By Peter Brooke
This article is published on: 8th April 2025
Quite understandably my inbox has been full of messages from concerned clients and musings from commentators and investment managers about how to respond to the current market reaction to President Trump’s raft of tariffs.
The uncertainty around how these tariffs will play out has led to large falls in stock markets, especially the US.
As discussed in my last newsletter Lets Talk About Risk, volatility is an important and unavoidable part of investing and will be negated by time in the market and can provide great opportunities. The key is to ‘stay the course’ and try and ‘see through the noise’.
However, I did want to get something out to you with some current thoughts about what is happening, what might happen in the near future and why ‘staying the course’ is the best option.
When markets turn volatile, perspective is everything.
The past week feels pretty tumultuous but, of course, we’ve been here before.
The table below shows the maximum intra-year drawdowns (DD) and end-of-year total returns (TR) for the S&P 500 from 1950 to 2025.
It reveals that after severe drawdowns, the market has often recovered the full decline and finished the year strongly positive.
Years to Note:
On each occasion, the best course of action would have been to avoid the noise and stay invested.
I hope that the above shows that though periods of volatility will always happen and always be temporary it is best to stay the course and try and avoid the noise;
I do appreciate that it is difficult with today’s ‘news’ channels adding to the feeling of panic on an hourly basis so I have shared below some links from firms much closer to the markets to share more detail about what is happening and what investors should consider in these temporarily volatile times.
Traversing Trump tariffs by Daniel Casali, Chief Investment Strategist at Evelyn Partners
Trump’s tariffs: how should investors respond? From Rathbones Investment Management
I would like, once again, to thank these expert commentators and the team at New Horizon Asset Management for their quick and important updates to a challenging situation.
As always, please remember that financial decisions should be made with careful consideration of individual circumstances and professional advice, I am here to support you.
If you have missed any previous news and updates these can all be found on the archive page here.
If you have any questions please use the the below channels, or the booking system – always drop me a quick message if you need a time slot outside of those available.
Mobile & Whatsapp: +33 6 87 13 68 71
Email: peter.brooke@spectrum-ifa.com
Facebook: Peter Brooke – Financial Advice
Calendly: https://calendly.com/peterbrooke/30min
By Peter Brooke
This article is published on: 30th March 2025
“Risk” is an unavoidable, and sometimes welcome, part of investing so having a better understanding of the different forms of risk can help investors make informed decisions that align with their financial goals. In this (quite long) article, we explore key types of “risks” and how they impact financial planning.
Definition: The possibility of something bad happening!!
Definition: The degree of uncertainty and/or potential financial loss inherent in an investment decision.
So we need to frame our conversations about “RISK” by trying to understand the ‘something bad’ in every decision we make.
Inflation Risk: The risk of doing nothing!
A.K.A. – The Erosion of Purchasing Power
Inflation risk occurs when the value of money declines over time, reducing its purchasing power.
For example, if inflation averages 2.5% per year, €100 will only buy €53.10 of goods in 25 years’ time.
To counteract inflation risk, investors should turn to non-cash assets like shares and bonds, which have historically always outpaced inflation over the long term.
What’s the something bad? – The risk of doing nothing and leaving money in a bank account will guarantee a financial loss over the long term.
Permanent and Total Loss of Capital
Companies can and do ‘go bust’ and for an investor in those company’s shares this would mean a total and permanent loss of capital – the share price falling to zero.
Therefore understanding how a company is managed and investing across a diversified group of high quality companies will minimise this risk.
Outsourcing to a fund manager to diversify this risk is a great way to ‘avoid the losers’ even if you don’t always ‘own all the winners’.
What’s the something bad? – Investing in just one or a few companies and not understanding the ‘fundamentals’ of each investment.
Volatility: Fluctuations in Values
Volatility is often ‘defined’ as RISK with respect to investments.
Volatility refers to short-term fluctuations in the price of an investment; for example a share price.
While dramatic drops can be unsettling, history shows that volatility is entirely normal and markets always recover over time.
For example, look at the chart below; since 1980, the US stock market (S&P 500) has experienced declines averaging 14.1% during each year, yet annual returns were positive in 34 of those 45 years (75%).
The red figures show the largest market drop in value for each year and the grey bars show the total return for that same year… for example 2024 shows a drawdown of 8% but the S&P 500 finished the year 23% up.
Volatility is NORMAL and does NOT mean a capital loss for the long term investor.
