Chances are that if you work as an independent financial adviser at any level and in any setting, you’ll be familiar with the usual Monday morning flurry of calls from concerned clients. This of course stems from the fact that vast swathes of the population tend to spend far more time over the weekend reading the news and getting up to speed with current financial affairs, which never fails to bring to light a wide variety of questions, concerns and queries.
This weekend, the topics that seemed to take precedence in the financial news centred aroundfreedoms and profit warnings. So just in order to give the proactive independent financial adviser a heads up, here’s a quick overview of three things you may find yourself being quizzed about by a rather sizable handful of clients over the coming days:
First up, it is extremely likely that you’ll find yourself speaking to clients over the next few days with rather pressing concerns with regards to accelerating profit warnings. Over the weekend, one of the most notable stories was that of the way in which UK-listed companies are currently in the midst of one of the biggest spikes in quarterly profit warnings in years. In fact, there hasn’t been a bigger increase in quarterly profit warnings since the darkest depths of the financial crisis back in 2011. Global market volatility once again found its feet in Q3, resulting in profits taking a quite enormous knock. According to one report from the Sunday Telegraph, a 40% increase in the number of firms posted profit warnings was noted in the third quarter – a total of 79 firms.
Suffice to say therefore, any of your clients with a strong dependence on dividends will likely be in touch for advice.
Another headline over the weekend that will undoubtedly spark fear and fluster in a fair few of your clients was that of potential pension freedom problems. In this instance, concern came courtesy of a report published by The Independent, which documented the woes of one seemingly unfortunate individual who ended up losing a fortune due to pension access restrictions. The headline read ‘I wanted access to my savings but delays cost me £20,000′ which pretty much explains all that needs to be said about the article’s content.
The long and short of it therefore being that any of your clients who happen to be retirees who wish to gain access to their savings as quickly as possible may be somewhat perturbed by this tale of terrifying loss.
Hunting For Income
Last but not least, The Mail published a story that some of your clients will undoubtedly have read into with great interest, detailing 18trusts paying 4% or higher dividends, with close to two-thirds being available for purchase at discounted rates. The report revealed that only 18 trusts with a value in excess of £80 million offer 4% or greater yields – the 8.6% dividend yield of BlackRock World Mining being the biggest of all.