20/08/14No thanks mate, I’d sooner back a horse!

No thanks mate, I'd sooner back a horse!

‘So, I decide to go a Networking meeting. I’ve read up on the latest news and found an investment fund that has posted growth of 28% in ONE YEAR! It’s regulated, so nothing to worry about, it is a moderate to adventurous fund and eligible under the Financial Services Compensation Scheme (FSCS) if the company folds (which it won’t as the fund is operated by a household name). I’m now ready for the one minute introduction. I’ve rehearsed my spiel and I’m going to blow them away….sweaty palms, heart racing, I’m pumped and ready….”Good evening, my name is________ and I’m an Independent Financial Adviser. I’m delighted to tell you, that I can name an investment fund that has posted a 28% increase in one year and if you want to have a natter, please come and see me” BOOOOOM! I’m well chuffed. There is stunned silence as people nod sagely to eachother. I check my business card stash-(enough) my pens are working…I’m going to get 30 interviews here!

The meeting ends and we retire to the bar to have some more chat…Tumbleweeds…I can’t believe it! no one is giving me the eye, no one wants to even ask me a question! I’m dumbfounded and go home perplexed, confused and amazed.

So next week I go again, a week before the Grand National (our equivalent of the Kentucky Derby or Prix de L’arc de triomphe if you will!) Limp handshakes, no eye contact nothing, I’m clearly surplus to requirements. This time I’m languid. I’m in no hurry, no animation..its my turn ‘ Hi there. As you may know, I enjoy horse racing and I’ve been made aware of a horse in Ireland that is being especially trained, groomed & fed to run in next weeks’ National. I’ll in the bar if you want to have a natter’ Startled faces all around! I’ve blown it methinks. How dare a Financial Adviser recommend such a frivolous and risky investment?

Eight people, Eight bloody people who ignored 28% potential returns last week, meet me in the bar asking for the horses details and what cut do I want if it wins!”

A wonderful story, told to me by an IFA in the last week who shall remain nameless, the same as the Networking group.

Well hello readers and I apologise for my tardiness at organising a Blog. We’ve had a change of computer systems at the office, which didn’t help but to be perfectly frank, its been busy and I’m not complaining!

Isn’t that story great? so true in life generally we can’t wait for anything! from £2 on the Lottery to pre cooked & takeaway food-we just can’t wait and when it comes making a money on our hard earned cash, relevance and common sense fly out the window as we chase that fabulous headline of ‘8% a year guaranteed for 3 years’ even though the e-advert carries no protection statement at all, we are prepared to consider investing.

Yet, when we look under our noses, we can see that some of the big, well established companies that head up the major Financial Indices in the world are paying high single sometimes double digit dividends as the western world finally starts to creep into recovery.

Having a flutter is fine, so long as you know you might lose it all. The same applies to these new investment ideas of investing in Storage companies, Car Parks etc..the vast majority are Unregulated, this means there is no FSCS protection if the company folds. So if you’re going into these schemes, be aware. I have seen one recently where a Solicitor is being used to handle the financial transactions. As such, the solicitor displays accreditations and their financial protection details if they make a mistake. Unfortunately, potential investors are assuming (and the investment company is not saying) that this is protection for them.

Whilst the saying ‘Don’t look a gift horse in the mouth’ is true, ‘All that glitters isn’t necessarily Gold’ is equally true. Have a flutter, take a punt, but go in with your eyes wide open when it comes to Unregulated Investment Schemes and dare I say it? Talk to an Independent Financial Adviser. If you want one, you can go to or check the CII website, or as your reading this…talk to me!!!!!!

Have a wonderful rest of summer, take care & I’ll be back in September

Oh and if you can, listen in to HCR104fm on Monday 15th September, 7-8pm UK time…I am the ‘Money Man’ available online as well


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