Don't take investment advice from taxi drivers or hairdressers
Alan Steel shares his top investment pearls.
By Victoria Bischoff
28 February 2012
Today, our investment teacher is Alan Steel of Alan Steel Asset Management in Linlithgow, Scotland.
Here's his advice to newbie investors...
There is 'loads of advice' I can give but my top three pointers are:
- Ask around to find the best independent financial adviser you can trust to help you establish long-term goals in easy to understand terms, kick you in the arse to keep you on track and help you get there through thick and thin.
- Don't be tempted to invest where everybody else is, only invest in the most tax-effective ways and be patient along the way.
- Don't listen to the popular, or should I say unpopular, media, economists - or pessimists as they're better known - hairdressers, Robert Peston and taxi drivers as they're usually wrong.
We like Alan's first tip of shopping around for an independent adviser you can trust very much and Citywire's Adviser Finder can help direct you to a good-un - not a hairdresser or taxi driver in sight! Our beginner's guide 'How to find a good independent adviser (IFA)', meanwhile, explains what questions you should ask an adviser before you sign them up and the types of fees they charge.
We also like Alan's no-nonsense approach to jargon. Deciphering the complex small print of financial products can be a nightmare so an adviser who will break this down into clear and concise information for you is worth hanging on to - though it has to be said we prefer advisers to keep their feet to themselves.
Alan is also bang on when he says to ensure you invest in the most tax efficient ways. Read our article 'Savings: how to make the most of tax breaks' to find out more about how to keep your money out of the taxman's clutches.