Author: Rob Bowers

As you may know, the Blue Wealth team love a round of golf. Perhaps you’ve even been to one of our hugely popular annual golf days in Bristol?

Golf is a wonderfully relaxing and enjoyable sport that allows you to spend time outdoors and boost your daily step count.

What’s more, you might be surprised to learn that there are many parallels between playing golf and planning your finances.

Both require patience, commitment, and the ability to overcome challenges to keep moving towards your goals.

So, read on to discover five invaluable lessons golf can teach you about planning for your financial future.

1. Play your own game

One of the things we love most about playing golf is the opportunity to spend time with friends, colleagues, and valued clients.

Yet, the aim of the sport is to get the ball from the tee into the hole, and the only way to do this is to focus on your own game.

If everyone around you is offering their “expert” advice, it might be hard to tune this out – especially if you’re a beginner. Yet, what works for others may not work for you. Every player has a different set of skills and unique personal goals.

While you can certainly learn from watching great players, trying to imitate them rather than playing your own game could lead to problems.

Investing is no different. Your friend’s “hot” stock tip might be ideal for them, but it may not fit with your tolerance for risk. Likewise, following the herd and chasing the latest investment trend, could hamper your progress towards your long-term goals.

Put simply, your financial situation and aspirations are unique to you, so your financial plan needs to be too.

2. One hole does not decide the round

Golf is not a quick game. With four players, a round typically takes around four to five hours on an 18-hole course.

That means there’s plenty of time to recover from a bogey, or to fall from grace after a birdie!

Indeed, you’ll likely have peaks and troughs in your playing career, and often within a single round. The key is to focus on your overall score.

Similarly, one financial gain or loss is unlikely to seal your financial future. So, focusing on your long-term goals could help you bounce back from any financial bogeys and capitalise on the birdies.

3. There’s a club for every situation

Imagine playing a round of golf with just one club. Even Tiger Woods would probably struggle to give his best performance.

That’s because there’s a club for every situation. You’d select a different club on a par three than you would a par five, because your goals and approach to the specific challenge would be different.

Likewise, you might be stuck if you don’t have a sand wedge to hand if your ball lands in a bunker.

When it comes to investing, think of your assets as golf clubs. Different asset classes are likely to perform differently at various times. Some may fall in value while others make gains.

So, a diversified investment portfolio that includes a range of asset classes from different sectors and geographical regions, could help you progress towards your investment goals. In contrast, relying on a single asset class could leave you vulnerable to sudden downturns in the market.

It’s why you have a bag full of different clubs!

4. Don’t let external factors blow you off course

There could be many unpredictable factors that affect your golf game, from bad weather to a poorly maintained course.

This might be frustrating. You may even feel like packing up your clubs and heading home. But, if you only play when the conditions are perfect, your time on the golf course may be very limited and your progress will probably be fairly slow.

The only way to reach the 19th hole, and continue improving your skills, is to tune out any distractions and play on.

The same is true of financial planning. It’s impossible to predict or control all the factors that could affect your financial situation – the government may change tax legislation in the next Budget, the markets could dip, and so on.

While reviewing your plans after any significant life events could help you keep your financial plan on track, tuning out the “noise” of external factors and focusing on your long-term goals, is often the most beneficial approach.

5. A coach could be a valuable investment

Of course, it’s entirely possible to learn to play golf on your own. However, it’s likely to be much more challenging, a lot less enjoyable, and it could take you a long time to progress to the level of play you want to achieve.

On the other hand, a coach can provide valuable support and guidance. They will help you avoid forming bad habits, boost your confidence, and deliver results much more quickly than if you were left to your own devices.

Whether you’re a beginner or an advanced player, an experienced coach can quickly assess your playing style and identify areas for improvement.

As financial experts, the Blue Wealth team can do just the same for you and your finances.

We can review your financial situation and work with you to build a strategy that helps you achieve your goals. If you hit a hazard, we can help you reassess and readjust your plan.

