So Why Does a Money Blogger Need a Personal Financial Adviser?
…that’s the question I was asked recently by a Pounds and Sense reader after I mentioned in this blog post that I had a financial adviser.
Of course I replied to her directly at the time, but on reflection I thought it would be good to provide a more in-depth answer to this question on the blog.
To recap, my financial adviser is called Mike and he works for a company called Integrity Wealth Solutions. I was recommended to Mike by my accountant, and he has been advising me for over three years now.
Mike actually looks after about half of my portfolio. He advised me about this initially and set up the recommended investments on my behalf, making maximum use of my tax-free allowances. He continues to monitor my investments and makes any recommendations for adjustments as required. I see Mike once a year in person to review how things are going (both with the investments and me personally). But of course, I can also speak to him by phone (or email) any time if required.
The other half of my portfolio I look after myself, and it is fair to say it is well diversified! As regular readers of PAS will know, I have investments in property crowdfunding, P2P lending, the robo advisory platform Nutmeg, and various others.
Why then do I need Mike? Here are just some of the reasons…
1. Mike is a trained and experienced independent financial adviser/planner who works full-time in this field. I am a money blogger and obviously have a special interest in financial matters, but I have no professional training or direct work experience in this field. I can ask Mike for his professional opinion on any investment-related matters, and while I am not obliged to follow his advice I do of course take it very seriously.
2. Mike has a backup team in his office and access to specialist investment research services and software. He uses these resources to inform his advice, and also to provide in-depth reports (with snazzy-looking charts and spreadsheets!) regarding how my investments are performing.
3. As a regulated financial adviser, Mike has to follow all the correct protocols and ensure that all advice he gives follows best professional practice and is appropriate for my needs and circumstances. He cannot cut corners, invest on a whim or hunch, or let himself be distracted by the latest ‘bright shiny object’ in the investment world. I have to admit that I have been guilty of all of these things myself in the past!
4. As a professional financial adviser Mike also has access to certain investment opportunities or platforms that are not easily accessible to the general public. I won’t go into detail about this here, but it is certainly something I have had occasion to be grateful for in the current coronavirus outbreak.
5. Mike is able to provide personalized but objective advice about my finances, based on information I give him. Money and investment can be emotive subjects, and it’s great to have a sympathetic – but at the same time sensible and detached – professional advising you. I am sure Mike sometimes sighs inwardly at some of my more exotic investments, but he is always interested in what I have been doing with ‘my’ half of my portfolio and happy to offer his thoughts as appropriate.
Are there any drawbacks to having an adviser? Well, of course, you have to pay them! In the case of Mike I paid an up-front fee initially and now pay a small monthly commission. Hand on heart I can say that Mike is well worth his fee, and even in the current exceptional circumstances his charges have been more than covered by the amount by which my investments have grown.
So that is why I have a personal financial adviser. If you are fortunate enough to have money to invest, I strongly recommend you consider engaging one too.
If you would like to find out more about the service offered by Mike and his colleagues at Integrity Wealth Solutions, you can check out their website and contact them on 02476 388 911, or email them at advice@integritywealth.co.uk. They are friendly and not at all pushy, and will be delighted to talk you through the service they offer without obligation. If you do get in touch, please mention that you were recommended by Nick Daws of Pounds and Sense blog. If you end up becoming a client they have said that they will pay me a small fee to say thanks. This will help to cover my costs and ensure I am able to go on sharing tips and advice to Pounds and Sense readers.
As always, if you have any comments or questions about this post, just let me know.
March 27, 2020 @ 10:56 am
I think it’s a good idea that you have a personal financial advisor. Not only to assist you with your monies but to aid you to help others too.
March 27, 2020 @ 11:06 am
Thanks for the comment. Yes, a good financial adviser will take into account your family circumstances and advise accordingly.
March 27, 2020 @ 11:21 am
I found this fascinating and whilst we use financial advisers at work for our stocks and shares portfolio, it is such a good read to see how and why other people have them and who they use to get the advice!
March 27, 2020 @ 11:25 am
Thanks for your comment. I am glad you found my post interesting. I think most people who have money to invest will benefit from speaking to a professional financial adviser, even if they consider themselves reasonably money savvy.
May 29, 2020 @ 10:19 pm
I used to use financial advisors until I learned how easy it is to become one and from first hand experience, how FA’s don’t always act in the best interest of their clients but rather in the best interest of what actively managed unit trusts funds are paying them the highest annual commissions. Once I learned how to passive invest in index trackers 15 years ago, my returns have been much higher than when I used an FA and I’ve never looked back.
May 30, 2020 @ 9:32 am
Thanks for the comment, Mark. I am glad you are getting good results from investing in passive index trackers. I agree that commission-based advice can be suspect, but advisers haven’t actually been allowed to offer advice on this basis since 2013 for pensions or other investments. I pay my adviser a fee and consider it well worth it for the returns his recommendations have achieved, but obviously everyone will have their own views about this.