Volatility risk is mitigated by TIME in the market
Volatility is part and parcel of investing, and your investment time horizon almost without exception determines the likelihood of investment success. This chart shows the annualised returns over four different time frames (1, 5, 10 and 20 years) using data from 1950 to today.
A 50/50 portfolio of shares and bonds (the green bar) shows that in the last 75 years you could lose up to 24% or gain up to 49% in any given one year period.
However, over every 10 year rolling period in that same 75 years, your worst possible return would be 1% p.a, (ie. no loss) and the best would be 17% p.a.
The longer the investment term, the less relevant volatility becomes, and crucially, the longer the investment term, the greater the likelihood of investment success.
What’s the something bad? – Not maintaining a long-term perspective and reacting impulsively to market swings.
Longevity Risk: Outliving Your Wealth
With increasing life expectancy, investors must consider the risk of outliving their assets.
For a couple aged 65 today there is a 92% chance that one of them will live to 80 and a 49% chance one will live to 90.
Planning for a longer retirement by investing must now include more exposure to growth-oriented assets.
Sequencing Risk/ The Timing of Returns Matters
For retirees or those drawing an income from investments, sequencing risk— the order in which returns occur— can significantly impact portfolio longevity.
A market downturn early in retirement can lead to a faster depletion of funds compared to a downturn later in retirement.
Strategies like maintaining a cash reserve, actively managing portfolio risk as you approach retirement and diversifying investment assets will help.
What’s the something bad? – A market correction just at the point of retirement can significantly impact the quality of that retirement.
ROMO – The Risk Of Missing Out: The Cost of Not Investing
As well as the risk of not keeping up with inflation, there is also a significant risk (and great financial cost) in staying out of the market.
The ‘magic of compounding’ delivers substantial rewards for the patient, long term investor.
The 8 – 4 – 3 Rule
Here is a table showing the compounding effect of a 7% annual return:
What’s the something bad? – The risk of doing nothing and not benefiting from compounding returns.
Currency Risk
Expatriates often have assets in one currency but expenditure in another; for example a Pension in British Pounds and outgoings in Euros.
As global investors there will always be some form of underlying currency risk but mitigating the practicalities of moving money around from one currency to another is possible with careful planning.
Options could be:
What’s the something bad? – The risk of not correctly matching your assets with your liabilities – a large fluctuation affects your lifestyle.
Assessing Your Attitude to Risk:
All of the above is to help our conversation about ‘RISK’ but in order to best set up and review your investment portfolio we have a 3 part process to determine exactly how much investment risk you can tolerate:
1. Your ATTITUDE to risk – this is a psychometric test, via a questionnaire, to assess your in-built view on risks, volatility and returns.
2. Your CAPACITY to take risk – this is a deeper understanding of your overall situation and therefore your ability to weather ups and downs in portfolio values… i.e. do you have other assets, a large pension or property income; how reliant are you on your portfolio at any given time?
3. Your TIME HORIZON for investing – when do you need to access to this money? Will the access be to draw an income or large lump sums or even, all of the fund in one go? Or is this money just to be invested to pass on to beneficiaries?
The answers to these 3 questions provide us with a ‘score’ and ‘understanding’ of how you will use the money being invested… this allows us to assign a ‘Risk Benchmark’ to your portfolio, from which we will determine its asset allocation and then monitor its performance and volatility for the duration of the investment.
Obviously, your TIMESCALE changes over time and your CAPACITY can change as your life situation changes; even if you maintain the same inherent ATTITUDE to risk we must always review and monitor the overall position of your portfolio and potentially change your benchmark as time passes.
Final Thoughts
Investing always carries ‘risks’, but knowledge and strategy can help manage them effectively. Whether it’s inflation, market fluctuations, or longevity concerns, working with a financial adviser ensures that risk is considered within a well-thought-out plan. Overall doing nothing is the largest risk.
Staying focused on long-term goals, and avoiding emotional reactions to short-term market movements, usually leads to successful financial outcomes.
I would very much like to thank the team at RBC Brewin Dolphin for their kind input and help with this article, I truly hope you found it useful.
If you’d like to discuss your investment strategy and how to manage these risks, feel free to get in touch!
By Peter Brooke
This article is published on: 7th March 2025
I’m always looking for ways to improve how we can work together, ensuring that your financial planning experience is seamless, efficient, and tailored to your needs. To that end, I am excited to share some recent technology updates that will enhance our communication and collaboration.
