Groucho Marx famously said that "A Stockbroker is someone who invests your money until it's all gone". I tend to think something similar about 'Financial Advisers'.
If financial advisers knew so much they would be investing in their own recommendations. Instead of which they charge a client good money, and also take commission on securities purchased. Their remit is to make money from the punters rather than investing themselves in the recommended punts.
I have never had dealings with a financial adviser, but I do know someone who did. Admittedly she was a tad naïve and knew nothing of investing, whilst having a large amount of money to invest. When she mentioned to me that she had arranged a meeting with her financial adviser I nearly fell over backwards.
I knew the sum she had to invest, so I immediately got to finding her something that would have offered good rewards. I found a small period freehold terraced house in S London. It was very attractive, had recently been restored, and was well within her budget. She rejected the idea at once, then some while later visited her advisor.
I'm sure you know what's coming next, and you'd be right. The house would now be worth about £2.5 Million, the monthly rental income would be around £2,500, yet her own choice of investments performed miserably.
By chance I noticed the above article in this week's Sunday Times. In this case the adviser recommended Goldmines and other Offshore Investments all of which failed.
Presumably the person who lost all his money (an ex-footballer) failed to ask his adviser how much money he himself had in the shares he was recommending; something I would advise everyone to do in the future.
I have no need of a financial advisor, but if I ever do need any advice I'd ask my brother. He has his own investments and does okay, so he would never steer me wrong.
ReplyDeleteSounds like a god idea!
DeleteI once had such a consultant that I was always afraid to take his advice, I trusted my intuitions more and I was right.
ReplyDeleteWhat makes a 'Financial Adviser' anyway? There was a famous English pop singer called Adam Faith who suddenly decided to become a financial adviser to the 'stars', and everyone who followed his advice lost everything.
DeleteI retired at the same time as a few of my friends and we were all fortunate enough to be able to draw modest lump sums from our pension savings. Three of my friends used a financial adviser and ended up with some form of investment product that has now decreased in value. I just put mine into a savings account. I tend to be quite conservative with my savings.
ReplyDeleteIt's very easy to lose money, and very difficult to make it back again.
DeleteRental income of £2,500 per month - £30,000 per year - for a small terraced house. So says the man who cannot understand why doctors' salaries need to be so high.
ReplyDeleteIt was a nice little house; one that would almost suit a train driver.
DeleteOh, and by the way, that doctor would still have more than £110,000 to play with after his/her rent. Not to be sniffed at.
DeleteA very senior and experienced 50-year-old consultant. I am still here because of them, and you may need them too one day.
DeleteMy basic point is that property investment has ruined housing for younger people.
DeleteIt's also made many quite well-off; look at Angela Rayner for example.
DeleteShe obviously heeded your advice, Cro. It is good that your know-how is helping to fund the Labour Party. I recognise you as a Socialist at heart.
DeleteProperty, every time.
ReplyDeleteNo question about it, especially here in the UK. But a financial adviser would never suggest it.
DeleteInstinctively, I shirk at the very idea of a "financial adviser" and thus far in my life I have never employed one. I hope that that remains the case forever. The term "parasite" springs to mind.
ReplyDeleteThey simply take part of the money which you wish to invest.
DeleteThen they simply take their fee and simply bugger off.
DeleteYup!
DeleteFinancial "advisers" rate on the same low level as "influencer" on my radar!
ReplyDeleteI was hoping to become an 'influencer' but no-one wanted me.
DeleteI have a similar opinion.
ReplyDeleteIt's logical.
DeleteBuying homes is a great investment. Financial advisor have a self-interest that drives their decisions.
ReplyDeleteOf course, and that interest can never be in advising property purchase.
DeleteRobbie Fowler the ex Liverpool striker owns over eighty houses that he rents out.
ReplyDeleteIf he was earning £millions a month, that's the wisest thing to do with it all.
DeleteOh Cro, not all financial advisers are the same. Some help folk with mortgages etc and help them steer through the sometimes complicated red tape, and save them money with the best deals. They don't all advise on investments and stocks and shares.
ReplyDeleteI was really talking about the private ones who advise on investments. I'm sure a bank or building society would have more experienced people who advise about mortgages, etc.
DeleteI told a good friend of mine she might as well gamble it away as to have an advisor ,advise her.
ReplyDeleteOr to play the stock market which I see as the same ...it is just gambling. :)
I've never lost money on any shares I've owned, but my late father took risks and had a very thick folder of defunct Co certificates. Otherwise he did very well too.
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