In conversation with Ben Murray

What are the best and worst pieces of financial advice you’ve received?

I have been fortunate to receive many pieces of valuable financial advice, but if I had to narrow it down to what I consider the best, I would say; buy assets and not liabilities. Where possible it is wise to spend your money on things that will make you more money in future – rather than cost you money. For instance, instead of purchasing an expensive brand new car, you could instead purchase a slightly more modest one and invest the remainder of the funds.

I also believe it is very helpful to habitually save money from as early in your working life as possible. If you do not grow accustomed to having that extra money in your bank account, you will never miss it and won’t wonder what you might otherwise do with it. Along these lines, save a portion of any pay rises or bonuses you get through the years.

As for the worst, I would say; trying to time investment markets - I have not actually received this as financial advice, but I do hear questions around this often enough to bring it up. Far too many people believe that accurately predicting when a stock, bond or index will rise or fall is the key to building or preserving wealth. Trying to time the market is incredibly difficult, if not impossible, given the myriad factors influencing markets. Quick and unpredictable price falls (or gains) are fairly commonplace and that is why our advice to clients has always been to invest according to a strategy that reflects their risk profile and to remain invested for the long term. Time in the market beats timing the market.

Why is working with female investors of particular interest to you?

It is clear that women are underrepresented in the wealth management industry, and it is therefore perhaps unsurprising that they tend to be underserved. However, this should not be the case. We deal with a large number of joint portfolios and, much more often than not, it is the man in the relationship that deals with the investments. It begs the question of what happens if that relationship ends, through death or divorce for example?

Women are equally capable of managing their finances, but many find themselves unequipped to do so as a result of prior “outsourcing” to their partners. As an industry we should therefore encourage them to be involved and seek to provide services that are as relevant and approachable for them, as they are for men.

How often should I review my portfolio?

Generally speaking, we would catch up with our clients annually and have a more thorough review every second year. I feel that this is a reasonable timescale for individuals reviewing their own portfolio as well. The exception to this rule of thumb would be when something in a client’s life or financial circumstances materially changes. That might warrant an immediate review.

Do any adjustments need to be made when I go through a life event such as getting married, having a child, retiring, etc?

Changes might not necessarily be required, but you should certainly review your portfolio when there are material changes in your life. Perhaps you have others who depend on you financially since you last reviewed your portfolio? Or, following a change in circumstances, getting additional income from your portfolio might be of help? Perhaps you have retired and have become more dependent on your portfolio for your essential spending? Do you need to lower your exposure to risk?

There are many things which could have an impact on how we manage client portfolios, so we always recommend that clients keep us in the loop of any significant changes in their lives and we can help determine whether their investments ought to be revisited.