These two new enhancements add to the suite of tech tools I am already using to save time, improve communication, improve my efficiency in dealing with follow up tasks and provide you with the best financial planning service possible.
Spectrum advisers and our clients are spread across Europe and so we have invested into an innovative virtual office via App.Spatial.chat to offer a more interactive and engaging way to meet remotely. This platform allows for an easy to use virtual face-to-face experience, making it easier for us to discuss your financial plans in a comfortable, secure setting – whether you’re at home or on the go.
This tech does not replace face-to-face meetings but offers us another way of meeting. I will be offering this as an invite option via my Calendly Booking system as well as zoom, teams, telephone calls and, of course, face to face meetings.
When you enter the Spectrum Virtual office, as a guest, you will see a brief introduction as to how it works, you can then enter the main office or any of our ‘country’ offices, via the list on the right hand side of the screen.
Our meetings will be conducted in my own personal office which is password protected so we have complete privacy from anyone else who might be online at the time.
I look forward to seeing some of you there over the coming months.
To ensure I capture every important detail during our discussions, I will now be using Otter.ai to record virtual and even live face to face meetings, with the agreement of my clients.
This tool allows me to create accurate transcripts of our conversations, helping me stay fully aligned with your financial goals and ensuring that nothing is overlooked.
Rest assured, all recordings and transcriptions will be handled securely, I permanently delete each one as soon as I have downloaded the transcribed notes and follow up to task lists, maintaining strict confidentiality in accordance with data protection standards.
Click on the following image to view a brief introduction to Otter
If you prefer for me not to record our meetings, please say so, and I will turn off the tech. Likewise, if you want me to send you the notes I would be very happy to.
Cash Calc Secure Client Portal for data gathering, expense tracking, document sharing and even secure messaging: https://the-spectrum-ifa-group-1002.cashcalc.co.uk/register?ref=MTIzMTU=
Calendly booking system for easy call and meeting booking linked straight to my diary https://calendly.com/peterbrooke/30min
DocuSign and Adobe Sign – these allow me to send you paperwork to sign digitally and securely to save us all time and the requirement to print and post documents.
The future of finance is undeniably tech-enabled. By embracing AI and support tools like these, we plan to remain competitive, agile, and customer-focused.
Feel free to get in touch if you have any questions via the below channels, or the booking system – always drop me a quick message if you need a time slot outside of those available.
If you have missed any previous emails, click here to access the Archive.
For now, have a great day, speak soon…
By Peter Brooke
This article is published on: 4th February 2025
Looking forward to 2025
Another year and another wonderful Spectrum conference. More on that in a moment.
Last year, in Budapest, was my 20th conference with Spectrum after which I offered a fairly cautious outlook for the year to come. You can review my thoughts in The view from the Danube
I have now just returned from a superb four days in Casablanca, hence the name of this piece, which was our first ever conference outside of Europe. We had another great group of experts who shared their views on the key themes likely to shape 2025. From the future of US markets under Trump 2.0 to opportunities in bonds and the transformative power of AI; here’s a summary of the insights most relevant to your investments and financial goals. Overall I feel cautiously optimistic looking forward to 2025.
Even with the slightly pessimistic outlook for 2024, the US stock market had an exceptional year, with the S&P500 delivering one of its strongest performances in history, though much of this was led by a small handful of stocks.
As we look to 2025, several factors suggest US markets could remain a standout:
Momentum: The US economy grew by 3.2% in 2023 and is forecasted to grow 2.8% in 2024, showing resilience despite high inflation and interest rates.
Earnings Growth: US companies are projected to achieve earnings growth of 13.8% in 2025—significantly higher than the 7.4% forecast for European companies.
Profitability: The US has long maintained a profitability edge over other developed economies, and Trump’s deregulation efforts could further enhance competitiveness.
Structural Advantages: Energy independence, favourable demographics, and leadership in technology (particularly AI) continue to position the US ahead of its global peers.
With the Republican Party securing a clean sweep in the 2024 elections, President Trump is expected to have more freedom to implement his policies in his second term. Here’s what investors should consider:
Bonds are regaining their appeal:
Attractive Yields: UK gilts are offering a 5.5% yield, equivalent to a real return of nearly 3%, presenting an appealing alternative to equities, especially in Europe.
Diverse Opportunities: Investors are also finding value in international bonds, including those from Portugal, Romania, and Germany.
