When the property market was roaring, using property as a fundamental part of a retirement fund was a fashionable choice for some. Unfortunately, once the prices started falling, the risks involved in that strategy became all too apparent.

Yes! Property is a good investment

Nevertheless, many property owners and would-be investors have such strength of belief that property is their salvation, interjecting with an alternative opinion is almost impossible.

For the record, Guardian Wealth Management is not anti property.

Ask one of our advisors if you should have property investments and he or she will shout back a resounding ‘Yes!’

Ask the same advisor if property should make up all or the bulk of a portfolio and the answer will be a resounding “No!”

Our argument against wearing property blinkers is clients cannot see other opportunities if they are dazzled by potential property profits.

Every experienced investor knows you have to hedge your bets and that means relying on a spread of investments that have different levels of risk and return.

Bricks and mortar

If you are looking to invest in property, it’s important to remember that you are not limited to your own home.

If you have the funds available or are able to take out the right mortgage, then buy to let (BTL) could be an option. Some people may already have BTL properties and, just like with any investment, it is important that you review the income and growth potential against any outgoings to ensure it is still worthwhile.

One of the main problems with owning ‘bricks and mortar’ is that it can be ‘illiquid’ – namely it can take a while to sell, so is not very convenient if you need to get to your money quickly. You are also at the mercy of buyers who can change their mind or offer less than the asking price.

Unfortunately, it can be a very high-risk strategy to invest in residential bricks and mortar alone as your sole investment to fund retirement. As with all investments, it is risky to put all your eggs in one basket. It is important to work with your financial adviser to take a broader approach to your investments and build a diversified portfolio that matches your attitude to risk.

Property funds

If an investor is looking to benefit from the diversification that property can add to a retirement planning portfolio, it might be worth considering property funds.

There are different types of funds available. Some funds invest indirectly into property, by buying shares in companies that themselves physically buy or build property. Other funds invest directly into property by buying commercial property such as office blocks and shopping malls.

It is worth pointing out that the value of commercial property behaves differently to residential property, and can fall significantly in value in bad times as well as potentially doing better than residential property in good times. That said, for people looking to include property as part of their retirement planning, and for younger people who can’t afford a deposit, these funds do offer an affordable option. Some of these funds can even give access to commercial property and property shares globally, potentially diversifying a portfolio further still.

There are, however, a couple of things you need to bear in mind. Firstly, the value can go down as well as up. Secondly, fund managers can temporarily suspend the fund while the value of buildings are realised in order to meet withdrawals. In that instance an investor’s money is temporarily ‘locked’ in the fund.

Solid Foundations

Whilst it is achievable to diversify within property types, and at the same time have various options in which to access property for retirement planning purposes, you should also make sure you consider how much you are diversified with other investments.

Guardian Wealth Management advisors help clients tailor a strategy to meet their goals and budget.

The other important factor about investment strategy is maximising fund growth and income while paying less tax.

Do not forget investment also involves estate planning as a tool for your family and loved ones to pay the least tax possible when you pass on.

Guardian Wealth Management will look at the whole of your retirement and savings plans and not just investments in isolation. This is why we talk about ‘wealth management’ and not just financial advice.  Wealth management involves savings, investments, pensions and tax all rolled up together and as an independent company, we can search the whole financial market for the best  investment, pension and savings products to suit individual needs.

Guardian Wealth Management fully endorses the principle and function of the FEIFA, which has been established to benefit both clients and its Member organisations.

Membership is granted only to those organisations which can prove to the FEIFA Executive Committee that they are committed to operating in line with the rules and regulations governing Financial Advisers.

At Guardian Wealth Management we are committed to complying with the expectations of our regulators and to the providing best advice to our clients.

We currently provide our services in 14 different jurisdictions, we are regulated in the UK by the Financial Services Authority (FSA) and are supervised in 11 countiries across mainland Europe by the Commission Bancaire, Financière et des Assurances (CBFA) We are also a member of the Organisme d’Autorégulation fondé par le GSCGI et le GPCGFG (OAR-G) in Switzerland and we recently gained authority from the Qatar Financial Centre Regulatory Authority (QFCRA) to operate in Qatar.

As the first UK and FSA regulated Financial Advisory practice to be authorised in Qatar, we are excited to be expanding into the globally respected financial district of Doha. 