As an independent firm, we can create a financial plan that is specifically tailored to your needs, helping you to achieve more financial birdies and fewer bogeys.

If you’d like to find out more about how we can help you up your financial planning game, we’d love to hear from you. Please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

Retirement on your terms is likely to be one of the key elements of your financial plan.

So, as you approach or reach retirement, now is the time for you to start thinking about enjoying a comfortable life when you stop working.

Many people see retirement as the start of their “second life” – the time when you have the chance to do all the things you want to do. You may have been planning this moment for many decades and have grand plans for what you might like to do in the years ahead.

If you haven’t already done so, now is also the time to start thinking about your income in retirement, and how long it may need to last.

Aside from taking all your fund in one go – or not taking it at all and leaving it to pass to your heirs – there are four main options:

• Buy an income for a fixed period or for life, known as an “annuity”.
• Take an adjustable income, known as “flexi-access drawdown” (or sometimes just “drawdown”).
• Take lump sums from your pension fund, sometimes known as “uncrystallised funds pension lump sums” (UFPLS).
• Mix and match different options.

This useful guide explains the advantages and disadvantages of each option, as well as some other areas you might want to consider when planning for retirement.

Download your copy of ‘Your retirement choices: How to generate an income in later life’ to find out more now.

If you’d like to talk about your retirement plan, please contact us to arrange a meeting.

September marks the start of a new school term for some of the team’s children. We also bid farewell to a much-valued member of the Blue Wealth family, as Naomi moves on to pastures new.

What’s more, we have an exciting new event to tell you about.

Read on to find out more…

Rob and Dan wave their children off to school after the long summer holiday

The start of a new school year can be an exciting time for parents and children alike. In September, both Rob and Dan watched their children return to school with mixed emotions.

Rob’s children couldn’t wait to meet their new teachers

Rob’s six- and nine-year-old entered years two and five in September.

While Rob has loved spending time with the family during the summer holidays, he was quite relieved to see them return to school!

Both children have new teachers this year, so they walked through the school gates with a healthy mix of anticipation and excitement. They were also thrilled to be reunited with their friends.

Rob is looking forward to seeing his two little ones grow and develop over the next school year. They surprise him every week with how much they’re learning and questioning everything!

For Rob, school feels like a lifetime ago. His fondest memories were playing football in the playground and learning about interesting topics, such as the Egyptians. He can still recall a lot of his primary school lessons to this day and hopes his children get as much out of their time at school as he did.

Dan’s children couldn’t wait to be reunited with their friends

This month, Dan’s children joined year one and year five. His nine-year-old daughter and five-year-old son were excited to see their friends after the long summer break.

While Dan and Sarah were keen to return to their term-time routine, they were reminded how time-consuming and exhausting all the organisation and school admin can be!

However, they’re getting excited about the school year ahead. The infant nativity and the various sporting events the children take part in, such as a cross country run and sports day, are already causing much excitement in the Britton household.

Dan has fond memories of his time at primary school. He loved running around on the huge playing fields and sports day was his favourite event of the year. So, he’s looking forward to seeing his children take part in the school’s sports events throughout the year.

We bid farewell and best wishes to Naomi

While September is a time of new beginnings for some of the team’s children, it’s also the month we say goodbye to Naomi Davidson.

Naomi joined us in 2022 and completed her training as a paraplanner during her time with us. She said, “I had a fantastic time working at Blue Wealth and the team has really supported my career development.”

We’re always sorry to see members of our team move on, but we wish Naomi all the best for the future, and we know she’ll excel in her next role.

Save the date for your next Blue Wealth social event!

We’re excited to announce our next Blue Wealth social.

We’ll be holding a wine tasting at Averys wine cellar in Bristol on Wednesday 27 November. This will be a great opportunity for clients and partners to enjoy an evening of lovely food and wine in excellent company.

We’ll send out an email with more details in the near future. If you’re interested in coming along, keep your eye out as places will be limited!

Ahead of the 2024 general election, one of Labour’s most eye-catching manifesto pledges was to add VAT to private school fees.

