The Daily Mail website carried an article about an investment scheme offering a potential 40% return on burial plots, which rapidly becomes a cautionary tale about unregulated investments and the strong likelihood of losing your capital. (See the original article here; http://www.dailymail.co.uk/money/investing/article-3822179/The-salesmen-offering-40-returns-burial-plots-banks-slash-rates-savers-tempted-exotic-deals-trusted.html
A new financial year brings new expectations, so it would be a good idea to understand what is realistic and consider the dividing line between a sensible projection and the implausible marketing claim.
A recent research project by the Citizens Advice Bureau highlighted that new retirees have little idea of what to expect as a sustainable income and are often drawn to an implausible “guaranteed return”, like a moth to a flame. In a research experiment 88% of responders were drawn to “guaranteed” returns of 10-15%.
Pension Freedom has delivered a massive change to the “at retirement” pension market by dispensing with all of the previously expected norms; previously the majority of retirees would buy an annuity, either from their existing provider or as an Open Market Option. The choice of releasing cash, changing to drawdown or taking an annuity has widened the scope for unscrupulous fraudsters.
Most businesses have a story, a reason for them to exist that makes them different or more appropriate for their intended clientele. Some businesses are the result of a flash of inspiration, a calling or possibly a “Road to Damascus” moment.
Martin-Redman Partners was born out of frustration with financial services as it stood in December 2012; stuffy, untrustworthy, overly-complex, ridden with jargon and full of unpleasant surprises. Some things we tackled head-on, others require a longer term view, but in all things we try to inform, educate and empower.
I was asked for an ethical pensions scheme and then promptly ran into a few issues about what is ethical? “Ethical investment” is the idea that you can make the world a better place by placing your investment money with investment managers and companies that would use your money to invest in activities and industries that you approve of. To some extent, making a profit or investment gain is secondary to how it is done, but an investment has to show a return, otherwise it becomes a charity.