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Blacktower Financial Management: Beginners GUIDE TO INVESTING | Christina Brady on BayRadio
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Oct 29, 2024
A recent survey out of the UK showed that many people, especially younger generations, felt intimidated about investing money and most weren't even sure where to start. Around 50% also believed that it was only for the very wealthy. Christina Brady from @blacktowerfinancialmanagem7049 addressed all of this in an all-round guide to getting started with investments during her regular appearance with Moody this week. For any enquiries contact info@blacktowerfm FAO Christina or get in touch through the website: www.blacktowerfm.com Be sure to Like and Subscribe to our YouTube channel for more insights from BayRadio Spain, and follow us on Social Media: Website: http://www.bayradio.fm/ Facebook: https://www.facebook.com/BayRadioInSpain Instagram: https://www.instagram.com/bayradiospain/
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0:00
we specialize in protecting preserving
0:02
and growing your wealth Black Tower
0:04
financial management the team you want
0:06
by your side visit black toow fm.com
0:09
talking to Christina Brady from
0:11
blacktower financial management where
0:13
we've had a look at the market see
0:14
what's going on now we touched on
0:15
pensions and um maybe you know people
0:18
having to save for the future because I
0:19
might not be a state pension um in I
0:22
don't know decades time but um here's
0:24
something I stumbled across because I
0:26
occasionally I know it doesn't sound
0:28
like it but I do a bit of prep for this
0:29
about people not saving enough and just
0:32
not really understanding about how to
0:34
get started with
0:36
Investments um this is uh this is out of
0:38
the UK uh two out of five four in 10
0:42
brids basically have no idea how to
0:44
invest for the future and I think part
0:46
of it is they think it's just for the
0:48
the very wealthy that have got money to
0:49
invest you know hundreds of thousands of
0:51
of pounds where where did you start can
0:53
you offer an insight into this actually
0:56
yeah I think it's more than four than 10
0:58
don't have any idea uh you know my
1:00
daughter and her boyfriend were asking
1:02
about investing the other day and that's
1:04
why I said I think Schools fall really
1:07
really short uh on educating uh
1:10
youngsters nowadays they don't
1:12
concentrate on real life and there
1:14
should actually be a class on you know
1:16
finance and how you open a bank account
1:19
how you invest how you can do these sort
1:21
of things and I do go around various
1:23
schools in the costablanca and give
1:25
talks on this and both children and
1:27
parents find it very very good and it
1:28
encourages the children
1:30
uh who are obviously going to go to
1:32
university Etc to think about money and
1:35
how they can make money it's you know
1:37
the young you start the better it's
1:38
easier said than done CU When you're
1:40
young you want to buy things you need a
1:42
car you're trying to get a house it's
1:43
very difficult to save but if you can
1:46
the younger you start the better but I
1:47
think what you need to do is first of
1:50
all no matter what age you are you need
1:53
to sit down and you need to decide what
1:56
your goals are be realistic what you
1:58
know if you've got a lump sign if you
1:59
inherit a lump suum if you managed to
2:01
save a lump suum if you sold a car
2:03
you've got a lump some however you've
2:04
got some or if you're just saving a
2:05
little bit what do you want that money
2:07
to do with for you but be realistic you
2:10
know most people go for what we call
2:12
passive investing so they pass their
2:13
investing onto a financial advisor or
2:16
they will just invest in what we call
2:18
passive funds so funds that follow in
2:20
indices like the S&P 500 the footsy ETC
2:24
because they haven't got the time the
2:26
knowledge and it put it does take a lot
2:28
of effort into doing this and if you do
2:30
it full-time as I do obviously over the
2:32
years you get more and more knowledge
2:34
you understand which fund managers are
2:36
good Etc um a good way to start is once
2:39
you've realized what your goals are and
2:41
to be realistic is how much do you want
2:43
to invest how much have you got that you
