I try (and probably fail) to write a blog aimed at independent financial advisers (IFAs) and obviously I am not one. I like reading the publication MoneyMarketing, which I think is excellent. So quite a few blogs relate to articles from the publication. I really like Brian Tora and Mark Dampier. Then, today I suddenly realised that I am going to have to see an IFA to get some investment ideas. For instance, what do you invest in at the moment? UK equities, even with dividends reinvested, have posted a loss over the past decade. This coincides with Gordon Brown's stewardship of the economy.
Do I invest in yet another pension? Would a modest investment bar me from means-tested benefits when I retire in 15 years time? Will pensioners get any benefits then?
If a company like Rio Tinto can see its share price fall from £70 to just under £20 and get imbroiled in a mighty row over Chinese investment (worrying the Australian government), then it looks like individual equities are out.
Investment funds are supposed to be safer with their diversification but suffer from their poor investment choices and high costs. For instance, UK investment funds were
unable to avoid the disintegration of the British banking sector.
What about buy-to-let, which seemed to answer pension needs at the time? If the UK residential property market is going to tank further in 2009, why buy a loss? Distressed buy-to-let investors would see me as a gullible buyer and would probably not lower the price. However, a real asset might be a long-term winner especially with the pound collapsing.
If I see an IFA, I will let you know how I got on.
www.searchifa.co.uk
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