Volatility Awareness: Bonds have become as volatile as equities, underscoring the need for a well-diversified portfolio.
The AI revolution is driving innovation and creating new opportunities across industries. It is important to consider those companies who will be enabled by AI and who will earn from “enabling the enabled” as well as those companies supporting the infrastructure of AI.
Key investment areas include:
Data Ownership and Infrastructure: Companies like RELX (legal and medical data) and Equinix (data centres) are poised to benefit from the AI boom.
Efficiency Gains: Firms such as Rentokil and Waste Management are leveraging AI to optimise operations and drive growth.
Cloud Infrastructure: AI can’t happen without the Cloud.
Understanding and managing risk is critical to achieving long-term financial success. I will be writing a newsletter in the coming months focussing solely on ‘risk,’ but for now here are key considerations:
Inflation remains sticky: The risk of doing nothing could erode your cash’s value over time.
Volatility: Short-term market fluctuations are normal but tend to even out over time, emphasising the importance of staying invested.
Longevity: For couples, there’s a 50% chance one partner will live to age 90—making a long-term income strategy essential.
Sequencing Risk: Timing withdrawals during retirement requires careful planning to avoid depleting your assets prematurely.
With markets adapting to new norms, a balanced and diversified approach remains crucial:
US Market Focus: While US equities remain a core component, avoiding over-concentration in sectors like AI is vital. Just 7 companies make up 33% of the S&P 500 index and contributed 55% of all the returns of the S&P500 in 2024 – the largest concentration in history.
Employ Active Managers: Passive investors have had a great run, especially if invested in US equities but as we have already seen this month the AI Titans have sold off on one piece of news from China. Active managers will control these concentration risks.
Global Bonds: High yields make bonds an attractive addition to portfolios, particularly for those seeking income and stability.
Alternative Investments: Assets like gold can provide a hedge against geopolitical risks and inflation.
I would very much like to thank the investment management teams at RBC Brewin Dolphin, Rathbones Investment Management, Evelyn Partners, New Horizons, Alquity Investments, VAM Funds and Prudential International for their time and expert views for the content in this update.
Here are some links to other articles supporting this summary if you want to dive deeper into the details:
US Continues to Outperform https://www.evelyn.com/insights-and-events/insights/can-us-outperformance-continue/
A look back on 2024 https://www.evelyn.com/insights-and-events/insights/2024-investment-review-ifa/
Trump 2.0 https://www.lgtwm.com/uk-en/insights/market-views/trump-politics-the-global-order-250934
The excellent monthly Rathbones Sharpe End Podcast https://www.rathbonesam.com/uk/sharpe-end-podcast#podcasts
By Peter Brooke
This article is published on: 2nd November 2024
On November 3rd, Peter Brooke from The Spectrum IFA Group will proudly run with The Run for Hope Team in the Nice-Cannes Relay Marathon. For years, Peter and Spectrum have embraced this challenge, raising awareness and funds for a cause that deeply resonates with them.
The Run for Hope team, is a partnership between Mimosa and Cancer Support Group 06, brings together a community of runners from beginners to experts, inspiring teamwork and fun to raise funds for cancer support by running in the Nice-Cannes Relay Marathon. Participants enjoy comprehensive training, support and a festive after-party, all contributing to a great cause, the support of cancer patients on the French Riviera.
As experts in financial planning for English speaking expatriates living in Europe, The Spectrum IFA Group provides comprehensive and personalised financial advice, and planning. Peter, who has been with Spectrum for 20 years on the French Riviera understands the complex financial and tax issues his clients face and he and Spectrum are dedicated to helping you navigate these challenges.
By participating in the relay marathon, Peter and Spectrum demonstrate their commitment to the broader community on the Côte d’Azur. Supporting The Run for Hope Team allows them to blend their professional expertise with their passion for making a difference. Cheer on Peter and the whole Mimosa team as they run for hope, showcasing the same dedication they bring to managing your finances.
Together, we can achieve great things—both on the marathon route and in your financial journey!
The Spectrum IFA Group: Running for Hope, Running for You!
By Peter Brooke
This article is published on: 28th July 2024
Following my outlook in January I am writing with a quick update on the year so far and a look forward for the rest of the year and into 2025.
One important point I would like to make is that many global issues, especially Politics and the outcome of the many elections we have in 2024, might feel very important to us on a day-to-day basis but might have a very different impact on investment markets and so do please read the following through the lens of investing.