2:45
could put aside or how much can you save
2:48
each month and you know and on top of
2:51
that obviously things change as you get
2:53
older so you have to revise these goals
2:55
as you get older cuz what you want when
2:57
you're 20 is completely different to
3:00
what you want at 40 or what you want at
3:02
60 or what you want at 70 you know the
3:05
things do change in line with your life
3:07
and work out what risk you are um most
3:10
risk scales go from one to seven one
3:12
being the least risky seven being the
3:14
most risky and obviously you've got
3:17
safest is no risk so that's having a
3:20
bank account deposit account with a bank
3:22
that's guaranteed by the government as
3:24
you know the UK's got the guarantee up
3:26
to
3:27
85,000 and in uh Europe it's €100,000
3:31
and in the US it's
3:33
$125,000 but that's only if it's in a
3:35
straightforward current or deposit
3:36
account not if it's invested in any form
3:39
of investment um so if you're in Spain
3:43
the banks offer you things called fondos
3:46
they're not guaranteed by this at all so
3:48
once you've decided on your risk um then
3:51
you need to look at the different ways
3:53
to invest so there are there are lots of
3:56
different ways you can invest you can go
3:58
and you can you can look at buying
4:00
shares yourself you can go on a share
4:02
platform a trading platform and buy some
4:04
shares if you think a certain company's
4:06
good you don't have to put a lot of
4:07
money in um you can always put money in
4:11
a fixed term deposit which you can get
4:13
through various Banks um you could U put
4:17
your money in a Government Bond um
4:20
they're the safest places to go but
4:22
usually they have the lowest return how
4:26
however if the markets are volatile or
4:28
there isn't much of a return there is at
4:30
the moment in the markets now sometimes
4:32
they do actually give you a good rate
4:34
return at the moment on Sterling if you
4:37
put it in for a year you can get
4:39
5.3% or just above Euros is less Euros
4:43
is just under
4:45
3% um so you know you can put that in
4:49
there and you can put that for 12 months
4:50
or 3 years or whatever you want and
4:53
usually the capital is guaranteed and
4:55
you get that growth each year that you
4:57
keep it in if it's one year obviously
4:58
the rates r after each year if it's 3
5:01
years it's fixed for that term so you
5:03
just have to decide what type of
5:05
investment you want if you want the
5:07
potential to make more then obviously
5:09
you go into stocks and shares or you go
5:11
into buying funds um why do people buy
5:16
funds because they're managed by
5:18
qualified people usually fund managers
5:20
who have a team of analysts who look at
5:22
everything that goes into that fund and
5:24
based on statistical data and historical
5:27
data and projections they try and work
5:30
out where's the best to place your money
5:32
which countries which sectors etc etc
5:35
and they have their day is and their
5:37
time is dedicated to doing this and
5:39
there are some very very good funds out
5:41
there I would usually use if I do an
5:43
investment portfolio I look for funds
5:45
that have got a good track record 10
5:46
years or more um and obviously I look at
5:49
the risk factor as well and various
5:51
other things however you have to
5:53
remember if you've been investing for a
5:55
while maybe two or three years last year
5:57
was a very very bad year for Investments
5:59
I think 95% or more of funds didn't make
6:02
money and some of them lost 20 30 40%
6:05
this year there have been slow gains
6:07
obviously it's not making up for last
6:09
year yet and I think this Mar this year
6:11
is going to be not so volatile uh I
6:15
think there's not going to be that many
6:16
gains there could be a slight downturn I
6:18
think people are waiting on what happens
6:20
in UK elections what happens in the US
6:23
is very relevant what's happening in
6:24
China at the moment as well weighs Lots
6:26
on the market there's lots of things
6:28
affecting the markets uh at the moment
6:30
so you've got various things you've got
6:32
the safest which is deposits you know
6:35
government G guaranteed bonds next
6:37
you've got money market accounts you've
6:39
got treasury notes Etc then you've got
6:42
lowrisk investment portfolios which are
6:45
a three and then after that you go to
