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In for the long haul

By Susan Worthington - Topics: Investments, Mallorca, menorca, Moving to Spain, Spain
This article is published on: 4th June 2020


As a financial adviser, during lockdown I had the luxury of time to keep in touch with clients, albeit remotely.

In the first few weeks, the mission was to send out some facts and reassurance so that my clients all knew I was still there, whatever the current circumstances. But as the weeks went by, I had time to learn about how clients were reacting and whether they might feel their situation was under threat in any way. Was anything I was saying, helping them; was I missing any vital signals where help was needed?

My first experience with a major stock market crash was in 1987 and from that I learnt that the priority, when investing money, is to ensure you have a sufficient emergency reserve. Doing so will allow the upheaval to resolve itself without the desperate need to draw on investments during the most unfavourable times. Those needing income from their investments worry the most, but as long as everyone remains invested they have better potential to recover from sharp falls. March presented the toughest time.

At The Spectrum IFA Group we maintained weekly Zoom meetings with fellow advisers in Spain and from this came the concept of a questionnaire to send out, which I adopted to become The Lockdown Questionnaire.

in for the long haul

The results were reassuring and informative, giving me the opportunity to provide additional support where it was needed. It is still ongoing as not everyone has yet responded, although have told me they will do soon.

In brief, the results so far revealed the following:
8% only, had found lockdown difficult.
70% were very comfortable talking over the phone, on video chat or email.
78% were worried about their investments but understood that sitting tight was the key.
31% only, felt that now was a good investment opportunity.
78% have saved on their spending and felt in control financially.
31% felt their priorities with money had changed through lockdown.
92% which was reassuring, had enough emergency money set aside for the short term.
100% which was an excellent result, have an up to date will.

This is evidence to me that health comes first, but knowing that their money was doing the best it could under the circumstances and having regular contact does help to give peace of mind.

There is much ongoing activity for me now to follow up with. Some more hand holding, some more reviewing of income requirements, without any need to recommend a will!

If you would like to discuss managing your money in these volatile times, don’t hesitate to contact me with the details below.

A Fundamental Reshaping of Investments

By Susan Worthington - Topics: ethical investing, Mallorca, menorca, Spain
This article is published on: 25th February 2020


Having recently attended The Spectrum IFA Group Annual Conference, I discovered we are on the brink of a fundamental reshaping of finance.

We were given presentations from the various fund managers we work with. This year the message was the same from each one and very different from the usual theme. Refreshingly so!

There was less concern or discussion about Brexit, Trump and the Trade Wars. It was more focused on a much bigger concern, which is believed to stem from customer demand, connected to our environment. A concern now and very much for the future.

ESG investing
So how can fund management help the environment? Do they only select successful companies where there is the best potential for growth for their investors? Here we see a fundamental change to one where the sector for good potential for growth might now be ESG Investing. This stands for Environment/Social Governance Investing generally known as environmentally friendly investing or green investments.

As my colleague, Gareth, in Italy sums it up:

Certain fund managers are adapting to the challenges and know that if their sector fails to adapt then they will likely go out of business. Consumers are being selective about who they do business with and are making choices based on how company policy sits with their personal views. Equally, investment managers have realised this trend and are also aligning their asset management styles with those of their customers, because they can see that prospective investors will choose investments based on how they match with their ethical views.

Asset managers are the largest allocators of capital in the world: investment funds, pension funds, sovereign investment funds etc and now they are starting to look at not just where they place money, but question why they do it. This could be the catalyst for real change.

Consumers and employees are the real capital of any business. People are making choices based on how businesses treat their customers and also their employees. Happy employees make for higher profits and more prosperous businesses.

Let’s do things for the future not in the future. Creating wealth without borrowing from the future.

