Investment Portfolios Could Fall 5% – Financial Advisor Warns Investors to Check Finances | Personal Finances | Finance


It can be easy to let investments drop to the bottom of your priority list, especially if they are in long-term and relatively stable portfolios, but it can be disastrous when market chaos ensues and investors fail. are not fast. David Woodward, Managing Director of Woodward Financials, exclusively told what “lazy investors” stand to lose if they don’t put their finances first.

However, this does not mean that their clients can be lazy in their investment strategies, after all it is their finances that are at stake and investment managers cannot do anything without the consent of their clients.

A consequence of this is that they are being left out, as Mr Woodward said: “Recently we were approached by a new client and are waiting to get information in order to manage their investments. Shortly after the initial engagement, the markets fell and we still have no control over their investments.

“The client is still invested but not actively managed, which means the delay resulted in a 5% drop in their portfolio which could have been avoided.”

Five percent may not seem like much, but savvy investors will understand that in a long term investment it has cost the investor dearly and Mr Woodward explained that the investor has essentially lost £ 155,000 over the next 40 years thanks to that five percent.


A frustrating but all too common occurrence for financial advisers as they are forced to watch investment portfolios run out while investors take their time deciding what to do.

Mr. Woodward continued, “We review our clients’ investments every day, how often does someone look at your investments?

“Wouldn’t it make sense to spend some time dealing with this hard-earned money. What’s the point of postponing a financial review, it should be at the top of the to-do list, not the bottom? “

Mr. Woodward suggested some thought-provoking questions for those who are just starting to notice different aspects of their own personal finances:


“Who is actively looking after your pensions or your investments? Just because you have a pension or an ISA invested in funds does not mean that it is actively invested. Do you really think the fund you invested in 12 months ago is still the best fund you can be in now? “

Family well-being and insurance

“Do you have a mortgage?” A declining-balance term contract to repay your family home or a life insurance contract or death in service? It’s a good start but what about the loss of earnings of the deceased? Are they the main breadwinner? What will be the impact on the retirement pension of the surviving spouse, vacations, bills, school fees, replacement of the car, maintenance of property? Have you thought about the real consequences in the longer term? “

“Have you considered if the primary income recipient was unable to work due to injury or serious illness? Do you have income protection or a lump sum policy? Is it enough to cover the mortgage and current expenses? Otherwise think about how quickly your life could get out of hand, defaults and bad credit are just the tip of the iceberg, it could even lead to a relationship breakdown, especially when most households are one month away from losing their house or getting into serious debt.


“How quickly do you think the bank will draw on your overdraft or cut funding if it finds out that a business partner or manager has recently passed away? Don’t wait to find out, have a Keyman policy in place.

Mr Woodward noted that not knowing all the answers might sound scary, but it’s usually a good indicator that one needs outside expertise, and that doesn’t count a friend who has already had a mortgage or who has consulted Google.

“Would you go into an auto showroom and ask for the cheapest car, or search for the car that best suits your needs?” Ask an Independent Financial Advisor (IFA) or Woodward Financials and they’ll tell you exactly what you need.

“A good AFI can do a lot for you, it could save you from paying huge sums of income tax, ease capital and estate taxes through careful financial planning, it could advance your retirement without harming your retirement goals or your income, planning for long-term care, these are just a few areas in which an advisor can help you, but above all offers you flexibility, security and choices in life ”, he suggested.

“AFIs are here to help you, to guide you through a minefield of jargon, products and services that you may not be familiar with, their job is to recommend and explain at a level you understand, so don’t feel intimidated, just make sure they are independent and do this survey.


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