6:47
more balanced stuff where you're
6:48
investing in funds now if you want to go
6:50
high
6:51
risk you've got to accept you can make
6:53
lots of money but you could lose a lot
6:56
as well and high- risk is considered
6:58
high yield bonds so in countries that
7:00
haven't got a very good government
7:01
structure that could default leverage
7:03
products derivatives uh IPOs and
7:07
alternative Investments and all I can
7:10
say when you look at investing is be
7:12
realistic so keep it real yeah and
7:15
remember no one size fits all answers
7:18
everybody so it's the same with
7:21
financial advisors if you go see a
7:22
financial advisor and they've only got
7:23
one solution and they're trying to
7:25
tailor that to meet everybody's needs
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that is not correct you know a Black
7:29
Tower we've got access to the whole of
7:31
the market and we can give you anything
7:34
well within reason we can give you
7:35
anything that we think is suitable for
7:37
you hopefully we try and keep it tax
7:40
compliant in Spain because there are
7:41
benefits but sometimes it's worth going
7:43
outside that to get a good return on
7:45
your money and also please please this
7:48
is something I say everything every
7:49
single time if something sounds too good
7:52
to be true it usually is okay if you
7:56
know if everyone else is offering you a
7:58
return when capital's guaranteed of say
8:01
5% and you get an advert for or you see
8:04
a website saying your capital's
8:05
guaranteed on Sterling will give you 10
8:07
15% a year that is a con okay that is
8:11
not possible when interest rates are
8:13
that low is still you know relatively
8:15
low we're not have seeing interest rates
8:17
of 10 15% so be very very careful
8:20
because also you know
8:22
investing sometimes people can get taken
8:24
in by greed okay they read stories in
8:26
the paper of people making a lot money
8:28
doing this sort of investing same with
8:30
cryptocurrency you know if you got in
8:32
there at the beginning you've made a lot
8:33
of money if you're going in now you may
8:36
not make so much money because the
8:38
markets you know go up and down quite
8:40
drastically as you know Moody yes well
8:42
that's just my little dabble it's quite
8:44
a good introduction to it I think if you
8:45
can just put in what you can afford to
8:47
lose um you know watch how it works and
8:50
see how it goes up and down and just
8:51
kind of get used to that um it might set
8:53
you for the future as I said to yeah I
8:56
said to my daughter I said also I said
8:58
the younger gener ation if they want to
9:00
get into investing they're on platforms
9:02
and if they see a product or an idea
9:05
that seems to be taking off maybe put
9:08
something into the stocks and shares of
9:10
that company not a lot but you know like
9:13
Instagram if you'd got in at the
9:15
beginning you know these sort of things
9:17
they're they're at The Cutting Edge of
9:18
Technology most youngsters because
9:19
they're on their phones 24/7 sadly and
9:22
they've forgotten how to communicate and
9:24
how to live but you know they may see
9:26
things on there like a fashion brand
9:28
that's coming up or uh I don't know a
9:31
car brand or or something and it's
9:33
worthwhile then doing some research into
9:35
it and it you know it's quite a
9:37
challenging thing to do but it can be
9:39
quite interesting and seeing if it's
9:40
worthwhile investing and as I said you
9:42
don't have to put a lot of money in um
9:45
you know people who made money out of
9:47
apple out of Microsoft out of all these
9:49
companies they were startup companies at
9:50
one time and people put money in and you
9:53
know if you invest in say 10 startup
9:56
companies maybe only one will actually
9:59
make it to the big time but if you're in
10:01
that one you're very lucky yes um couple
10:04
of people you've got
10:06
to Microsoft folks behind that we don't
10:08
know their names but they living in a
10:10
solid gold house somewhere um in Hawai
10:13
you have to you know you have to take
10:15
risk and people who say they don't want
10:17
to take any risk really are never going
10:19
to have the potential to make a lot of
10:21
money you take a risk every day getting
10:23
out of bed you take a risk getting in
10:24
your car every day you take a risk