HRH Prince Andrew recognised the launch personally during a function attended by David Howell Chief Executive of Guardian Wealth Management Qatar LLC on Tuesday 27^th October 09.

“We are delighted to be authorised by the QFCRA” says David Howell, Chief Executive Officer of Guardian Wealth Management Qatar LLC “It has been a long journey from the initial notion to the receipt of our authorisation and we have greatly appreciated the tremendous support given from both the QFCRA and the QFCA.  For our efforts to be recognised by His Royal Highness Prince Andrew and the British Ambassador is testament to the importance of our achievement. We look forward to developing a successful financial advisory business which will contribute positively to clients in Qatar and to Qatar as a whole.”

John Hawkins, The British Ambassador in Qatar, added “Trade and investment between the UK and Qatar is up again this year and we continue to see a steady flow of UK companies keen to build partnerships here and do business.  The services sector is an area of particular strength in the UK with a number of companies setting up in Qatar and the QFC over the last year. I am delighted to see Guardian Wealth Management join their ranks”

The opening of the Doha office is building upon the company’s strong presence within the UK and Europe and is the start of their expansion plans throughout the Middle East.

The new industrial powerhouses of the world are the BRIC economies – Brazil, Russia, India and China – but the one that looks set to outstrip them all is Brazil.

Guardian Wealth Management is watching developments in Brazil closely as the announcement of the discovery of billions of barrels of offshore oil look set to change the balance of political and economic power in Latin America and beyond.

Brazil’s undersea ‘black belt’ of oil

The size of the find looks to propel Brazil from nowhere to one of the world’s top 10 oil producers with oil companies predicting reserves of more than 350 billion barrels of crude locked 6,000 feet under the sea in an 800 kilometre strip of ocean.

Brazil’s oil let’s the country stand head and shoulders above Latin American rival Venezuela, and with a more stable government than that of Venezuela’s President Chavez, devalues Venezuela’s riches as both countries race to auction oil and gas fields to the highest bidders.

The other emerging market on everyone’s lips is China, but unlike Brazil and Russia, the country is short of natural resources and is spending big to secure the raw materials needed for the economy to surge on.

India has vast manpower but little in resources. Religion and politics sometimes collide to cause problems for business. The most recent example is the demise of Indian airlines because of a three-way row between the airline industry, the national government and state governments.

The airlines are crippled by huge fuel taxes that make them uncompetitive with other international airlines but national and state politicians are locked in arguments over who is paid the tax because if they lose the money, other projects and initiatives will fail from lack of funding.

Advisors are players in an investment team

Investments, politics and economics are so intertwined and complicated that Guardian Wealth Management considers that serious investors need more than just an independent financial advisor.

The financial world moves so quick, a team of analysts; economists and investment managers back up Guardian Wealth Management’s advisors to ensure our clients receive the best and latest financial information to make well-informed decisions about risk and return.

These experts keep a close eye on the massive coal, copper and uranium finds in Mongolia and the cat-and-mouse game between the country’s BRIC neighbours Russia and China for control of the reserves.

What happens in the next decade to the BRIC countries is of global importance. Their economics and politics will dominate the world – just think they already are huge countries with governments representing a massive proportion of the world’s population.

As the people become richer as the economies grow, new markets open for selling luxury goods and services only available in more established ‘old world’ economies.

BRIC economies want to take the lead off the dollar

The other big issue for emerging market investors is currency exchange. The US dollar is the world’s reserve currency, but the BRIC economies want to change that so they are not tied in to the vagaries of exchange rate fluctuation.

China is a leading force to move the yuan away from the dollar to give the US less financial clout ion the rising industrial powers.

When looking at BRIC investment, the forces of politics, religion and economics need weighing up to arrive at a risk quotient – the ultimate decider of on a scale of 1 to 10 how much risk an investor is prepared to take for a return on putting cash in to a BRICS economy.

After deciding on the level of acceptable risk comes the question of how much to invest, and the investment vehicle

As a ‘whole of the market’ provider, Guardian Wealth Management can give unbiased, independent advice on any investment product offered by any provider – this adds up to literally hundreds of thousands of products.

The trouble with so much choice is that making sensible decisions becomes that more difficult as the pros and cons of investing between different products can often become very subtle.

