Apt sign for present financial times
Tuesday, 16 September 2008
“Sir, While walking through the pedestrian precinct between St Paul's Underground station and Paternoster Square a few days ago, I was attracted by a notice which read: "Come in and sort out your finances with a financial review", and signed RBS.
At least the Square Mile retains a sense of humour.
Derek Coggrave, London N3, UK”
This comment in the FT September 16 , letters page, made me smile as well. But it does have a serious point.
I also read a comment made by Bonham Carter, CEO Jupiter, on the Lehman events, that it is time for investors to review their portfolios. He pointed out that ..”while the investment environment remains volatile, investors should recognise that it is in these conditions that significant investment opportunities can emerge. “ As such, he sees buying opportunities for those prepared to take a long term view.”
So what do I make of all this?
It is time for investors to review their portfolios. In our experience when reviewing portfolios for new clients, invariably we find there is no real structure. This means they will often get blown like the wind from one crisis to another.
Secondly, there is bias. The sign by RBS above is a typical example. If you have your portfolio managed by a bank, the adviser is paid by the bank. The bank has a responsibility to its shareholders to make profits…in fact, as much a possible. That actually puts investors in conflict with the bank because they also want profit.
The answer to the dilemma is actually simple. Now is the time to review your portfolio, not quick a fix but be prepared to really build a portfolio that stands the test of time.
Then make sure you use an independent adviser, preferably on a fee only basis, to avoid conflicts of interest.
Perhaps then when the next crisis hits our screens and newspapers, knee jerk reactions are not required and more investors can withstand short term events because their portfolio is right for them.
I know I am biased on the basis we give this advice, its what we do...but actually, its not bias, its common sense.
Download our document “We have been able to improve every portfolio we have reviewed. What are you waiting for?”
Categories: Asset Class Management
posted by Murray Round Wealth Management @ 14:50,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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