Set to come into effect on 1 January 2025 – subject to a High Court legal challenge – the BBC reports that this could raise £1.6 billion a year in revenue, enabling Labour to hire 6,500 more teachers at state schools.

The policy comes at a time when school fees have already been increasing sharply. The Institute for Fiscal Studies (IFS) reports that the average cost of private school fees has risen by 20% in real terms since 2010, and by 55% since 2003, even without VAT.

While some famous schools like Eton and Harrow charge about £50,000 a year, the average across the UK is about £15,000.

If you have a grandchild at a private school, or you’re looking to help their parents to fund a private education, there are several tax-efficient options available to you. Read on to find out more.

Use your Inheritance Tax gifting allowance

In the 2024/25 tax year, you can usually pass up to £325,000 on your death without Inheritance Tax (IHT) being due. This threshold can increase by £175,000 if you leave your main residence to a direct descendant such as a child or grandchild.

If you’re married or in a civil partnership, you are normally able to transfer any unused allowance, meaning you could leave up to £1 million before IHT is due.

If this may be a concern for you, making gifts – for example, to pay for school fees – can help you mitigate any potential liability.

Each individual has an annual gift exemption of £3,000. Gifting this amount means the sum falls outside your estate for IHT purposes. You can carry forward the exemption for one year if previously unused.

So, two grandparents using their exemptions for the first time can gift £12,000 in total initially, and £6,000 in each subsequent year.

Make a potentially exempt transfer

Gifts that you make above your annual gift exemption will usually fall outside your estate providing you live for seven years after making them. This is known as a “potentially exempt transfer” (PET).

Planning early can help you to make use of this exemption.

For example, if you made a gift of as large a sum as possible (to pay several years’ school fees) you would start the seven-year clock running on the gift. This increases the chances that the gift will not be subject to IHT.

If you could gift sufficient funds to pay for the entirety of a child’s education, this could be invested so only the required sum is drawn down each year to fund the liability as it arises.

Gift from income

If you have a significant income, you may be able to use a further, powerful IHT relief.

The “normal expenditure out of income” exemption means that you can provide regular gifts, such as to pay for school fees, provided they:

• Come from income and not capital
• Do not affect your standard of living
• Are regular.

Any gift from surplus income that satisfies these requirements passes immediately out of your estate without you having to survive for seven years.

It’s important to maintain comprehensive records of income, expenditure, and gifts each year to claim this relief.

Trusts

A trust is created by a “settlor” who settles assets into the trust. These assets typically comprise property, cash, shares and so on (this would likely be cash if you are considering funding school fees).

The assets are held and managed by the “trustees” – these will typically be the child’s parents, but you could also be a trustee to retain some control over the use of funds – for the benefit of the “beneficiaries” (your grandchildren).

Bare trust

As your grandchild cannot have funds in their own name when under the age of 18, a bare trust holds assets in the name of the trustees for the grandchild’s benefit. The funds would have to be spent for that grandchild’s benefit or invested for them.

If the sum is large enough, the trustees could invest the funds and draw down each year to pay the school fees. If there was a balance left over upon completion of education, that would belong to the grandchild.

Discretionary trust

A bare trust doesn’t work if you want to set aside funds for future grandchildren or you seek flexibility as to how to provide for a group of grandchildren.

A discretionary trust is a “pot” of assets managed by trustees (that you appoint) for the benefit of the trust beneficiaries (in this case, your grandchildren).

The trustees decide how the funds should be invested and used for the benefit of those beneficiaries. Such a trust would normally be accompanied by a “letter of wishes” from the settlor (you) setting out how you would like the trust to be used.

The disadvantages of a discretionary trust are that there are costs for setting it up and running it, and the tax position is more complex.

For example, in almost all cases you are restricted to putting £325,000 into a trust. If you transfer into trust more than your available IHT nil-rate band, an immediate 20% charge arises on the balance.

