WHAT IS THE VALUE OF FINANCIAL ADVICE?

Mark Salter CFP, Chartered FCSI, Fort Financial Planning

Research indicates that paying for investment advice generates a better return than not taking advice. The potential value added is in the region of 3% a year – although to be absolutely fair, some aspects are annual and delivered smoothly while other parts are ‘lumpy’, chiefly at times of market euphoria or stress.

The real value of working with a Financial Advisor is in avoiding expensive mistakes. It’s less about picking the best investment and more about making smart decisions with all aspects of your money.

Whilst 3% per year might not sound like much, over time, it can add up to a very big number! Let’s assume that you have £250,000 in investments. In an average year, these investments might grow by 5% per year. Over a period of 15 years, your investments would grow to £495,000.

If you work with a Financial Advisor and achieve the extra 3% per year, the same investment would grow to £734,000, nearly £240,000 more!

So how does working with a Financial Advisor give this added value?

• Asset allocation and diversification – this refers to the percentage of a portfolio invested in various asset classes such as stocks, bonds and cash investments according to an investor’s financial situation, risk tolerance and time horizon. Asset allocation and diversification are arguably the two most powerful tools advisors can use to help with a client’s goals and manage investment risk.

• Cost-effective implementation - every pound spent in charges is a pound off potential returns – when you pay less, you keep more, regardless of whether the markets are up or down. In fact, in a low-return environment, such as what we are currently in, costs are even more important because the lower the returns, the higher the proportion that is assumed by fund expenses.

• Regular rebalancing of portfolios – given the importance of asset allocation in relation to a client’s attitude to risk, it’s also vital to maintain that allocation. A Financial Advisor will review the portfolio objectively and rebalance it as and when required. ffp.org.uk

• Behavioural coaching - most investors understand the importance of remaining disciplined at times of heightened uncertainty. However, very few succeed in staying calm in turbulent markets. Indeed, many end up taking exactly the wrong course of action. A Financial Advisor will act as a voice of reason between you and an expensive mistake. They will provide sound, objective advice, helping you stick to the plan and remain invested.

• Tax management - taxes can be a major drag on investment returns. Selecting the right ‘tax wrapper’ is just as important as selecting the right investment strategy.

• Spending strategy - the number of people in retirement is rising rapidly; many people have both ever-greater options and complications. The order in which withdrawals are taken can significantly influence overall returns. A good Financial Advisor helps you to create a strategy that will work best in your circumstances.

An inevitable conclusion is that expert advice is likely to be of significant value.

Here we go again – once more unto the breach. There’s no hiding that times are tough but fret not, we’ve been here before and together, we can find ways to protect your finances and look to the future. Let’s hatch a plan.

As the age-old saying goes, all good things must come to an end, unless it’s Windows 8 which was never very good to begin with. Microsoft seem to have had a little trend over the years of having released some really great operating systems like Windows XP, Windows 7 and (believe it or not) Windows 10! They have also had some absolute shockers, Windows Vista, Windows 8, Windows 8.1 and the jury is still out on Windows 11…

Now the reason for this month’s topic is that Microsoft, in their wisdom, sent out a nice big notification to everyone currently using Windows 8 or Windows 8.1 that their software was coming to an end on 10th January 2023 and therefore could not be used after this time. I have been very surprised by the number of Windows 8 machines I have had come in following that announcement.

Now the way that this is being marketed by Microsoft is by implying that your actual computer is at the end of its life. This is not the case. It’s not a secret but I’m pretty sure if you phone Microsoft, they wouldn’t tell you this. They would most likely say that you need to pay for a Windows 10 licence or to buy a new computer. You can do this of course, but what they wouldn’t tell you is that you can also upgrade your machine to Windows 10 using

WINDOWS 8 AND 8.1 END OF LIFE

James Flynn, Milborne Port Computers

your Windows 8 license for free! You would have to do this yourselves or, of course, you can pay for someone like us to do this for you. In theory, using a couple of PC tools and Microsoft installers the system should be able to be upgraded with all your files and programs to Windows 10. Sometimes however this isn’t the case and then a blank copy of Windows 10 will need to be installed on the computer and your files restored from a backup. If you didn’t want to upgrade to Windows 10 on your old machine and wanted a new computer, you’ll then need to transfer the files and programs from your backup to that new computer as well.

Now what if you want to stay on Windows 8? Well, it’s not an option I would recommend but then we do still have some customers on Windows 7! If you really wanted to stay on Windows 8 then you would need to make sure that you have upgraded via Windows update to Windows 8.1 and then make sure that all the Windows updates for that are completed. I would then recommend that you have a 3rd party anti-virus like ESET, AVG or Norton to protect against viruses.

As ever, if you need information or help you know where to come!

computing-mp.co.uk

Free registration appointment for new clients when accompanied by this advertisement

T: 01935 813288 (24 hours)

E: sherborne@kingstonvets.co.uk

The Red And Grey Holdall

Jenny Campbell, Sherborne Scribblers

The man grabbed the boy’s holdall. ‘Time to go,’ he said. Instinctively, Andriy tried to snatch back his father’s old grey and bright red sports bag. He could still feel the warmth of his mother’s fingers on the handles after she had pushed him out of the house saying, ‘Go! Go, my darling boy! And be brave for your papa and for me. We will see each other again soon.’

Even as the door closed behind him the sky exploded with a harsh light in the darkness. White smoke rose in the air and he heard the sounds of shattering glass from a distant building and the crashing thud of the rockets. Within seconds, the man had scooped up the boy and his bag and bundled them into the back of a waiting car, its doors open and the engine running.

