I'm back - sorry it's been so long since my last post!

Wow - six months since my last post! It's hard to believe, but then there has been a lot going on. We have decided that Carrington Wealth Management will, in future, be (a) directly authorised (we're currently part of the Paradigm network of financial advisers) and (b) a limited liability partnership.

There are two main reasons for the first change - one is that being part of a network places restrictions upon us in terms of the subjects that we can advise clients on (for example, we aren't permitted to advise clients in Spain on QROPS pension plans) and the second is that as we are authorised via the network we could be unable to advise clients in the future if the network got into financial difficulties (as has happened with others in the past). Direct authorisation ensures the continuity of our service and the widest possible range of options for our clients.

The change to an LLP (Carrington Wealth Management is currently an 'ordinary' partnership between myself and my wife Jill with unlimited liability) is for two reasons - the first is our own financial security and the second is that it makes it easier to grow the business.

Our application for direct authorisation is currently undergoing scrutiny by the Financial Conduct Authority and we hope to hear that the new LLP has been approved within the next few weeks, after which time I'll be posting much more regularly. If you have any ideas for subjects that you'd like to see covered in the blog or on our YouTube channel them please let me know.

Kind regards, Steve Laird

A New Year = A New Dawn for financial advice in the UK

Jan 1st, 2013 marked the beginning of a new era for financial advice, particularly in the areas of investments, pensions and general planning. It's called the Retail Distribution Review (RDR). As a result of the RDR it is no longer possible for advisers to receive commission on new investments or pension plans (including top-ups) so you need to be prepared to pay a fee for the advice - either directly or indirectly (some, but by no means all, providers will facilitate fees being paid out of the capital that you invest with them, if you prefer it that way).

Fees will be explicit i.e. you'll know exactly what your adviser is being paid and what you can expect in return, both initially and on an ongoing basis. You may be tempted to pay for the initial advice and save money by not agreeing an ongoing review aervice but this may be an expensive mistake, unless you are expecting your circumstances never to change, nor your attitude towards investment risk, nor global economic conditions, nor the managers who look after your money on a day-to-day basis etc.

That said, most people do not need to see their adviser more than once or twice a year. Your own adviser will be able to explain what review services they are offering and how much they'll cost you. If you are unhappy you can always vote with your feet and pay the fees to another firm instead.

One final point - paying your adviser a fee shouldn't increase your overall costs - they would previously have been paid commission which came out of the charges made on your investment/pension. Those charges should now reduce as the providers are no longer (without your express permission) paying the adviser, although you shopuld be aware that many providers intend to keep that money for themselves - a shameful policy imho and perhaps a good reason to take your savings elsewhere?

Hello and Welcome

Hello there!

Welcome to our new blog.

Our goal is to educate and entertain our followers with practical tips, advice, thoughts and comments on the financial world and beyond - helping you to be truly Clever With Money.

Your thoughts and comments are always welcome so feel free to express your opinion, join the debates and suggest topics that you'd like to see covered in future posts.

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Steve