That’s why Guardian Wealth Management believes that knowing the client is as important as giving advice because tailoring a personal investment strategy means a long term business relationship that benchmarks advice and has built in periodic reviews to make sure fund performance is monitored and on-track.

The Nomura Global Indices note provides peace of mind that your capital is protected whilst offering the potential of 6.75% growth per annum from three of the world’s major Stock Markets. This new and exclusive product offers investors the prospect to receive enhanced returns which are linked to the performance of the FTSE 100, S & P 500 and DJ Eurostoxx 50.

Key Advantages:

• 100% Capital Protection
• Five Year Term
• Potential Annual Returns of 6.75%
• EUR or GBP Denomination

Strictly Limited availability and offer period – Closing Period 29th Jan 2010

Act now by contacting your financial consultant to avoid disappointment and discuss this in more detail.

Please contact your personal GWM financial adviser for more details. You can also contact the GWM head office using the contact form here

The current financial crisis was largely triggered when trust in financial markets was destroyed by lack of transparency and evidence of the absence of ethical behaviour by many in the banking and financial business. The crisis has proved the relevance of the Prize for Ethics in Finance and Robin Cosgrove’s vision of the threat posed by lack of integrity, trust and ethical practice in banking and finance.

The winners of the 2009 global Robin Cosgrove Prize were a remarkable group of young finance professionals from all over the world, who submitted their thoughts on Innovative Ideas for Ethics in Finance. The first prize went jointly to Elise Pellerin and Marie Casimiro, both French, for their paper on “The need for order in the disorder of finance” and to Geoffrey See of  Singapore, who wrote on “Internationalism, Institutions & Individuals: Systemic Changes for a Systemic Ethical Crisis” . Meredith Benton, of USA, won the second prize with her paper on “Emotions, Personal Ethics and Professional Life – the lost link” .In addition, the International Jury of the Prize awarded a “Special Commendation” to David Sifah of Ghana for his excellent paper on “Financial Ethics”.

The new Ibero-American Prize, sponsored by MAPFRE of Madrid was won by

Leire San-José from Spain, who wrote on “Ethical Cash Management? A Possible Solution”, and the second Prize went to Felippe Araujo (a Brazilian working in Japan) who wrote on

“Ethics: the key to Credibility”.

All these brilliant young finance personnel recognised that most financial transactions have ethical dimensions. Whether it is a question of trust, methods of remuneration, conflicts of interest, or default on debt, ultimately you as clients need to feel that the professionals who look after your assets believe in ethical behaviour. It is not just a question of compliance, ticking the box to fulfil regulations. Good practice in the world of finance, as in most other aspects of human life, depends on people doing the right thing because it is the right thing to do.

The third edition of the Prize for Ethics in Finance – the Robin Cosgrove Prizes – will be launched in London in April 2010. Hopefully many younger clients and maybe staff of Guardian themselves will consider writing about their commitment to ethics in their financial lives. Yes, ethics matters. All around us we see the disastrous impact of the collapse of some of the biggest finance-related enterprises in the world and the knock-on implications in terms of loss of homes and jobs. Let us hope that the global economy will significantly improve in 2010 – and that everyone in the finance sector will remember the lessons that trust and integrity are fundamental for a sustainable recovery.

Dr Carol Cosgrove-Sacks

Director, Robin Cosgrove Prize

www.robincosgroveprize.org

Guardian Wealth Management is a partner of the Robin Cosgrove Prize for Ethics in Finance

Guardian Wealth Management, the first UK and FSA regulated Financial Advisory practice to be authorised in Qatar, is excited to be expanding into the globally respected financial district of Doha. 

HRH Prince Andrew recognised the launch personally during a function attended by David Howell Chief Executive of Guardian Wealth Management Qatar LLC on Tuesday 27^th October.

“We are delighted to be authorised by the QFCRA” says David Howell, Chief Executive Officer of Guardian Wealth Management Qatar LLC “It has been a long journey from the initial notion to the receipt of our authorisation and we have greatly appreciated the tremendous support given from both the QFCRA and the QFCA.  For our efforts to be recognised by His Royal Highness Prince Andrew and the British Ambassador is testament to the importance of our achievement. We look forward to developing a successful financial advisory business which will contribute positively to clients in Qatar and to Qatar as a whole.”

