Why professional advice matters
Every so often I see a series of articles in the press that remind me of why I am in financial services. Recently there has been a spate of articles about bankrupt premiership footballers, one being on the BBC Newsbeat website, http://www.bbc.co.uk/newsbeat/29896728, 04/11/2014.
Newsbeat provided brief details of David James, bankrupt in May 2014, Lee Hendrie, bankrupt in January 2014, Keith Gillespie, bankrupt in 2010 and Eric Djemba-Djemba, made bankrupt in 2007.
All of these men played football at the highest level and in their short playing career received £Millions in income, far more than most UK workers will receive in their lifetime. That this money has now gone will be a personal and family disaster for a number of years to come. These are competitive and highly motivated people, so I would expect them to survive and thrive in the future.
The key to keeping the benefit of early success in sport, music or the media is good advice, covering pensions, investments, taxation and life skills. For many, advice will be dominated by the people around them, agents, accountants and social acquaintances, rather than independent financial advisers, so I am not surprised that a number of bankrupt footballers mention bad property investments, betting and film schemes as an aspect of their financial downfall.
A superficial familiarity with property ownership does not give you the tools required for making a return from property. Just because you live and own a house does not make you predestined to become a successful professional landlord! Investment choices other than direct ownership of property may be a better fit for your needs, although you may not be familiar with the asset class and therefore shy away instinctively.
High worth individuals, like footballers and media stars are often targets for financial chancers floating unapproved collective investments schemes investing in foreign assets away from the control and compensation for bad advice offered by the UK financial authorities. If these go wrong, and most do, your money will be lost forever.
A UK registered Independent Financial Adviser, (IFA), will act in your best interests, take precautions to protect your wealth and be accountable if things go wrong. Bring one into your circle of advisers, to make sure that the basics are done properly and any risks you take are calculated.
Contact me with queries
If anyone is looking for general advice, then please write in to the blog and I would be happy to help with anonymous advice posted here. Alternatively, please call us on 0116 253 5600 and ask to speak to an IFA, (Independent Financial Adviser), for a no-obligation discussion.
If you know you need formal advice, have a look at http://bankfield.net/ or ask around for a recommendation, it might even be me.