Evaluate the Value of Your Financial Adviser During a Crisis
There is no doubt that the past
year has been significantly challenging for us all. Not least for British
expats who are residing in a European country.
With the unique combination of a
global pandemic and the UK’s departure from the EU, having sound, professional
advice to manage your wealth appropriately is bound to have far-reaching
benefits, long into the future.
Here we’ll explore the key
questions you can ask, to assess whether you have received real added value
from your adviser during such a difficult period, and what you can do should
that not be the case.
Identifying
the Benchmark for Outstanding Financial Advice
During an international period
of tremendous change, financial advisory standards become crucial to
stabilising investments and making educated decisions about managing your
portfolio.
Brexit introduces some
fundamental changes, such as:
·
Removing entitlement to exemptions and reduced tax rates
available to EU citizens.
·
Changes to pension overseas transfers and taxation charges.
·
Succession planning strategies and tax liabilities for your
beneficiaries.
These areas can be complex, and
with swiftly changing legislation, and new regulations in multiple nations to
consider, the value of your financial advice is significant.
This is not a time to go it
alone when making long-term decisions, or choosing an investment strategy to
offset any losses due to the economic downturn.
What you shouldn’t be
experiencing is:
·
Radio silence from your adviser during the COVID-19 outbreak.
·
Lack of responses to concerns, queries, or problems.
·
Slow reactions, resulting in the loss of a potential
opportunity.
·
Poor portfolio performance – impacted by any number of existing
situations.
In any of these cases, the first thing to do is evaluate whether the financial advice you are receiving is fit
for purpose.
Building Communication with Your Financial
Adviser During the Pandemic
No doubt, some consultants have
experienced challenges adapting to remote working, liaising digitally with
clients worldwide.
That said, there are many ways
to arrange a discussion if you are concerned about your portfolio performance:
·
Digital communications are possible via video call using
programmes including Skype, Zoom, Teams, and What’s App.
·
Monthly performance reports can be delivered via email, with
video calls or presentations to clarify any critical information.
·
Virtual offices often have the same access to markets, economic
activity and investment platforms, albeit away from a central hub as usual.
Online meetings, reporting and
consultations are all possible, even for financial advisers working with
clients overseas.
While we cannot always meet in person or travel across
borders, your adviser must remain in contact, particularly during a time of
such significant flux that may dramatically change your investment strategy.
Assessing
How Coronavirus Has Impacted Your Portfolio Performance
We’ve published information before
about how to identify ‘hidden’ fees in your portfolio management costs – but
this widespread problem is always worth mentioning.
Millions of expats are currently
looking at damage limitation, complete diversification, or essential product
transfers to protect their assets. During such a time of change, your financial
adviser needs to step up to the plate and make considered decisions, always
based on your portfolio aspirations and risk appetite.
To achieve the best outcomes you
require:
·
Expedited action and fast decision-making.
·
Updated knowledge of new regulations and rules.
·
Consistent communication to align your portfolio with your
plans.
·
Cost-effective advice that delivers value for money.
Behind all of those key
requirements, and crucial expectations from your financial adviser
also sits the question of fee transparency.
Of course, not all advice is
created equal. Choosing the best wealth management team with substantial
experience managing finances for clients with similar situations is worth far
more than lower-cost advice that is not specific to your needs.
Hidden costs are still a critical concern for wealth management professionals, and back in 2017 it was identified
that of survey respondents:
·
28% did not consider the fees when deciding which investment
accounts to select.
·
31% were unsure if their financial advisers were legally
obligated to act in their best interests.
·
32% felt that higher fees would result in higher returns.
·
21% did not know what they were paying in investment charges.
·
10% could not say whether they pay any fees on investment
accounts.
·
45% of respondents who did not seek independent advice did so
because of a lack of trust.
These figures may be startling,
but demonstrate the underlying problem with hidden charges, lack of clarity on
fee structures, and variances throughout the expat financial advice industry between when, and how much,
professionals charge.
Solving
Wealth Management Challenges Post-Brexit
As ever, there is no ‘one size
fits all’ approach, and the right decisions for your portfolio are entirely
dependent on your risk exposure, key priorities, and financial stability.
Some of the popular options
currently available include:
·
Establishing a ‘rainy day fund’ as a contingency and investment
reserve pot to guard against a protracted recovery from the pandemic.
·
Opting for longer-term, stable investments until trading returns
to normal conditions.
·
Avoiding attempts to time the markets given current volatility,
and instead of taking more risk-averse decisions with robust strategies.
·
Working on budget planning in sufficient detail to assess the
value of retirement investments and identifying ways to provide for any gaps.
·
Putting in place greater cover for unexpected situations,
including products such as ill-health, critical illness, and life cover.
·
Restructuring succession planning, particularly for expats
living in Europe and affected by new overseas taxes or allowances.
If you are in any doubt as to
whether you are paying appropriate fees, or have been left in limbo during the
pandemic without regular performance updates, it may well be time to consider a
change.
The Chase Buchanan teams across the
UK, Europe, America, and Canada offer a free portfolio review and cost analysis
service, designed to shed light on your payable fees, and whether they
represent good value. Get in touch to arrange a convenient time for a call to
discuss your circumstances, and get your wealth and assets back under firm
control.
Original source
:- https://chasebuchanan.com/value-of-your-financial-adviser/
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