John Hawkins, The British Ambassador in Qatar, added “Trade and investment between the UK and Qatar is up again this year and we continue to see a steady flow of UK companies keen to build partnerships here and do business.  The services sector is an area of particular strength in the UK with a number of companies setting up in Qatar and the QFC over the last year. I am delighted to see Guardian Wealth Management join their ranks”

The opening of the Doha office is building upon the company’s strong presence within the UK and Europe and is the start of their expansion plans throughout the Middle East.

QFC Tower
1st Floor
Diplomatic Area
Doha
Qatar

Many people moving between countries already have life insurance but fail to realise that the terms and conditions of the policy may invalidate the cover if you become an international worker or expatriate.

Not only do you then waste the money you are paying in premiums, because if the policy is triggered nothing is paid, but you are also exposed to the financial risk you wanted to cover with the policy.

With sensible financial planning, this need not become such a problem.

Anyone of any nationality living outside his or her homeland can buy life insurance.

Several policies are generally available from providers all over the world. As with all life insurance products, the policies come with terms, conditions and add-ons that can make the premium go up or down depending on your personal needs.

The four main options are:

• Level term  – these policies have fixed premiums throughout the policy and only pay if the insured person dies while the policy is ‘live’. If the insured person is still alive at the end of the policy term then policy does not pay any return.
• Whole of life – Whole of life policies are guaranteed to pay out on the death of the insured – because the policy lasts for the lifetime of the insured person rather than a fixed term. Whole of life is generally the most expensive life cover because of this pay out guarantee.
• Decreasing term - Often the life cover vehicle running alongside a capital and repayment mortgage because as the debt decreases, the amount of life cover decreases pro rata.
• Annually reviewable life insurance - a life policy that has the terms reviewed every year, and consequently the premiums rise in line with the reviews.

The basic structure of international life insurance policies is the same as policies issued in most countries.

In addition, they will include options to pay premiums and any settlements paid in different currencies.

Why doesn’t the policy I already have cover me as an expat?     

Two issues complicate buying insurances as an international worker or an expatriate.

The first is the country where you live and the second is your nationality.

Insurance companies, who obviously want to pay out the least possible to protect their profits, compound the problems.

They employ statisticians called actuaries who analyse data based on ‘mortality’ or death rates and ‘morbidity’ or illness rates.

From this data, they calculate the risk you pose to insure – from where you live, the work you do, your age and medical history they try and project the time of your death and whether you will contract any critical illnesses.

This is fine while you remain in your country of birth, but when you move overseas, these figures become more difficult to predict because mortality and morbidity rates in the country you move to affect the calculations.

To reduce the risk, your home country insurance country will probably void your policy or limit the cover.

The other factor is price – because the UK has low mortality rates, life insurance is cheaper than in some countries with less effective health care and a lower standard of living.

How do I arrange international life insurance?

The best advice is to discuss your life insurance needs with one of our professional qualified advisors. Our advisors are not tied to any institutions and can choose from products across the ‘whole-of-market’ rather than from a selection of preferred providers, this means you will benefit from a cover plan to suit your individual circumstances and at a better price. Consulting with one of our advisors will also help you to discuss the tax implications of any insurance payouts you or your family receive.

If your child starts at prep school, goes to a good private school and then on to university, the bills can add up to a small fortune over the years – and if you have more than one child can double or treble.

Our school of thought is funding education falls in to three investment classes:

1) Families wanting to supplement fees paid from income

2) Families investing a lump sum that will provide the income to pay fees

3) Families looking at a regular savings plan to pay the fees

Setting up a plan to fund education fees is no different from any other investment plan, except you need to have a robust and effective strategy in place to maintain continuity of education.

This means looking at affordability of the education plan you have for your child.

Few parents have the ability to continually dip in to their income to pay education fees.

Over such a long period as schooling and university, life events inevitability have an effect on income and any education funding should have built in ‘buffer’ or cash reserve to call on when times might be harder.

TIP: One plan for a cash buffer is looking at international life assurance.

Matching your needs to the right savings plan

It’s important to remember that funding your child’s education is tailored to the financial needs of your family.

To make sure you receive the best advice, talk to a professional independent financial advisor whose business is regulated by the Financial Services Authority.

TIP:  Check your advisor is allowed to choose options from the whole of the market and is not tied to a particular financial institution or a selection of preferred providers.

