Xentum Wealth Management Issue Investment Advise for Older Investors

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A series of high profile miss-selling cases against private and high Street banks has rocked the confidence of elderly investors with many leaving the traditional banking establishments in their droves. Xentum Wealth Management have issued a guidance checklist for older Investors.

I've certainly experienced a significant up turn in enquiries from older investors by both telephone and website compared to the same period last year and I can only attribute it to these latest headlines. I'm not alone, as other contacts within the business elsewhere in the country are experiencing a significant increase in these types of enquiries.

Prompted by a series of high profile miss-selling cases against private and high street banks that have rocked the confidence of elderly investors, resulting in many leaving the traditional banking establishments in their droves. Xentum Wealth Management have issued a guidance checklist specifically aimed at the older investor.

The Financial Services Authority (FSA) has reported 1,809 investment complaints from people aged 65 between April and July this year compared to 4,163 for the whole of 2008 - a trend which would see a staggering 74% increase if it was to continue for the rest of the year. (ref: http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/116.shtml)

Managing Director of Xentum Wealth Management Dominic Baldwin said: "Recent high profile stories in the Press regarding the miss-selling of investment advice to older investors strikes a chord with many elderly people as these kinds of reports become more common place.

Baldwin continues "I've certainly experienced a significant up turn in enquiries from older investors by both telephone and website compared to the same period last year and I can only attribute it to these latest headlines. I'm not alone, as other contacts within the business elsewhere in the country are experiencing a significant increase in these types of enquiries."

We have issued these simple guidelines to help older investors avoid common pitfalls:

  • Encourage elderly relatives to use whenever possible chartered independent financial advisers. Look at fee based professional advice, it doesn't have to be more costly. Be confident that the charging structure is transparent and adds value.
  • Accompany elderly relatives to the meetings. Take time to study the proposals before signing. Do not be pressurised into making decisions.
  • Question the level of risk. This is very subjective, but the general rule is that it's not beneficial for the elderly to commit to medium to long term high risk investments for obvious reasons.
  • Start thinking about Lasting Power of Attorney. This is easier to set up before reduced mental capacity occurs. It allows a friend, relative, or professional to manage an individual's financial affairs and welfare.

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Jo Whittaker
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