Podcast Summary
Celebrate Mother's Day with a thoughtful gift from Blue Nile or invest in a digital financial advisor.: Express love with Blue Nile's pearls and gemstones or try a digital financial advisor for personalized financial advice.
This Mother's Day, express your love and appreciation for the extraordinary women in your life with a thoughtful gift from Blue Nile. Their exquisite pearls and mesmerizing gemstones are sure to impress, and you can enjoy fast shipping options with guaranteed free shipping and returns. Meanwhile, for better sleep, consider the Sleep Number Smart Bed, which lets you individualize your comfort for a more restful night. And if you're looking for financial advice, you might consider trying a digital adviser, which can provide suitable advice through chatbots and robo-solutions, even though it's not provided by a human being in person. In the world of finance, Damien Fantato from Feet Advisor explains that the average age of financial advisors is around 55, and some companies are addressing this issue by using technology to provide regulated advice through digital means. Damien himself tried out the MyEva solution from Wealth Wizards and found it to be an interesting experience.
Revolutionizing Personal Finance with Chatbot Apps: Chatbot apps like Myeva and Multiply make managing finances easier and more engaging with simple sign-up, personalized advice, and human-like interaction. Regulated by Financial Ombudsman Service and FSCS, these apps employ financial advisors to ensure suitability and offer advice on cash buffers, debt, wills, and benefits.
Technology is revolutionizing the way we approach personal finance, with chatbot apps like Myeva making it easier and more engaging for users to manage their finances. These apps, such as Myeva and Multiply, use simple sign-up processes and interactive features to ask users questions about their financial situation and provide personalized advice. The use of emojis and human-like interaction adds a unique touch. However, these apps are still in their early stages and provide regulated financial advice, ensuring clients are protected by the Financial Ombudsman Service and Financial Services Compensation Scheme. Companies like MyIVA and Multiply have invested significantly in the development of these services and employ financial advisors to check the suitability of the advice given. While some advice is straightforward, such as building a cash buffer or paying off debt, other advice may be less obvious, such as writing a will or finding out about death in service benefits. These apps could be particularly appealing to younger people who prefer interacting with technology rather than visiting an advisor in person. Despite the progress made, the development of these services has taken a long time, demonstrating the seriousness with which companies approach providing regulated financial advice.
New financial platforms for young professionals: MyEva and Multiply offer free advice, charge fees for implementation, and provide essential financial guidance and tools for young professionals to boost pension savings and explore investment options
MyEva and Multiply are new financial platforms designed to help young working professionals boost their pension savings and explore investment options. These services offer free advice but charge fees for implementation, a model known as contingent charging. The platforms aim to make financial decisions transparent and accessible, with options ranging from low-cost tracker funds to retirement advice reports. Employers currently cover the cost, but individuals can also subscribe for a monthly fee. Financial advisers, who typically work with clients who have more complex financial situations, generally view these platforms as complementary rather than competitive. MyEva and Multiply cater to individuals starting from scratch, providing them with essential financial guidance and tools to build their savings and investment portfolios.
Clients seek clarity from financial advisers amid economic uncertainties: Clients are anxious about potential market crashes, policy changes, and tax increases, seeking guidance from financial advisers during uncertain economic times.
Wealthy clients are currently engaging in deep conversations with their financial advisers about economic uncertainties such as Brexit and elections, with a growing concern for potential market crashes and tax increases. Alastair Fullerton, co-founder of Laith and Co, a wealth adviser based in London, shares that clients are seeking clarity and are anxious about the potential impact of political events on their assets. The upcoming election in December is a significant marker for many, as they anticipate potential market corrections or policy changes that could significantly affect their finances. Despite the uncertainty, advisers like Fullerton are doing their best to provide guidance, acknowledging that they are in the same boat as their clients. The fear of tax rises, particularly regarding pension legislation, is a major concern for clients, as public services require funding and the source of that funding remains uncertain.
Concerns about personal savings and securing financial future: Focus on controllable factors like revising financial plans, assessing risk tolerance, and reviewing assumptions, rather than extreme measures. Maintain a long-term perspective and avoid hasty decisions.
Due to economic uncertainty and past experiences, people are increasingly concerned about their personal savings and are considering various actions to secure their financial future. Some may consider extreme measures like offshore investments, while others may give away assets to avoid inheritance tax. However, financial advisors recommend focusing on what individuals can control, such as revisiting their financial plans, assessing risk tolerance, and reviewing assumptions. Despite past healthy returns since 2012, it's essential to remember that investments are a long-term means to an end and not for short-term gains. Many wealthy investors are increasing their cash levels, but financial advisors advise against making hasty decisions and instead suggest techniques like phased investments when moving cash into the market. Overall, it's crucial to maintain a long-term perspective and not let short-term volatility cause unnecessary worry.
UK Election and Labour Party Policies: Short-Term Speculative Trades: Some individuals may consider short-term trades based on UK election outcomes, but these come with high risk and should only represent a small portion of investment funds. Debate continues on the future of financial advice, with potential for automation and human advisors in a hybrid approach.
While long-term investment planning is generally advised, some individuals may be interested in short-term speculative trades based on political events like the potential outcomes of the UK election and Labour Party policies. These trades come with high risk, and investors should only allocate a portion of their funds to such ventures. Regarding the future of financial advice, there is ongoing debate about the role of technology and human advisors. While there is potential for automation to reduce costs and make advice more accessible, the complexity of financial situations and the need for human judgment suggest that a hybrid approach will likely prevail. Lastly, the Financial Times is encouraging young people to explore personal finance journalism through a competition in partnership with the London Institute of Banking and Finance. The winner will receive a cash prize and potential publication in FT Money. The competition is part of the FT Schools program, which offers free access to the FT website for secondary school students and teachers.
Mortgages lasting up to 40 years could be a financial burden in retirement: Rising property prices are leading to longer mortgages, potentially making homes a financial burden instead of an asset during retirement
The length of mortgages is increasing, with many now lasting up to 40 years, which means homeowners could be making payments well into their retirement. The term "mortgage" comes from the French words for "death" and "debt," implying that paying off the loan kills the debt. However, Paul Lewis, the Moneybox presenter, expresses concern that homeowners might not live long enough to pay off their mortgages due to their extended duration. This trend is driven by rising property prices, and it could lead to a situation where people's homes become a long-term financial burden rather than an asset. It's important to consider the potential risks and changes that can occur over a 40-year timespan, such as divorce, job loss, or illness. While some lenders hope that longer mortgages will encourage people to view their homes as lifelong investments, the statistics suggest that people's circumstances are likely to change during that period.
Long-term 40-year mortgages: Affordability concerns and uncertain risks: Consider shorter-term mortgages like 25, 10, or 20-year loans for more flexibility and financial security, instead of 40-year mortgages due to affordability concerns and uncertain risks.
There are concerns about the affordability of 40-year mortgages and their potential negative consequences. Mortgage lenders are offering these long-term loans to keep their business afloat amidst rising prices. However, past attempts to boost affordability have led to disastrous outcomes, and the risks associated with 40-year mortgages are uncertain. Paul Lewis, a freelance journalist and BBC Moneybox presenter, expressed his worries about the potential catastrophes and urged people to think carefully before opting for such mortgages. Instead, he suggested considering shorter-term loans, such as 25, 10, or 20-year mortgages, for more flexibility and financial security. Listeners can read Paul's column on the topic at ft.com/money. The Money Show will return next week with more financial news and advice. In other news, Shopify is a global commerce platform that helps businesses sell online and offline, and 1-800-Flowers offers Mother's Day gifts and savings for listeners.