The Spectrum IFA Group is adapting to these changes and we are currently working on a selection of ESG investment portfolios. We are mindful that there is always the danger that this trend can attract what is known as “green washing” funds, i.e. not completely compliant with ESG requirements, so we have a careful selection process. A word of warning if you seek ESG type investments: avoid anything that sounds too good to be true, that merely has a trendy sounding name and don’t invest in anything that does not have a track record. Use professionals to guide you who have the resources and research behind them.

If you would like to know more about ESG investment funds, please contact me below:

The Emotions of Investing Money

By Susan Worthington - Topics: Financial Planning, Financial Review, Investment Risk, Investments, Mallorca, menorca, Spain
This article is published on: 21st February 2018


Most days I count my blessings for having a job that I love doing. There are the odd times when it does get challenging, but when I’m helping clients all day long they are the magic cure. Being an Expat Financial Adviser giving advice on how to invest your money means it’s vital for me to get to know my clients. That involves understanding what their passions and goals are and what their fears and dislikes are too. It’s usually two things that drive investments, fear and greed, and my job is to manage these aspects. I let the experts manage the money and I take care of the emotions.

That’s not to say that I am a psychologist or psychoanalyst, but I did take advice from one while writing this to make sure I express myself as having the best interest of the client and not just voicing my opinion! If a client does not feel comfortable with advice they receive,then it must not be right. Persuading someone to do something is not in your best interest. I may have been guilty of this in the early years of my career when we were put under pressure by our management, however, at The Spectrum IFA Group we are trained differently, and age and experience have taught me that this is not the way to keep a client.

I am an investor myself so understand that the value of your money can and will go down as well as up, yet if I believe in what I recommend I can help clients when the times are unsettling. Having patience and belief in the advice you receive is paramount. If your gut instinct says that you don’t believe any part of what you’ve already done then discuss your concerns with an Adviser.

Emotions connected to your finances can relate to varying issues because each and every one of us is different. Common symptoms are: maybe you can’t sleep, you always worry about money, you are fearful about what might happen to it, you haven’t heard from your Adviser, you’ve never done this type of thing before, what happens to your money when you die, can you lose some or all of it, what if you go back to live in the UK?

When we are younger we are prepared to take more risk with our money, but as we grow older we tend to become more cautious and have concerns about whether the money will see you through. This all needs careful managing and looking after to ensure it does what you want it to.

5 Factors I take into account before making a recommendation are: what income do you have and need to live on, what assets do you own, where do you pay your taxes, what level of risk, if any, are you prepared to take and how long do you wish to plan for.

Another point to consider for living in Menorca is where is you Adviser regulated? This is important because if you have a legal problem it ideally must be dealt with in Spain. We are registered and regulated under the DGS (Correduria de Seguros). Does it work to have someone regulated in the UK when you live under the authorities of Spain? All Spectrum Advisers are regulated in the country they live and work in, they are expected to live locally and within easy reach of their clients.

3 words to say. Reassurance, Reassurance, Reassurance. To know that all is as it’s meant to be will allow you to live your life more peacefully and happily on this beautiful island.
Menorca has a special place in my heart. I used to live and still own a property here on the island and purely demand from work made living in Mallorca more practical. My opportunity now to say thank you to all my friends and clients here who keep me having to come backwards and forwards all the time!

Spectrum client event, Sant Luis, Menorca

By Susan Worthington - Topics: Events, Mallorca, menorca, Spain
This article is published on: 18th June 2017


To celebrate our continued commitment to both new and long term clients, our Balearic team organised a relaxed and fun event in Sant Luis, Menorca.

A total of 39 people attended the gathering which enabled Spectrum’s advisers time to chat with their guests and catch up in a relaxed and fun atmosphere.

Spectrum IFA Mallorca

The location was excellent at Bodegas Binifadet in Sant Luis. The staff were very attentive, the food really tasty and in general the venue was ideal for a relaxing afternoon. Thanks go to Andrea Collier for organising the event, to Rocío Berzosa and her team at Binifadet, to the team from Tilney Asset Management for their sponsorship and to the whole Spectrum team in Mallorca and Menorca for their support and organisation.