Moreover, during the lifetime of the trust, there are potential charges to IHT every 10 years, at a maximum rate of 6%.

As trusts are a complex area, seeking professional advice can add value.

Finally: think about your future needs

There’s one final point to consider here, and that’s your own future financial needs.

For example, even if you are comfortable that you can provide financial support now, what would happen if you needed to fund expensive nursing care in future?

Before rushing into providing help, it’s important to review your financial position and be confident you can afford to maintain what could be a 15-year commitment.

A financial planner can help here. Using sophisticated cashflow modelling, they can establish your current and future financial position and consider the impact of any immediate or regular gifts you want to make.

This can help you to understand whether the gifts are affordable and give you the confidence to assist with school fees, safe in the knowledge your own financial position is secure.

If you’d like to explore whether helping with private school fees is an option for you, get in touch. Please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

The Financial Conduct Authority does not regulate estate planning, cashflow planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.

Throughout 2024, Blue Wealth has been supporting Mothers for Mothers through quarterly donations and their annual charity golf day, which was held at Bristol and Clifton Golf Club in April.

We are delighted to have raised a fantastic £1,700 so far.

We know this will make a huge difference to their work offering maternal mental health and wellbeing support, advice, and information to women and their families in Bristol, North Somerset and South Gloucestershire.

Everyone at Mothers for Mothers has a lived experience of depression, anxiety and isolation during pregnancy or after the birth of one or more of their babies. They understand how hard early parenthood can feel and how difficult it can be to ask for help.

Between 10% and 20% of women develop a mental illness during pregnancy or within the first year after having a baby. In the financial year 2023/24 Mothers for Mothers supported an average of 39 new clients each month. In the first quarter of 2024/25, they have seen an average of 49 new clients, an increase of 25%.

With so many women experiencing maternal mental health issues, the need for Mothers for Mothers services will continue to grow. With the right help and support, women can recover from these illnesses. But they can only do it with the support of our local communities, which is why we are thrilled to be able to help in this way.

Laura Ward, vice chair of the charity says: “Mothers for Mothers is delighted to be supported by Blue Wealth. Such recognition is vital to our work with families whose lives have been affected by maternal mental health and emotional wellbeing needs.

“For us and for the families we work with, it means so much to be held and supported by a local business. Not only does this allow us to fund our work, but it also raises awareness of our lifesaving services and helps us to reduce the stigma associated with maternal mental health.

“We would like to extend our thanks to everyone at Blue Wealth and we look forward to sharing our future work and progress with you.”

Look out for future Blue Wealth updates to keep up to date with our fundraising efforts.

The film Thelma – currently showing in cinemas – is a comedy-drama that tells the story of a 93-year-old woman who loses $10,000 to a phone scammer pretending to be her grandson. Outraged by this deception, Thelma sets off on her motorised scooter to track down the crooks and reclaim her money.

Sadly, such tales are not limited to the world of fiction.

According to data reported by PensionsAge, since the beginning of 2020, more than £2.6 billion has been lost to investment scams.

During the same period, the research revealed that pension liberation fraud – when someone convinces you to access your pension pot before the age of 55 – affected almost 1,500 people and cost £19 million.

If you want to know how to protect yourself from pension and investment scams, read on to discover the red flags to look for and learn how to keep your wealth safe from fraudsters.

Knowing how to spot a financial scam could help you protect your wealth

Anyone could fall prey to a financial scam, no matter how financially savvy they are.

Scammers often come across as convincingly professional. Plus, over the years they have developed increasingly sophisticated techniques to persuade their victims to part with their money.

So, it’s important to learn how to spot the warning signs.

Had Thelma been more aware of how financial fraudsters operate, she might not have fallen for the scam about her grandson and saved herself a treacherous journey across LA!

The following red flags could help you identify suspicious activity and avoid becoming a victim of financial fraud.