Global equities have been performing well, with US equities gaining 15% in the first half of 2024, led by companies like Nvidia, Microsoft, Alphabet, Amazon, Meta, and Apple, which contributed significantly to market progress.
The economic outlook indicates that the global economy is expected to grow by 2.6% in 2024, with improved growth prospects in the US and China due to factors like loose fiscal policy, immigration, and government stimulus programs.
Market ‘breadth’ has been a concern, with the above five technology stocks driving over half of the returns in the US market; as global growth continues this should lead to opportunities in other sectors like industrials that are connected to the Artificial Intelligence theme; very recently we are starting to see a broadening of market returns.
Market risks related to inflation and interest rates are expected to shift to a positive tailwind in the second half of the year, which should be good for both shares and bonds. Central banks, like the European Central Bank (ECB), are already cutting interest rates and others are likely to follow suit.
Here is a chart of four different Risk Benchmarks and the main UK and US Stock markets so far in 2024; steady, but the US continues to serge ahead… for now.
Inflation hasn’t yet returned to pre-covid levels and is unlikely to drop back this much any time soon. Goods, energy and food inflation have all fallen but services inflation is still high, though this has started to fall slightly in recent weeks. ‘Services’ includes ‘shelter’ e.g. rent and other services such as hospitality.
Interest rate cut forecasts from the ‘experts’ have see-sawed so far this year but the current consensus view is that the first US interest rate cut should now be expected in September. The ECB has already started cutting rates, very slowly, and UK rate cuts might be pushed out into 2025 as services inflation in the UK remains ‘stickier’ than elsewhere.
Elections do pose sporadic risks to markets, though normally election results don’t truly matter in the longer term; but with the huge volume of elections this year and the swings from left to right (and back again) the volatility caused by the outcomes of elections will probably have much greater short-term impacts than normal.
US – The upcoming election is a key risk, with potential market volatility depending on the election result, especially following the attempted assassination of Donald Trump and the withdrawal of Joe Biden.
If Kamala Harris is selected as the Democratic candidate then Democratic party policies are likely to remain unchanged and so volatility in markets could be short lived, but if they enter the time consuming process of selecting a different candidate (increasingly improbable at the time of writing) then the inevitable political uncertainty could drive US share and bond volatility for longer.
According to the polls and bookmakers the Republicans are now more likely to win, but what might that mean for investors? Potential tax cuts, more deregulation, more protectionism and more oil drilling could be good for US corporate profits and might help bring down inflation. This might not be great for the planet and society but could be good for business.
In addition tariffs on goods entering US from China (and the rest of the world) could add to the short term inflation problem.
Europe – there has been a backlash against various EU led initiatives, like climate change policy and immigration leading to a swing towards the right in many countries.
France – President Macron called a snap election as the Far Right were gaining traction in EU elections; several left wing, centrist and right wing alliances formed as tactical voting led to a deadlock. The major coalition is now on the left of the house which is probably negative for French investment returns but any law changes are very unlikely for at least 12 months when another round of elections is expected.
UK – the new Labour majority government was not a big surprise with ‘time for change’ as a leading driver; but will they be able to do what they said they would do? So far they remain quite centrist and don’t appear to be planning on drifting back to the ‘old labour’ way. They are likely to be more fiscally responsible and will target growth BUT can they actually do it as the challenges are significant and the budget is tight – for example the demands on the NHS and the hot potato of immigration.
There might, however, be a big shift with the relationship with Europe, which must be positive for both sides, especially with respect to defence, cybersecurity and trade and even more so if the US becomes more self protectionist under Trump.
Here are some thoughts from our friends at Moneycorp:
As many predicted the Labour Party secured a strong majority, and the FX markets remained relatively stable. We’ve seen GBP strength, with GBP/USD rising by 1.7% and GBP/EUR up by 0.8%.
The French election results, however, were unexpected. We had anticipated significant market movements, but the outcome has been a 3-way hung parliament, with all other parties joining forces to prevent the far-right Rassemblement National (RN) from gaining power. This situation suggests potential political turmoil in France for at least the next 12 months until another election can be called. This is not a favourable outcome for President Macron or Europe as a whole. Despite this, the FX markets have remained stable, as the EUR had already weakened prior to the election.
Inflation data and interest rates continue to be the primary drivers of the FX markets.
Here is a Forecast Snapshot of where the banks think FX markets will be at the end of Q3 (30th September).
