I was very pleased to be asked by James to do a blog, I thought I’d tell you about how some relatively small changes from a thorough review can make a huge difference..
I went to see a couple yesterday, Linda and Graham, with my son Alex who works with me in the business. This couple started using our services at the end of 2011. When we reviewed their life insurance we found that the insurer had overstated Linda’s age, adding insult to injury they were charging her £5 a month too much for the privilege! This had been going on for some time so they were refunded £500. This is unusual, but when you get into the detail there’s often something you don’t expect.
Back in 2011 this couple had a pension each. We moved Graham’s pension to St. James’s Place which we thought would be a better home for his money, however there was a 4.5% charge to move Linda’s fund so they decided to keep her pension where it was. What was interesting is that they were both invested in the same fund with the same company, so I found out at the review last night how both clients’ pensions had performed.
At our meeting we reviewed Linda’s pension first; since December 2011 she was up 21%. Looking at this figure in isolation a 21% increase over this time period may not seem like a poor performance. However, as we tell all our clients investment performance is all relative and that a good performing investment is one that performs well against its peers. We then looked at the performance of Graham’s pension which I know would have been up 21% had we not moved it. As it turned out Graham was up 33% over exactly the same time period. Interestingly, we had not given Graham any additional risk in his investments.
If we include the £500 that the insurance company sent Linda and Graham the couple are over £5,000 better off since they started with us, than they would have been had they not undertaken a review and listened to our advice over the past couple of years. We all work to earn a living but this result for my client makes it feel worthwhile.
At Samuels Financial, Alex, our team and I constantly strive to help our clients make their investments work harder for them, we do not charge for initial reviews and we also make very nice coffee. If you feel that a review would be of benefit to you please feel free to speak to James Sheard at The Accountancy People who can arrange a meeting with me or one of the team.
You can use the form to the right to book a meeting or call 0161 947 9207 to get in touch with James Sheard and the team.