Pension scams aim to persuade you to transfer your entire pension savings or release funds from it

The following red flags have been identified by The Pensions Regulator as warning signs of a scam:

• Cold-calling – The former Conservative government introduced a pensions cold-calling ban, which came into effect in January 2019. So, anyone who makes an unsolicited phone call to you regarding your pension is breaking the law and is most likely a scammer.
• Using key phrases – If someone tries to persuade you that they can help you with “pension liberation”, obtaining a “savings advance”, or taking advantage of a ”loophole”, you might be wise to walk away.
• Offering early access to your pension – An offer to help you gain access to your pension before the normal minimum pension age of 55 (57 from 6 April 2028), with no tax liability. Generally, this is only possible in special circumstances, such as if you’re suffering from ill health or have a protected pension age.
• Hard-sell tactics – Many scammers will try to pressure you into a decision by telling you their offer is only available for a limited time. Or, they might play on your emotions, just as the phone scammer duped Thelma by pretending to be her beloved grandson and begging for help.
• Guarantees of incredible returns – Fraudsters may try to tempt you to hand over your money by promising that they can offer better returns than your current pension provider.
• Unusual high-risk investments – Investments such as renewable energy bonds and forestry are often overseas. This could make it hard to trace ownership of the investment or even to verify that it exists.

Investment scams aim to get you to hand over your money

Investment scams come in all shapes and sizes, from promoting an opportunity that doesn’t exist to cloning the website of a legitimate company.

Any of the following red flags should set alarm bells ringing.

• Unsolicited contact – Legitimate investment firms won’t typically contact you out of the blue to offer an opportunity. So, if you receive a “cold” email, phone call, text message, or even a knock at your door, treat this as a significant red flag.
• Guarantees of high returns and low risk – Generally, the potential for higher investment returns increases in line with the level of risk. What’s more, returns cannot be “guaranteed”. If something seems too good to be true, there’s a good chance it is.
• Being forced to make a quick decision – A favoured tactic of scammers is to make you feel that if you don’t snap up their offer immediately, you’ll miss out. Legitimate investment firms are unlikely to pressure you in this way.
• Questionable contact details – Thelma is caught out by a scammer who asks her to send $10,000 in cash to a PO Box. If the only way to get in touch with a company is by writing to a PO Box address or ringing a mobile phone number, this could be a reason for caution.
• The company is not registered with the Financial Conduct Authority (FCA) – The FCA’s website lists all registered providers of financial services. It also has a Warning List of firms that may be operating without permission. If the FCA doesn’t recognise a company, it may be best to steer clear of it.

4 smart ways to protect yourself from financial fraudsters

While financial scams have become more sophisticated as technology has advanced in recent years, there are steps you could take to protect your wealth.

1. Research new opportunities thoroughly

Scammers often appear professional and knowledgeable. They can also be extremely charismatic and persuasive.

Thelma is quickly taken in by the phone scammer posing as her grandson and rushes to hand over her money. Had she checked that the caller was legitimate before parting with her cash, she could have avoided the scam.

Before committing to a new opportunity, check that the company has the contact information you’d expect, look for customer reviews, and search for any scam reports online.

2. Don’t rush a decision

If you feel pressured to make a decision fast, take a step back.

An amazing pension or investment opportunity may feel hard to resist and the fear of missing out can be powerful.

However, a genuine opportunity is unlikely to disappear overnight. So, take the time to research the opportunity and seek advice before making any financial commitment.

3. Use the FCA’s free online tools and registers for identifying scams

The FCA’s ScamSmart Investment Checker is an excellent place to start your research.

This is a free online tool for verifying investment and pension opportunities. It’s quick and easy to use, and it could help you avoid falling victim to a financial scam.

4. Speak to a financial planner

If you’re uncertain about a pension or investment opportunity, seeking independent financial advice from an FCA-regulated firm could give you the confidence to proceed or help you avoid a scam.

It’s also crucial to report any suspected fraud to prevent scammers from targeting other people. In England, Northern Ireland, and Wales, you can report any concerns to Action Fraud using the online reporting tool. If you live in Scotland, you should call Police Scotland or Advice Direct Scotland.