GBP/USD
Current 1.2840
Barclays 1.28
UniCredit 1.26
Wells Fargo 1.26
BNP Paribas 1.27
GBP/EUR
Current 1.1860
Barclays 1.22
UniCredit 1.16
Wells Fargo 1.19
BNP Paribas 1.20
EUR/USD
Current 1.0825
Barclays 1.05
UniCredit 1.08
Wells Fargo 1.06
BNP Paribas 1.05
I am, once again, very grateful to the teams at Evelyn Partners, Rathbones, New Horrizons and Moneycorp for their help in putting this summary together and hope it is useful in framing where we are today and how we got here.
Here are some further links to supporting views on the above:
https://www.evelyn.com/insights-and-events/insights/investment-outlook-july-2024/
https://www.rathbonesam.com/knowledge-and-insight/review-week-biden-bows-out
https://www.rathbonesam.com/blog/guess-whos-back
If you listen to podcasts I can highly recommend the Sharp End Podcast from David Coombs at Rathbones Asset Management
As always, please remember that financial decisions should be made with careful consideration of individual circumstances and professional advice, I am here to support you.
If you have missed any previous news and updates these can all be found on the archive page here.
I am away on holidays until 5th August but if you have any questions or need further assistance, please feel free to reach out via the below channels, or the booking system – always drop me a quick message if you need a time slot outside of those available.
For now, have a great day, and a wonderful summer
Best regards
Peter Brooke
By Peter Brooke
This article is published on: 9th July 2024
… why, what and how …
Whether you are an existing client of mine or not, and following on from my previous article on ‘The Value of Seeking Financial Advice’, I wanted to take this opportunity to go through the steps in our ‘Client Financial Review Process’.
WHY?
Firstly, and most importantly, it’s crucial to regularly check in on your financial journey, ensuring that we’re on track to meet your goals.
Secondly, we have a regulatory obligation to conduct a review at least once per year for all of our clients, whether this is in person or remotely.
Thirdly, we have a relationship which is built on trust and my understanding of, often, very personal details, so a regular catch up is a great way to nurture this relationship and ensure important issues are raised and discussed; and its a good excuse for a cup of tea and a biscuit [even if via Zoom].
WHAT?
A review won’t just be looking at what has happened over the last year but is designed to identify potential financial planning adjustments we might want to make if your circumstances are changing.
The review should, and will, include the following:
HOW?
Many of my clients have been through this review process over the years but I have made a few tweaks and so I wanted to take you through the steps.
The biggest change for us is that I will be asking many of my clients to update their situation directly onto the Secure Cash Calc Portal prior to our review, so I have the most up to date information in advance. This will give me a chance to review your situation before our meeting to ensure we get the most from our time together.
Of course it is not obligatory to use the portal as it is not appropriate for everyone, but if you would like to then do let me know.
The following summary explains each step.
Options for you…
The above summary is focused on the normal Face to Face or Zoom meeting review process, but I can also provide your review as an email or I can even record a video presentation of my update on your portfolio and cash flow plan which you are then free to watch at your leisure; then we can discuss any steps necessary and update any administrative requirements afterwards.
Please do let me know if you prefer to have an email or video review?
As you can see, it’s a collaborative process and financial reviews are a great way to check-in on how things are going and where adjustments need to be made, so if your situation changes, please don’t wait for the next review, get in touch and we can review early.
If you have any questions please use the the below channels, or the booking system – always drop me a quick message if you need a time slot outside of those available.
If you have missed any previous emails, click here to access the Archive.
For now, have a great day,
By Peter Brooke
This article is published on: 20th June 2024
I have worked with many of the panelists for a number of years and their knowledge and experience is valuable to me and my clients; so if you are looking at buying and/or relocating to France then please join us for this live webinar.
Our experienced panelists are here to discuss all nature of topics to do with buying and relocating to France:
Karen Tait – Webinar host
Peter Brooke – Wealth & tax planning from The Spectrum IF Group
Joanna Leggett – French Property Expert from Leggett
Jonathan Watson – Currency Expert from Lumon
Paulette Booth – Banking and insurance expert from AXA
Tracy Leonetti – Visa & paperwork expert from LBS
Sharon Revol – Mortgage expert from Cafpi
By Peter Brooke
This article is published on: 26th March 2024
The personal financial advice industry has often been regarded as a home for insurance salesmen in shiny suits or as an out-of-reach luxury for the very wealthy. It hasn’t helped with various mis-selling scandals over the years and high levels of hidden fees, but after 25 years in this industry I wanted to make the case as to why we are not all the same and show what true value can be taken from seeking professional advice.
