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BUSINESS FIRST June\July 2012 www.businessfirstmagazine.co.uk


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The other obstacle is the commonly- held belief that there must be a high cost to switching funds, which is what being an active investor involves. This is another fallacy perpetuated by the industry. There are many very good trading platforms which make little or no charge for switching between funds. Money Which recently did a review of such platforms, with Interactive Investor, Fidelity and Hargreaves Lansdowne among those receiving very favourable comment.


At the core of what we do is a belief that when people start to understand some of these basic principles for themselves, they will have more power, more control and more money. For instance, how many people understand the power of compound interest? I believe that Sir Isaac Newton said that it was the second greatest force after gravity. We would like to help more people understand how that force can be used for their benefit rather than that of other people. In the long run it must be good for the country.


Douglas Chadwick, in Salty Dog mode


education and access to a continual flow of accurate, up-to-date information. Investing ISA and SIPP money has some very simple principles that should be followed to be successful. First, invest time in studying the numbers to select a good fund in a sector that is rising. A fund or a sector is either performing or it is not. If it is not, and you decide that it is unlikely to do so in the near future, then exit stage left and move on to more productive funds and sectors. That's not rocket science, it is simple common sense. Obviously, it is not quite as simple as I have made out but it is far and away easier than the financial industry would have you believe.


There is an inbuilt resistance to managing one’s own money, borne of decades-long spin from the industry that only professionals know how to work this magic. Perhaps we like to have someone else to blame when things go wrong. It’s easier to kick one’s IFA than oneself. Indeed, I have known people accept losses quite happily, blaming it on their incompetent IFA. Can we have the best of both worlds, an IFA who can invest the Salty Dog way? Technically, yes, but it does take time on a case- by-case basis. Time they may not have.


What do you think? Is this heresy or does the financial services industry need to wake up and start doing better by its customers? To have your say, visit our web site www.businessfirstmagazine.co.uk, where this commentary will be featured, and leave a comment. If you would prefer to have your comments published as a Letter to the Editor, please email info@businessfirstmagazine.co.uk


BF


‘IT’S EASIER TO KICK ONE’S IFA THAN ONESELF.’


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