You want the best scheme at the best price and you’re unlikely to find this from a tied advisor or financial institution like a bank

Schooling is a family affair

Many families club together to pay for education fees – this may mean specialist advice about setting up funds, trusts or foundations for grandparents.

This is a specialised financial planning area. Trust planning rules do not make this a beneficial solution for every family.

TIP: Don’t forget to factor in estate planning to look at any inheritance tax issues

Investing in the future

Lots of strategies are available to fund education.

As mentioned above, paying for schooling falls in to three categories.

For instance, a family may be able to afford 60% of the school fees out of taxed income and need a boost from an investment to provide the extra cash.

Another family may have a lump sum inheritance that can be invested to provide an income that covers school fees.

Others may not have any lump sum or lack the ability to fund the greater part of fees out of their income but can afford to put a little away regularly over a long period to build a larger fund.

When’s the best time to start saving for schooling?

The answer is as soon as you can. Even if you don’t have any children now, there is no reason why you can’t start an investment strategy to pay for educating your children.

If plans change or you don’t have children for some reason, then that’s not a problem because you can review your financial plans and put the money to another use – like investing as a lump sum in an offshore bond or a QROPS pension scheme.

Financial planning gives you flexibility

One of the most important points about saving to pay for a decent education or for any other reason is not to start a scheme and just leave it to run itself.

Our Professional Advisors will regularly review the performance of the scheme to ensure it is doing you and your children a service.

Tax laws change, new products come on to the market and personal circumstances change.

These points have to be considered regularly and your financial strategy tweaked accordingly.

If your pension assets are tied up in a SIPP and you live permanently outside then UK, then you should seriously consider reviewing this for the more efficient QROPS.

SIPPS were the hottest pension product on the financial catwalk until QROPS burst on to the scene offering tax incentives and benefits that that a SIPP can’t offer.

First point to make clear is that if you have UK pension rights and are resident in the UK, you must stick with your SIPP because a QROPS is not for you.

If you are an international worker or expat with UK pension rights tied up in a SIPP, then contact Guardian to find out how you can improve your wealth prospects by transferring the fund outside the UK.

Compare the Benefits:

Investment freedom

As a UK pension product, regardless of where you live, a SIPP can only deal with investments in Sterling.

A QROPS gives investors a whole new world of investment choice – in any currency, in any country and in any tradable asset

Personal fund management

Any options a SIPP gives for personal investment control are also available through a QROPS.

Likewise, you can hand your investment to a professional fund manager.

Tax efficiency

A QROPS has two tax advantages a SIPP does not have – the fund can be based in a low tax jurisdiction to maximise growth while the investor can live in another tax jurisdiction with a low income tax regime.

Tax free lump sum

Most QROPS and SIPP products allow a 25% tax-free lump sum drawdown.

Buying an annuity

A SIPP investor has to buy a SIPP by the age of 75 years regardless of the annuity market.

A QROPS has no requirement for an investor buy an annuity.

Passing your pension wealth on to your family and loved ones

Dependent on the type of annuity purchased at outset when the SIPP investor dies, the pension fund may die with him or her.

For a QROPS investor, because no annuity purchase is necessary, the pension fund remains as part of the investor’s estate for passing on.

This stresses the need for competent estate planning as cross-border inheritance rules are complex, but the result is the investor’s family and loved ones are more likely to retain a large share of the pension fund.

How safe is my money in a QROPS?

Many investors would benefit with a QROPS.

Two main reasons affect the decision making of these investors:

• Many general financial advisors who only operate in the UK market have a poor understanding of a QROPS, the benefits the schemes offer and how they work.
• Many SIPP investors who have a fund value of £100,000 or more suffer ‘pension neglect’ – this is where investors set up their pension and then fail to review how the fund is performing.

A QROPS is a specialist financial product aimed at a select market of investors with UK pension rights.

To ensure your pension is not underperforming and that you could not benefit by transferring your fund offshore, discuss your pension with one of our advisors.

The advisor will benchmark your pension fund performance and then offer comparisons with QROPS products.

Why was I advised to take out a SIPP if a QROPS is better?

This could be for a number of reasons which our advisors can answer…

What is more important is that you address the issue and make sure you are maximising your pension wealth.

A QROPS is designed specifically for non-UK residents whilst a SIPP is for a UK resident. If you are a non-UK resident a SIPP may be the wrong tool for the job and you should consider a QROPS.