Fortunately, our industry has changed a lot over those 25 years and transparency, communication and ‘putting the client first’ have now become the values most of us live and work by.
As a little background, I wanted to be a Vet or a Doctor when I was at school, I loved science and maths but didn’t truly focus enough on my A-Levels and was found wanting when it came to getting into Medical School. I ended up studying Molecular Genetics at Sussex University but discovered that I also didn’t want a life in a lab. As a ‘frustrated Doctor’ I ended up in Pharmaceutical Sales… great fun as a young man straight out of Uni but it became a very demoralising job and one which I discovered was really all about making money, not helping people.
I was encouraged by a family friend to look at stockbroking or financial planning as a change of track and started work in 1999 (dot com!!) at an investment advisory business in London. We introduced the UK’s first ‘advisory-discount’ services where we would provide personalised investment recommendations at discounted fees.
Ironically, it took moving to an industry that concentrates solely on money to realise that I could actually help people achieve wellbeing and peace of mind through my abilities to discuss and explain complex issues.
In 2004 I moved to France and started working with The Spectrum IFA Group, helping English speaking expatriates to create and realise their plans for living in France, I have been here ever since. I especially wanted to join a fully regulated company which gave me the independence of my own business and together we have grown to where we are today – 50 advisers operating across Europe, in France, Spain, Portugal, Italy, Luxembourg, Malta and Switzerland.
I believe our true value lies in helping our clients answer two main questions:
1. Am I going to be ok, financially, and if not, what do I need to do to make sure I am?
2. What have you, as my adviser, done for me?
The first question is the core of a good adviser’s skill set and business strategy – it is all about helping identify and plan for different stages of life. Correctly laying out a ‘roadmap’ for the future and asking the difficult questions; this can truly provide the peace of mind that you, as my client, are on target, and if not what do we need to change or compromise on to ensure you get there.
This roadmap then needs ongoing reviews, especially as life throws various obstacles at us along the way.
The second question is the ‘HOW’ of the first question. Historically we have valued good advice, and what we pay for it, as a percentage measurement of investment performance, which the adviser actually has minimal control over.
I believe it is more nuanced than this and can be broken down to six key areas in which we can (and should) add value and help answer that first very important question:
We help to bring order to your financial life by assisting setting budgets and cash flow targets as well as overseeing and reviewing investments, insurance, estate plans, taxes, etc.
We are a sounding board to help you follow through on your financial commitments, by identifying and prioritising goals, and then explaining, in plain english, the steps to take, and then regularly reviewing your progress towards them.
We offer insight from the outside to help you avoid emotionally driven decisions in important money matters; we are available to consult with you at key moments of decision-making, providing the necessary research to ensure you have all the information to make the best choices.
We help you anticipate life events and changes and be financially and emotionally prepared for them. We can help in creating, ahead of time, the action plan necessary to address and manage any life transitions that inevitably appear.
We explore what specific knowledge will be needed to succeed in your plans by understanding your situation and then providing the necessary resources to facilitate your decisions, and explaining the options and risks associated with each choice in a clear and simple manner.
We aim to help you achieve the best life possible but will work with you, not just for you, to make this possible. We will take the time to clearly understand your background, philosophy, needs and aspirations and will work collaboratively with you and on your behalf (with your permission, of course).
For me, helping people is at the centre of my personal values – being paid to do this is a welcome bonus and I have long believed that our jobs find us, not the other way round. I have always been a bit of a ‘planner’ and see ‘the big picture’ in most situations – helping people see that ‘they are going to be ok’, or explaining ‘what they need to do to get there’ is a truly pleasurable challenge for me.
I firmly believe my clients get value for money. In Europe we are not regulated to handle client money so will never send you a bill for you to pay us directly.
Spectrum is remunerated by the insurance or investment company which provide the final financial solution to you and with whom you have a direct relationship, with us ‘appointed’ as your adviser.
I believe in transparency of all costs and charges so you know exactly what you are paying and to whom. Our charges are competitive, we only use clean share classes of funds so there are no hidden or double fees.
I live and work in a community of English speaking expatiates where referrals and recommendations count for a great deal. I always feel very proud and grateful when an existing client refers me to another family member or friend who might be able to benefit from the services that I offer. So thank you for trusting me with them and I look forward to helping more in the future.
