Ready, steady, cook investment success

Future Life Wealth Management is hosting a conference to advise on personal finance strategies, with the expertise of Seven Investment Management’s Justin Urquhart Stewart and Investec’s John Haynes offering their expertise while cooking against the clock in Ready, Steady Cook The Economy.

Guests Mr Urquhart and Mr Haynes will be answering questions on where they think the economy is going and how this will impact on financial planning.

Factors the conference will focus on include the impact of eurozone issues such as a defaulting Greece or Spain, and upcoming general elections in Germany and the USA, with its $15 trillion debt and the possible consequences for Britain if these governments were to change.

TV pundit Mr Urquhart Stewart, who has made appearances as an investment expert on Radio 4’s Today programme and BBC Television’s Money Programme among many others, will be cooking up a risotto.

“It will be a European risotto,” he said. “We will start with ‘the Greece’ and work our way round Europe taking different elements from the eurozone.

“If it is inedible then we can assume that the euro is doomed!” he quipped, adding that he is planning an Eton Mess for dessert to reflect the membership of the Cabinet.

He said the message he will be trying to get across to the delegates at the conference is that investors should not be too afraid of present-day economic troubles such as the euro crisis, as investments needed to be considered in the long term.

His advice was that families should plan their finances together to make the most of a pool of funds, rather than investing individually.

He said that keeping a wide portfolio which included a variety of investments such as shares in Europe, United States and Japan, commodities, property and something else such as timber could create an overall return of six to eight per cent per year. “It sounds boring, but the best way of building up wealth is by compounding – where interest is re-invested.

“By doing this it is possible to double your initial investment every 10 years,” said Mr Urquhart.

“Within your lifetime you don’t have to win the lottery, you can make the lottery!” he said, adding that a £10,000 investment could make all the difference.

Investec’s John Haynes said: “With bank base rates and gilt yields at all-time lows investors have to be aware that achieving any kind of return at all will be above the ‘risk-free’ level which these assets have historically provided.

“The current problems in the eurozone amply demonstrate the fact that we cannot simply focus on the fundamentals of an investment in isolation, that it is just as crucial to consider the wider context within which an investment exists and to establish whether this exposes an investor to unacceptable risk.

“It is, however, true that we are not fearful of current market conditions and believe that they may prove to be beneficial for those willing and able to take a medium-term view.”

The innovative approach to investigating the experts’ opinions on the future of the economy is being hosted by Sheffield-based Future Life Wealth Management’s managing director Jillian Thomas.

“The central theme is looking forward with regard to financial planning of individuals and companies,” said Miss Thomas.

“Many people’s retirement funds have dropped by an average of 20 per cent because of quantitative easing. There is also an impact on final salary scheme pensions and some businesses have failed because of the impact of quantitative easing.”

Miss Thomas also wants to look at the globalisation of FTSE 100 companies: “The idea is to get a good understanding of how that relates to investments. By having stock in the FTSE 100 you are investing in global companies,” she said.

Miss Thomas’ personal view on the future of the economy offers a solution: “How do we overcome the recession?” she said.

“Stop quantitative easing and give everyone £2,000 to spend on goods or services, which will put money into companies.

“The economy needs a major shot in the arm, not more of the same.”