Get in touch

If you’re concerned about financial fraud and would like to learn more about how to protect your wealth, we can help. Please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Even for professional investors, consistently delivering above-average market returns on investments is challenging. Those who have delivered high returns over a long time frame are remembered among the world’s greatest investors.

While you may not have the same resources that a professional investor may have at their disposal, you could learn valuable lessons from their work. Renowned investors might have unique philosophies and strategies, and sometimes they share their market wisdom.

This useful guide covers some practical lessons you can learn, including:

• Learn the value of investing from Warren Buffett
• Take the time to understand your investments like Peter Lynch
• Be prepared for the ups and downs of the investment market like John Templeton
• Embrace diversification like Thomas Rowe Price Jr
• Include a margin of safety like Benjamin Graham.

Download your copy of ‘5 insightful lessons you could learn from the world’s most successful investors’ now to discover investment lessons that could guide your decisions.

If you’d like to talk to us about your investment portfolio, please get in touch.

What makes an Olympian? Natural talent or the hours put into training might be the first things that come to mind. However, their approach and mindset play an important role in their achievements too. 

An athlete’s mentality will have a huge effect on how they pursue goals and their ability to perform well when it matters most. Getting in the right frame of mind for success could mean the difference between making the Olympic team and missing out. 

With Paris hosting the Olympics in 2024, now is the perfect time to look at what you could learn from Olympians when it comes to managing your finances effectively, such as:

• Being goal-oriented
• Breaking down your performance
• Keeping your emotions in check
• Working with professionals. 

Download your copy of ‘How an Olympic mindset could help you manage your finances effectively’ to discover how you could benefit from adopting an Olympic mindset.   

If you’d like to talk to us about your financial plan, please get in touch. 

This month, both Adrian Thorley and Rob Bowers are celebrating significant career anniversaries.

On 16 July, Adrian will have been working in financial services for 40 years. Shortly after this, on 31 August, Rob Bowers will reach his silver anniversary (25 years).

Read on to find out about how Rob’s and Adrian’s careers have developed and discover what plans they have for the future.

Rob Bowers celebrates 25 years working in financial services in August

How did you start your career in financial services?

“Accidentally! I took a year out before reading leisure marketing at university and got a job at Halifax Business Centre. They offered me an opportunity to study while working and I moved internally to Clerical Medical offering life assurance and pension advice.

“The rest, as they say, is history!”

Tell us about your time at Blue Wealth.

“It started out as just me in the back bedroom! Then, I took a small office and Nathan came on board shortly after.

“Growth has been mainly organic since then. We didn’t set out to shoot the lights out or become a huge business, we just want to offer great financial planning to clients over the long term. I think it’s worked so far!”

How has the profession changed during your career?

“Immeasurably. When I started financial ‘advice’ was very much product-led. We earned commission from product providers and ‘planning’ was very much a biproduct that was given away for free while we tried to advise on (sell) products.

“Financial ‘planning’ nowadays is much more client-led and goals-based. The products are simply our tools to achieve those goals. It’s very much shifting from being an industry to a profession.”

What has been your proudest career achievement?

“Building Blue Wealth to where it is now, without doubt. You only ever realise how far you’ve come when you stop and look back at where you were.

“We’ve got a great team, great clients and it’s a great business to be part of.”

What developments are you excited about seeing in your career and the profession in the future?

“Industry-wide, I think there is still a long way to go in terms of professionalism.

“We are far from trailblazers, but I do think we are ahead of most advice firms in terms of how we deliver high-quality advice.

“AI is a hot topic at the moment and while I think it can and will help advice firms in the back office, I’m still very much in the camp that it won’t replace good quality, professional advice delivered by real people.”

“Also, I’d like to say a heartfelt thank you to everybody I’ve encountered along the way – colleagues, industry contacts, and especially clients.

“It’s been a fun ride so far and there’s plenty of time to still go until I catch up with Adrian’s 40-year streak!”