If you know someone who might need our services, feel free to get in touch and forward them this email – the link above can be used to book a 30 minute call with me directly. If I can’t help then I may be able to direct them to someone who can.
If you have any questions or would like a catch up then please use any of the below communication channels or the booking system – always drop me a quick message if you need a time slot outside of those available.
For existing clients the CashCalc secure portal is a great place to update any information, send me documents or even a direct secure message.
If you have missed any previous emails, click here to access the Archive.
By Peter Brooke
This article is published on: 4th February 2024
2024 marks my 20th year as a financial adviser at The Spectrum IFA Group and I am lucky to have been invited to every one of our annual conferences since I joined in June 2004. Last week more than 40 members of the Spectrum family got together in the beautiful Hungarian city of Budapest for our latest conference.
We are always delighted and grateful to welcome excellent external speakers from some of the big investment and insurance firms we work with throughout the year who share their wisdom (and/or best guesses) for the months and years ahead; it was therefore an ideal time for me to pick brains over some goulash and a glass of wine and bring you some considered observations for investing in 2024.
But before looking forward, let’s look at how we got here.
2022 was a very tough year for investors with the hangover from the Covid pandemic and the war in Ukraine creating a perfect inflation storm which led to the most aggressive interest rate hiking cycle in over 40 years. This significantly depressed bond and share values.
Through 2023 there were four distinct periods of rhetoric and market behaviour… it started with the Artificial Intelligence (AI) “revolution” and a huge rally in the “Magnificent 7” stocks in the US, then attention turned to likely recession… but was it going to be a “soft or hard landing” and then a considered period of ‘is this the end of inflation?’ followed by a change in attitudes to try and guess when the first interest rate cuts would start… we even ended the year with a ‘Santa Rally’ in global stock markets…. confusing times!
“Anyone who isn’t confused really doesn’t understand what’s going on!”
Most of the investment managers we spoke to last week had the same view on these sorts of questions…
Politics rarely has a material long term effect on investment returns but can create short term uncertainty and opportunities – be active and don’t get caught up in the hype!
Recession
The consensus view is that we will probably avoid a hard recession, especially in the US, which is still the most important economy on the planet. US households still have high levels of savings and long-term debt structures, so aren’t too affected by higher short term interest rates; unemployment remains low and the ‘Inflation Reduction Act’ is still pumping money into the economy.
However, there is a case for a hard landing with some indicators predicting one, but we live in a world of probability and not certainty and this is changing constantly.
“Don’t be too pessimistic but remain cautious … and don’t be too optimistic… anyone still confused?”
We are at the end of the inflation cycle now and so interest rates are likely to start being cut in May (US) and June (Europe). This will be good for bond values, so don’t sell them now.
Artificial Intelligence will destroy some businesses and will make some very profitable. “It’s like internet 2.0”. It is also unlikely to be the companies that ‘started’ the AI revolution which will do best from it… it will be the companies who best embrace it and who create the infrastructure for it, that will profit most.
Demographics – nothing has changed – there are more of us than ever and we are living longer… and the Obesity epidemic is not cured by one or two weight loss drugs, there is a long way to go.
Retreat from globalisation
“Protectionism”/“MAGA”. We are not going back to globalisation and is it a coincidence that geopolitical instability has also increased? The world is a more dangerous place – we must consider greater Geopolitical risk.
So, with all these factors to consider how do we invest for 2024?
Retreat from globalisation = Defence companies and Oil producers, this might not sit well with all investors.
Even with all of the confusing narrative there are some reasons to be positive in 2024:
“Look through the hype and stick to your own personal investment commitments and goals … oh… and employ an active manager!!”
I would very much like to thank the investment management teams at RBC Brewin Dolphin, Rathbones Investment Management, Evelyn Partners, New Horizons and The Prudential for their time and expert views on the content in this email.
If you would like to dive deeper into these subjects please check out the following links:
5 Investment themes for 2024: from Evelyn Partners
Some predictions for the year ahead from David Coombs at Rathbones
If you like podcasts then I highly recommend David Coombs amusing and insightful monthly Sharpe End Podcast
Feel free to get in touch if you have any questions via the below channels, or the booking system – always drop me a quick message if you need a time slot outside of those available.
If you have missed any previous emails, click here to access the Archive.
For now, have a great day, speak soon…
