Set the price for your financial advice!

Direct Investors lose 50% of money invested in 2008

2009-02-05T07:19:00.000-08:00

According to Hargreaves Landsdown investors who put their own cash to work last year lost around 50% of the money invested. Typical funds were JPM Natural Resources, Allianz BRICS and Neptune Russia, which have been amazing performers in last 5 years or so.It seems that direct clients choose aggressive funds and go for that "hit it out of the ball park" returns. There seems to be little evidence of any tactical asset allocation or model followed, just what is either a best-seller (herd mentality) or what is best performing funds (greed).Now, this would be an obvious thing for me to say but it shows that having in-depth discussions with clients about time horizon, asset allocation, attitude to loss etc would be useful so better decisions can be made.You may still be invested in the named funds, but I would bet that would not be only area you would have exposure to and could help minimise future or further losses.

Redundancy! 4 weeks survival

2009-01-13T02:52:00.000-08:00

Couples voice concern over UK economyOne in five couples could not survive beyond four weeks if redundancy were to hit .

Key statistics

Women
Almost a third of women (30pc) are concerned that their partner may be made redundant in 2009, rising to 41pc of women aged 25 - 34
55pc of women would not feel financially secure if their partner were to lose their job
The most insecure age group is the 35 - 44 year olds, with 60pc of women saying that they would feel financially insecure if the relationship were to collapse
More than one in ten women (11pc) say that they could not survive beyond one week if their partner were to lose their job

Couples
Almost one in five couples (17pc) say that they could not survive financially beyond one month if one of them were to lose their job
26pc of couples have no savings at all
Couples who are over 55 are the most financially secure age group with 15pc able to survive indefinitely on their savings, if one of them were to lose their job
UK adults have voiced their fears over the UK economy according to independent research commissioned by credit report provider www.callcreditcheck.com, with almost one in five couples (17pc) saying that they could not survive financially beyond one month if one of them were to lose their job. Fears over redundancy and saving levels appear to be highest among women aged 25 - 34 years of age, with one in four saying they would be unable to cope financially beyond one month if their partner was made redundant.
With almost one third of women (30pc) and one in five men concerned that their partner may lose their job in 2009, financial stress can cause real problems for couples and can even lead to a breakdown of the relationship. Just over half of all women (55pc) say that splitting up with their partner would leave them feeling financially vulnerable, a sentiment echoed by 49pc of men. The most concerned group appears to be women aged 35 to 44 years, with 60pc saying that they would feel financially insecure if their relationship were to collapse.
"Arguments over money can cause real problems in a relationship and 2009 is set to be a very difficult year for many couples, especially those faced with the threat of redundancy, along with rising bills and remortgage worries," comments Owen Roberts, head of www.callcreditcheck.com. "Our advice to anyone who is struggling with debt repayments, whether single or in a couple is to speak with their lenders before things become unmanageable or contact an independent organisation such as the Consumer Credit Counselling Service to work out the best way forward."

Callcredit's tips to beat the credit crunch
Set your budget and stick to it. Make sure you can realistically afford what you spend
Don't go too mad on payday. Having too much month at the end of your money is never an enjoyable experience!
If you do go shopping try using cash, it will highlight just how much you're spending
Do your homework. Use price comparison sites to make sure you're getting the best deals out there
Check your credit report at www.callcreditcheck.com - a snapshot of all your financial commitments will show you where you can improve your credit rating and save money

Research information
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1962 adults, screened to focus on couples who were married or living together. Fieldwork was undertaken between 23rd - 29th December 2008. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

Why Money Diets/ Credit Crunch diets do not work!

2009-01-06T03:34:00.000-08:00

A deluge of newspaper "experts" have recently penned their opinions and ways to either beat the credit crunch (impossible almost), be better with your money in 2009 and so on and so forth. I have even written some of these articles in previous run-ups to the new year and I can honestly say they are a waste of time and simply fill up column inches.In order for there to be a change in your behaviour several things need to be present. The most important being you want to change. You do not blame others, the credit crunch, the Government or subprime bonds. You take responsibility for yourself and own actions as that is all you can control.You need to change your attitude not just now, or for the month of January but your life has to change and this is where most people will fall down. More often than not in life something needs to be sacrificed in order to achieve (look at sport as an example. Tiger Woods has made huge sacrifices in his life ever since he was 5 or 6 in terms of not playing or drinking with friends but being totally committed to the achievement and it has paid off large style but it was 15-20 years of hard work and it still has not stopped). In order to healthy you have to be health-conscious right? What do you have to do to become wealthy if that is your goal? Yes, wealth or money conscious!Making sacrifices is something we are maybe not as good at as we think we are. The live for today attitude and instant gratification required by most puts a dampener on breaking out of the norm. BUT, if the sacrifices now are smaller than the big achievement waiting for us, what else stops us from taking constant action to get to the target?

Fear!

We saw fear in markets a lot last year and again we will see it this year although I think a little more controlled.Fear is so strong and particularly pronounced when we have a multiple of people who are fearful. We are afraid of failure, some of success. We have been framed since we were young that it is NOT OKAY TO MAKE MISTAKES. I would say that my best learning experiences have come from mistakes and although sometimes costly in terms of money, time, energy I would not trade them as I know they will save me from bigger future mistakes as I have a false sense of confidence if I go through life thinking I am invincible or think I know more than I really do.So, ignore the money experts in newspapers. Figure out what you want, what you really want (cue Spice Girls) and what price you are willing to pay to get there. Is it a time sacrifice or another type? Construct a list of pro's versus con's and see which wins?Once you know what you want, what you have to do to get there and you've made the mental transition to change your old behaviour you must do one more thing...........DO IT!

Do not give up at first or second hurdles as this again will separate you from others, perseverance is absolutely the key in success. Celebrate mini successes to make the journey seem worthwhile and enjoy it.

I wish you well for your best financial year everAdrian

Limited offer for 2009

2008-12-23T01:44:00.000-08:00

I have launched a special "club" for 2009 which allows potential clients to set the price for what they wish to pay me for one year's service.The process is this: get in touch either via my website www.unleashadvice.co.uk/adriankidd or here on Ecademy and I will meet with you to see where and how I can help you and I will tell you all about what I can and will do for you. We can both agree on what you feel is necessary and how YOU wish to be serviced etc. It could be weekend meetings, helping teach your kids finance, cash flow analysis, investment ideas, being accountable and having someone as your sounding board, coaching you......whatever it is you think you need and what I think you need, all wrapped up into a service proposition designed by you. Complete continuity and peace of mind that I am always going to be there.So, get in touch and make 2009 different to before. So far this week (since my idea) I have had 3 people sign their special agreements and very much look forward to working with them next year.Why am I doing this?I am fed up of hearing about people either not happy with the service from their old adviser or the poor advice being given in banks and the unreasonable charges some people are getting consumers to pay who do not know any better. In an era of Treating Clients Fairly, what could be more fair than letting you select the price you deem suitable? No arguements and easy access to what some people believe is a lot of money anyway. I want to help shape a better industry and help people achieve what it is they want to.

Let us take that journney together!

Merry Christmas and have an outstanding 2009.Adrian