What advice would you give to someone entering the profession today?

“Don’t get pigeonholed. Try and be in an environment where you can see as much of the industry as possible and absorb everything.

“I’ve worked with some great people in this industry as well as those who didn’t quite set the bar as high. It’s all a valuable learning experience. In time, you’ll shape your own standards, ethics, ways of working, and communicating.”

Adrian Thorley celebrates 40 years working in financial services in July

How did you start your career in financial services?

“I drifted into it, despite having been determined not to at first.

“I went to a school where it was expected that you went on to university, but I didn’t want to. My parents wanted me to join a bank, as they thought that was a job for life (it was 1984)!

“I had interviews with what were the ‘big four’ but got nowhere. In all, I applied for 40 jobs. Reluctantly, I applied to SunLife, a major financial services employer in Bristol at the time, and got the job.”

Tell us about your time at Blue Wealth.

“I’ve been here nearly five years now. I’d advised clients before but lived outside the UK between 1997 and 2010 when I moved to Devon to work as a product provider.

“At 53, I decided that 42,000 business miles a year wasn’t for me any longer. I was offered an opportunity at Blue Wealth and haven’t looked back.

“My time at the firm has been fantastic. I’ve been supported to bring my qualifications up to 21st century standards and have a better work-life balance. I’m also treated as an adult – just as well as I’m the oldest member of staff!”

How has the profession changed during your career?

“Beyond all recognition!

“There was no regulation in 1984. Looking back, it was like the wild west.

“When I tell my younger colleagues that there was no such thing as email, we didn’t have a computer on every desk, and that there were free lunches in the company restaurant, which had a subsided bar, I imagine they think I’m from another planet!

“Importantly, regulation has significantly decreased – although arguably not stopped – some of the suspect activities that took place.

What has been your proudest career achievement?

“I think individual things like reassuring a client that premiums for the life assurance policy that they had would not increase because of a cancer diagnosis. Then going on to help them make a critical illness claim that allowed them to pay off their mortgage.

“Also, experiencing increased trust from clients as our business relationships develop over time and they realise that I am on their side and have their backs when they need me.”

What developments are you excited about seeing in your career and the profession in the future?

“In truth, my career has probably run its course in terms of advancement. I’m certainly not thinking of moving on to bigger and better things.

“I am excited about the opportunity to help increase the number of individuals, families, and businesses that Blue Wealth looks after.

“The prospect of AI and ‘robo’ advice becoming more popular scares me. But only because I think that the real benefit we deliver comes from empathy and human interaction, which technology can never replace.”

What advice would you give to someone entering the profession today?

“I’d probably suggest working for a larger employer to start with. Somewhere that provides high-quality in-house training and support to obtain qualifications.

“Once you have that grounding, maybe look for a smaller firm that practices real financial planning.

“This will help you to recognise that the value in what the profession does is in the advice and expertise you can provide, and not in the products you recommend. That might mean ‘unlearning’ some of the things that you’re taught early on.”

Get in touch

If you’d like to find out how Rob, Adrian, and the Blue Wealth team can help you progress towards your financial goals, please get in touch.

Drop us an email at hello@bluewealth.co.uk or call us on 0117 332 0230.

In his Spring Budget, Conservative chancellor Jeremy Hunt announced a consultation on the introduction of a new UK or British ISA. According to the Telegraph, Labour backed this investment initiative and had “no plans” to drop it.

This ISA would give you an additional £5,000 on top of the current £20,000 annual ISA allowance, to invest in UK shares.

If you think this sounds like an appealing proposition, you’re not alone. According to research published in IFA Magazine, almost half of UK adults are interested in opening a UK ISA if the Labour government introduces one.

However, this potential new ISA has sparked debate about “home bias” in investing. That is, concentrating all your investments in UK equities.

This lack of diversification could increase your exposure to risk, which can occur if your portfolio is too heavily weighted in one particular geographic region or sector – if the economy in your home country experiences a downturn, the value of your entire portfolio could fall.

