A Europe-wide poll has provided us with a reminder – should we have needed one – of deadly traps that lie in the path of unwary investors chasing the dream of big financial gains.
Nearly 2,000 people from across the European Union were asked to vote on the worst financial products. Not surprisingly perhaps, credit default swaps (CDS) on emerging markets’ sovereign debt headed the list of “investments” most likely to lumber individuals with horrible financial losses with 47 per cent of the votes.
The consumers who took part also highlighted reverse convertible bonds and foreign currency mortgages as risks to be avoided.
As well an unacceptably high risk of financial loss, such products also usually conceal the fact they carry high fees for the promoters as well as potential exposure to tax on any gains they may make.
Not that any of them play a part in the investment strategy operated on behalf of clients of The Whitehall Partnership.
As one of the leading financial advisers in Birmingham and the wider West Midlands we refuse to put a penny of our clients’ money into any of the complex, hard to understand, high risk investment products that have lost so much money for so many people in recent years.
It seems to us that the only people ever likely to come out ahead of the game with CDS and the like are the banks and investment funds that promote them.
So we at The Whitehall Partnership work hard to understand both the long-term financial needs of our clients and their ability to live with risk, as well as telling them precisely what fees they will incur on their investments.
We are proud of the fact that since the banking crash of 2008 when the once-mighty Lehman Brothers collapsed, not one of our clients has contacted us to express concern about the safety of their investments.
As financial advisers, we like our clients to sleep easily at night without worrying about their money – as do we at The Whitehall Partnership. Which is why we are the leading financial adviser covering Birmingham and the West Midlands.