NEBA Financial Solutions have worked with IFAs all over the world for many years in a number of different ways. Unsurprisingly, many many of them started at deVere. For all that might be said about deVere, we at NEBA have a lot of respect for deVere and what they have accomplished even though they are not our client. Regardless of how anyone personally feels about deVere, nobody can deny the success they have had. The vast majority of IFAs we interact who are most successful started at this company. It has proven time and time again to be a great training ground for success. However, when IFAs leave to set up on their own or join another firm for better commission (as there is a lot better on offer out there), many simple mistakes are made by more than a few IFAs. So why write this? No, we are not trying to convince you to go back, although many IFAs do return to deVere. There is so much more money to be made. The reason is simple: DON’T MAKE STUPID CHOICES!! When you leave quite often there is nobody restricting your investment decisions and a world of options is opened up to you. It’s about putting your clients first. Here are some tips to help you keep your clients happy and avoid death threats: Choose the right company to work with Higher commission rates should not be the only thing that attracts you to a company. Did you know that most IFAs who leave deVere end up earning less money than they did before? Having higher commission rates without the right work ethic is a recipe for disaster. Keep up the good habits you have formed. The company you work with should also be regulated somewhere. If not, the amount and type of business you can do would be restricted e.g. SIPPs etc…. NEBA work with IFA companies all over the world and can advise you what is a good deal and who is trustworthy in your area to work with. For those branching out on their own (starting their own company) choosing the right Network is essential. Networks basically provide TOB with all the Platforms you need for a small cut of the reveune. Often TOBs can’t be obtained without regulation or a history of business making it difficult for new companies starting up. For a list of Networks we recommend, email john@nebafinancialsolutions.com. There are pros and cons to each. A Network is only suitable for those who can operate their own office as you are essentially on your own, just tapping into someone else’s TOB with Platforms. Some have joining applications of $2500+, a monthly charge + up to 20% of commission. Others just take 15-20% of commission. This can be a highly rewarding move for the more experienced IFA, but damaging if you are not quite ready to branch out on your own. 2. Structured Products Ex-deVere IFAs seem to ask for the same type of structured Notes. Does S&P 500, FTSE 100 & Eurostoxx sound familiar? These are often described as the “Major Indexes”. Did you know that this combination of Indexes in a Structured Note lowers the return for the client and doesn’t lower volatility to make it safer? There are many other “Safe” Indexes to use which will produce just as much (if not more) safety and a higher return. “Can’t be” I hear you say! Well, unless you are a Structured Note specialist and know how they are priced, you should listen up! It has more to do with the correlation between the underlying assets than the assets themselves. How Structured Notes are priced is a whole separate article, so I will leave it here. NEBA are happy to support you by giving rationale behind any Index used to help you explain to your clients. Just because it is what you sold in the past, it doesn’t mean that it is still best today! 2. Other Bad Investment Choices There are literally hundreds of companies out there. They also have sales men and women telling IFAs stories about “their investments” and “how good they are”. They make everything sound so wonderful to build your confidence in what their selling. I am surprised how many IFAs fall for these tricks. As a sales person yourself, shouldn’t you be able to recognise when you are being sold to? Look into any investment you promote to your clients. If it sounds too good to be true, it often is regardless of the justification given to why it is not too good to be true. Sad to say that some IFAs simply don’t care about the risks choosing to ignore tham and are attracted to the ridiculously high commission on offer. Hopefully if you are reading this, you are not one of them. Here are some thoughts and examples of investments to avoid: Car Park or other property investments – Guaranteed return + Guaranteed buy back after 5 years. The T&C’s state that the guaranteed buy back is conditional on them having a buyer. WHAT??? That is like me saying I guarantee to sell your car in a week……. “as long as I have a buyer”. NEBA advised people to avoid these years ago. https://www.thisismoney.co.uk/money/investing/article-7217241/Park-sold-airport-car-park-spaces-investment-goes-bust.html Any Fund or Loan Note that pays stupid commission to you, high return to the client, high commission to the distributor and the investment itself needs to make money. Mmmmm….. I am sure that all these people can be paid and the client will still get his money right?? Some Loan Notes are fine otherwise they wouldn’t exist. However, many that are promoted to IFAs have a great sounding story e.g. High Guaranteed return, 100% Capital Protected, high commission. Not so useful when the Capital Protection is worthless! https://beatthebanks.co.uk/unregulated-pensions-investments/dolphin-trust/ Might be worth reading https://nebablog.com/2018/08/13/100-capital-protection-myth-or-real/ These are just a few of the hundreds of examples ex-deVere IFAs have invested into. In summary, leaving deVere can be the best move you have ever

Is the World Ending? Should I Sell? During times of high volatility, it can be very tempting to want to pull out of your stock market investment. But according to a recent study by Bank of America this might be the worst thing you can do. Nobody can fully predict the markets which is why so many Fund managers experienced losses. “What if they fall further??” some people say. Even though nobody can predict major events like COVID 19, the can manage event risk after they have happened. In English, this means that although the Stock Markets may still fall, your Fund Manager will already have adapted his strategy to mitigate “event risk”. The the risk of further drop is still there, but any drop should be a fraction of the markets. Panic selling not only locks in losses but also puts investors at risk for missing the market’s best days. For you often find that the best days in the stock market come right on the back of the worst days. Your Fund manager uses techniques to take advantage of upside movement. Take last month as an example (March 2020). The indexes posted sizeable losses on many days but also enjoyed its two largest daily point gains on record. The impact of missing those large up days is extremely significant. According to the Bank of America study, if an investor missed the 10 best days of each decade since 1930 their total returns would be just 91% verses 14,962% if they just stayed invested the whole time. Think about it. Missing just the single best day each year lowers returns from 14,962% down to 91%. The only way you can make sure you catch those big up days is to stay invested even though you want to sell out. Experts advise investors to avoid the impulse to time the market, which can be difficult even for professional traders. According to an Axis Mutual Fund study spanning a period of 16 years from 2003 to 2019, equity funds delivered a compound annual growth rate of 18.8% but investors in these funds only returned 12.5%? Why is that? It is because investors try and time the market and mostly get it wrong. The study also found large fund inflows happened after a period of good returns, not before it. We see this all the time. Investors try to time the market but only end up making things worse. They would be better to ride it out. We know it is tough watching your investments fall but it will be tougher if you miss the recovery. We will close with a comment from Warren Buffett which he wrote in his most recent letter to shareholders. “Anything can happen to stock prices tomorrow. Occasionally, there will be major drops in the market, perhaps of 50% magnitude or even greater. But the combination of The American Tailwind … and the compounding wonders described by Mr. [Edgar Lawrence] Smith, will make equities the much better long-term choice for the individual who does not use borrowed money and who can control his or her emotions.” What Buffett is ultimately saying is “keep calm, and invest for the long term.” If your adviser has allowed you to sell out your investments without staging a serious protest, FIND A NEW ADVISER!! The same goes for people who have money sitting in cash right now. If your adviser has not strongly encouraged you to get it invested now, FIND A NEW ADVISER!! There is absolutely no point in sticking with an adviser or an advisory compay that knows less than you! www.nebawealth.com, www.nebafinancialsolutions.com Warning: This strategy is not for people who have invested in a few stocks. “Panic Selling…. Don’t be STUPID!!” was written for people invested in Mutual Funds and/or those with a diverse portfolio of stocks. If in doubt, speak to a qualified professional. Visit www.nebafinancialsolutions.com to see our Structured Products and UCITS Funds