In contrast, investing in a range of overseas markets, sectors, and asset classes could help you effectively balance risk in your portfolio.

Read on to learn more about home bias and find out what steps you could take to avoid it hampering your progress towards your investment goals.

Home bias could increase your exposure to risk when investing

If you hold a disproportionate amount of domestic assets compared to their share in the global market, home bias could be affecting your investment portfolio.

Indeed, FTAdviser has reported that 25% of the average balanced model portfolio is made up of UK investments – even though the UK only accounts for 3% of global GDP and 4% of global equity and bond markets.

What’s more, the UK may have an inherent “concentration risk” as the largest 10 companies account for 42% of the total market capitalisation. This could mean that if you invest in a UK fund, you’re relying on a handful of companies to perform well.

So, if you’ve focused solely or disproportionately on domestic investments, a dip in the UK economy – which is likely to affect businesses in the country – could negatively affect the value of your entire portfolio.

Reasons why home bias remains pervasive among UK investors

You might intentionally favour UK markets because this feels like your “comfort zone”. FTSE 100 companies, such as Marks & Spencer and Sainsbury’s, may feel more familiar and “safe” than those that feature in foreign stock markets.

On the other hand, you may be unaware of the influence home bias could be having on your portfolio. If you don’t monitor and review your investments routinely, changes in global markets – such as the reduction in the size of the UK market in recent years – could lead to unintentional home bias.

Whatever the reason, if you put all your eggs in one basket by primarily investing in domestic shares, the value of your portfolio could fall if the UK economy struggles.

So, eradicating home bias may help you balance risk more effectively.

Building a diversified portfolio could lead to greater investment returns

Diversifying your portfolio, by investing across global markets and different sectors using various asset classes, could not only help you balance risk but may also lead to greater returns.

While diversification involves more than geographical variances, adding international stocks and shares to your portfolio allows you to access growth opportunities you might have missed out on by limiting your investments to a single region.

Indeed, an analysis of data from the past 20 years conducted by Fidelity and reported by FTAdviser has shown the comparative returns of a globalised and UK-centric approach. Investing £10,000 in a diversified global portfolio returned £43,276 compared to only £37,980 when using a portfolio containing 40% UK funds – a difference of over £5,000.

3 ways to avoid home bias in investing

1. Invest in various markets around the globe

Diversifying your portfolio by investing in a range of asset classes in different geographical locations could allow you to balance risk and increase the potential for higher returns.

Indeed, spreading your wealth between various markets around the globe could help limit losses in your portfolio. For example, if the UK market slows, a buoyant US market could allow you to offset your losses against your gains – if you hold shares in both markets.

2. Drill down into the funds you hold

Investment funds usually contain a variety of equities so they may seem like a useful way to diversify and spread the risk in your portfolio. But it’s always worth a closer look.

Indeed, some funds may not be as diversified as you might think they are. As mentioned above, UK funds are often made up of a handful of large companies. However, drilling down into the composition of funds isn’t always simple. So, you might benefit from consulting a financial planner who can help you review your investments and avoid both concentration risk and home bias.

3. Seek advice from a financial professional

As can be seen from the above, assessing funds, building a diversified portfolio, and balancing risk could be complicated.

So, you might benefit from speaking to a financial planner who can help you build an investment portfolio that aligns with your goals and appetite for risk. They can also help you avoid emotion-based decisions, such as favouring domestic equities and unintentionally allowing your portfolio to potentially suffer from home bias.

Get in touch

If you’d like to learn more about how to build a diversified investment portfolio that balances risk effectively, we can help. Please email hello@bluewealth.co.uk or call us on 0117 332 0230.

Please note

The content of this newsletter is offered only for general informational and educational purposes. It is not offered as, and does not constitute, financial advice.

Blue Wealth Ltd is not responsible for the accuracy of the information contained within linked sites.

Blue Wealth Ltd is an appointed representative of Best Practice IFA Group Ltd, which is authorised and regulated by the Financial Conduct Authority.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.