‘Mama! Mama!’ screamed Andriy, scrabbling to try and get out of the car. But he had heard the soft, metallic click of the locks and now pressed his face against the window, desperately looking for a curtain drawn back, a chink of light and his mother’s face at a window. But the house remained in darkness, as did those of all the others in their street. Andriy was ten years old and, now, for the first time in that short life he experienced a helpless fear and hugged the bag to his small body until it dug into his ribs.

‘You all right in the back there, son?’ said the man.

‘Yes,’ whispered Andriy. The holdall’s bulk and familiar canvas smell calmed him a little. It had always contained his father’s tennis clothes and racquets – he was a local champion – and it was as if this ordinary association still lingered in the bag. The boy held it more comfortably in his lap before asking in a voice that trembled only slightly, ‘Do you know my father?’

‘Oh, everyone knows Grigory! He’s the best soldier in Ukraine and when I return to the front next week I will tell him what a brave young man his son is.’

‘You will see my papa?’ said Andriy, all fear gone in the excitement of learning that this stranger not only knew his father by name but that he would be joining him soon.

‘Yes, and he especially asked me to make sure that you and your mother were safe, away from the bombing.’

‘Then why is she not coming with us?’ said Andriy. ‘What if the bombs come to our street? She could be killed.’

Glancing in his rearview mirror as he drove, the man could see the tears welling up in the boy’s eyes and the terrible confusion on his face. It pained him more than he could have imagined and he thought of all those children in his country being separated from their families, not knowing what was happening to them or where they were going.

‘Your mother will be safe. I’ll see to that,’ he said. ‘And when this war ends, well, your father would not like to come home to an empty house, would he? Besides, she needs to be there so that she can tell him to come for you.’

Sniffing, it took a few moments for Andriy to register this explanation. Then, and with that swift change of subject to which small children are prone he said, ‘Is it long to Poland?’

‘A couple of hours. Now, why don’t you put your head down and try to sleep for a while. There are some blankets on the seat beside you. Are you hungry? I’m sure your mother will have put something in the holdall for you.’

Andriy shook his head. He was, however, very tired; and he lay down on the seat, covering himself with the blankets, using the holdall as a pillow, and looking up at the stars in the sky. They were in open country now, and in the car’s headlamps, he glimpsed the occasional flash of a silver birch tree and darkened farmhouses. He thought of the new country he was going to and his Polish aunt Malgosza whom he had only met once at a family wedding. She was married to his father’s brother and they had a son who was just a little older than Andriy. Perhaps it would not be so bad in Krakow. He closed his eyes, one arm cuddled around the holdall in which he now buried his small head. And, then, he slept.

The

‘The

THE GARDENS OF MARS: MADAGASCAR, AN ISLAND STORY

JOHN GIMLETTE

John Gaye, Sherborne Literary Society

Travel writers come in many forms as will be very clear to those attending the Sherborne Travel Writing Festival in April. The late Dervla Murphy approached all her travels from the angle of extreme low cost and hard living; so to an extent does Colin Thubron. Like the others, Bill Bryson focuses on understanding the people of a country and their typical characteristics but I have always assumed from rather more comfortable surroundings. But all good travel writers, however they approach their travels, illuminate not just the geographical surroundings they witness but so also the character of the people they meet, their history and the influences that have affected their lives. John Gimlette does this in his own unique way, setting out to talk to a complete cross-section of the population and drawing out the humour and the pathos of all he encounters.

For all his books he tends to visit locations less well travelled of late but no less interesting for that. He also travels slowly and writes perhaps more than others in depth about the particular country he is focussing on. His previous books have included travels to Paraguay, Newfoundland and Labrador, Guyana and Sri Lanka. His latest book, The Gardens of Mars, is focussed on Madagascar, the world’s fourth-largest island and one of the planet’s most fascinating and varied lands. Probably best known for its lemurs and extraordinary Baobab trees, it houses probably more endemic species totally unique to the country than anywhere else, which is rather in contrast to the makeup of its people whose origins are extremely diverse.

The joy of Gimlette’s writing is the depth of knowledge he acquires and passes on to the reader, in particular putting the historical context into what he witnesses from his 21st-century viewpoint. There is so much more to Madagascar than lemurs and Baobabs and, having read this book during lockdown, this island of contrasts has immediately risen to the top of my list of destinations to visit. Beware – John Gimlette’s wonderful writing, his dry sense of humour and, not least, his extensive research both on the ground and from his reading references can so easily entice you to follow up the book with a visit. But even for the armchair traveller this book will make you feel that you have spent some real quality time on the island. John Gimlette is one of our best living travel writers and this book is one of his best.

Friday 14th April

17:00 – 18.00

19:00 – 20.00

John Gimlette - The Gardens of Mars: Madagascar, an Island Story

Sophy RobertsThe Lost Pianos of Siberia

Saturday 15th April

11:30 – 12.30

12.30 – 14:00

14:00 – 15.00

15:30 – 16.30

17:00 – 18.00

19:00 -20.00

Philip Marsden - The Summer Isles, A Voyage of the Imagination

Tea with the Authors

Anthony Sattin – Nomads, The Wanderers that Shaped our World

Justin Marozzi - The Arab Conquests

Sara Wheeler - Glowing Still

Colin Thubron - The Amur River

Sunday 16th April

11:30 – 12.30

12.30 – 14:00

14:00 – 15.00

15:30 – 16.30

John Blashford-SnellFrom Utmost East to Utmost West

Tea with the Authors

Rory MacLean & Demi AnterBowie in Berlin

Jay Griffiths - Elemental Journeys

Friday 14th April 5pm-6pm

John Gimlette - The Gardens of Mars: Madagascar, an Island Story

Sherborne Travel Writing Festival

Powell Theatre, Abbey Road, Sherborne DT9 3AP

For tickets and information visit sherbornetravelwritingfestival.com

Tickets and information: sherbornetravelwritingfestival.com