassociates.co.uk telephone:01480 384711 or connect to him via LinkedIn or twitter @SmartSacks

"Lights go out...Walls came a tumbling down......"

Lets be honest, no other blogger will combine a Paul Weller lyric with the bible, will they?!! After Brexit, I'm wondering how many of us thought this would happen, walls tumbling etc...But hang on? 'Property Investment Funds are being suspended' I hear you say? 'is that not the walls come a tumbling down?'......

Hence, why like buses, I thought I'd write another blog. As always, my blogs are just a comment, thought or view-not actual advice.

Property-that great stalwart of British wealth. I can touch it, see it, feel it and live in it, or get others to live in it & pay me for the privilege. I can own properties that people work in, that I work in-because after all, 'You can lose on property, can you?' and 'You can always sell a property and get the cash, or borrow from the bank against it.'

To be honest, a lot of people I've met over the years have this viewpoint. But when we look closer, we genuinely have to consider property as risky or as safe as any investment. I mean, you can't break a brick off your home, go to Waitrose, get a cartful of shopping and present the brick in exchange, can you? Investing in property has to be given careful consideration, because in order to sell, you need a buyer and that buyer has to be able to get credit, or have the cash. Now we have been seeing falling values in houses at what I would call, the top end (£1m+) for some time. This is now ricocheting down-albeit slowly. Locally here in Brampton, I'm seeing houses up for one figure, then four weeks' later, the price has reduced £10k and that's on £250k priced properties. Now true, the property prices were -in my view-bonkers already, but some sort of reality check has been taken place over the last few months and 'Brexit' has exacerbated it.

Now go from a 3 bed semi in Brampton and zoom out to the top and bottom of the country, from one bed flats in Central London to sprawling countryside mansions (probably cost the same!) add in some natural market ebb & flow together with the results of Referendum, together with the uncertainty that brings and if you're invested you might want to switch funds to areas that are 'safer havens' life cash, governments bonds/Gilts, Gold etc. Most Property funds hold cash or shares for this reason, but probably no more than 20% of its total value, again, catering for the natural swing of things. But-if huge swathes of investors want to exit, that creates a huge problem. Property funds can invest in commercial premises, big, well known iconic buildings, as well industrial estates etc. neither of which are easily sold and, if too much property comes onto to the market at one time, we all the effect this has. So rather than create such issues, quite a few Property investment funds (Standard Life, Aviva & Columbia) have suspended withdrawals for 28 days, whilst Aberdeen, L&G & Canada Life have added a fair value adjustment of somewhere between 15% & 17%-meaning if you to cash in, that's the adjustment that will be made on your encashment.

But lets not hyperventilate here...No horns are being blown...no walls are tumbling....property continues to be a low volatile investment and when investing via a property fund, you get all the income, but no 3am phone call to say the boiler has busted, or no tenant refusing to pay rent or, squatting. The L&G Property fund, for example, is £2.3BN and invests (as at June 2016) in over 100 UK Commercial properties and over the last couple of years, its returned just over 12% during that period (figures from FE Trustnet July 2016-values not guaranteed, investment returns and their values-can go down as well as up), so lets not rule out property just yet.

Most of my clients are recommended to have no more than 5% invested in property funds; which means they can still freely access 95% of their money, should they so desire. It also worthwhile noting that property funds such as First State, HSBC and hearthstone are, as I write, still trading normally, as some of these funds have exposure to property investments outside the UK and Europe.

We knew Brexit would bring uncertainties...At the Smaller end of the FTSE-the 250 index for example, we are seeing losses. These are the companies that would traditionally trade in Europe and as such, as well as the Brexit, they are also feeling the double whammy of currency exchange. The FTSE 100 contains huge multi nationals, who are dealing internationally and are not so affected by the Brexit per se.

So what does this all mean?

Diversification is key-ensure your current investments are well spread out and ready to deal with this unsettling timeframe, that as yet, has no timescale. With Interest rates possibly being cut, cash is clearly not suitable as an investment strategy- consider phasing any new investment you are looking to do-this could be a rare time when 'Pound/cost averaging-buying into investments at different time slots to take advantage of the up and down movement of markets'- could work.

Above all, keep in mind the timescale you originally wanted to invest for and if you are thinking about withdrawing funds-think about tax implications of doing so, where would you put it and is it really the best thing to do-alternatively, pick up the 'phone and talk to an Independent Financial Adviser who is ready to listen and help. If you've read this and previous posts, you may already know of someone you can call :)

Have a great day,

Vic

Victor Sacks is an Independent Financial Adviser. He is the owner of VS Associates Ltd, which is an appointed representative of Sense Network, who are regulated and authorised by the Financial Conduct Authority.

If Victor has piqued your interest, why not give him a call? 01480 384711 or mobile 07866 504896. Don't want to call? email him instead: victor@vsassociates.co.uk or website:www.vsassociates.co.uk