10:26
walking down the street every day you
10:28
may not think do but you are you've got
10:30
to take you've got to then sort of
10:33
equate that risk to what you would allow
10:35
with your money okay yeah and it's
10:39
difficult I know but most people now are
10:41
familiar with risk and the main thing is
10:43
never put all your eggs in one basket I
10:46
had a chap in yesterday who sadly was
10:48
convinced by his bank many years ago to
10:52
invest his money in a investment that
10:56
was purely linked to the performance of
10:58
Bank s and this was just before we had
11:00
the Leman crash okay and the bank which
11:04
will remain nameless was a very large
11:06
Bank uh the person in the bank because
11:09
they they've given products to sell they
11:10
don't really understand most of the
11:11
underlying said oh yeah it's a good bet
11:13
you know you invest in these big Banks
11:16
and then suddenly the banking Bubble
11:18
Burst and he lost a huge amount of his
11:20
money now if it' been Diversified across
11:23
sectors he would have lost some money
11:26
but not all of his money and I think
11:27
that's another thing to keep him mind
11:29
when you do go into invest in diversify
11:32
and if you're not can't do that yourself
11:34
then look at a fund or a portfolio
11:36
because they usually it depends on what
11:38
you're looking at portfolios are very
11:40
very Diversified usually across sectors
11:43
across countries across risk and you
11:45
have portfolios like cautious balanced
11:48
you've got cautious balanced you've got
11:50
balanced growth you've got various
11:51
different portfolios you can go into you
11:53
don't have to put all your money in one
11:54
you can split it between a number of
11:56
them and that way it gives you some
11:58
comfort as well well and I think you
12:00
know to dabble in investing is fine but
12:02
unless you've got a lot of time on your
12:05
hands and you prepared to do the work to
12:07
get the knowledge it is very difficult
12:09
to uh manage investment solely on
12:11
yourself by yourself and that's where
12:14
sometimes you need to get professional
12:15
help yeah so if if you got a fund under
12:18
a fund manager um like there are options
12:20
to sort of completely hand it over to
12:21
them or you're able to pipe up
12:23
occasionally and say well I'm quite
12:24
interested in this what do you think and
12:26
then take it on usually if you're going
12:29
to go into a fund you can buy some funds
12:31
direct but usually what you do is you
12:32
buy them within a portfolio so what
12:34
you'll have is you'll have what's called
12:37
like a rapper or a bond and with the in
12:39
that you put your Investments so someone
12:41
will say 50,000 we say right I want to
12:44
invest in water robotics I don't know UK
12:48
equities uh uh S&P tracker and what you
12:51
do is you put together a portfolio that
12:54
that has all those funds in it and then
12:56
you go through it with the investor and
12:58
you talk them through how each funds
13:00
performed historically where they are
13:02
now and what you have to remember is
13:04
though historical performance is a good
13:06
indicator of the way they perform is not
13:08
a guarantee of the way they're going to
13:09
perform going forward so you have to
13:11
obviously look at that and if it looks
13:13
very good sometimes I have funds and
13:15
they've made 10 15% a year and we're
13:17
talking sort of 2021 and I said to
13:20
people right that's what they're saying
13:22
but let's realistically say they're
13:23
going to make 5% a year so bring your
13:26
expectations in line with reality and
13:29
then if you make more you'll be happy
13:31
but understand that funds go down as
13:33
well as up and I think up until we had
13:36
coid uh most of it was steadily growing
13:39
you didn't have that many tal turns
13:40
since 20072 2008 and people were used to
13:43
seeing steady growth on their portfolios
13:46
on their Investments that has changed
13:48
dramatically since the lockdowns uh
13:51
since we had the the one crash in March
13:54
2020 and we've had other things that
13:57
have had knock on effect since then you
13:59
know conflict in Ukraine Russia you know
14:02
political unrest Etc so as I said you've
14:06
just got to understand that you are not
14:07
going to make money all the time but
14:09
investing is not unless you're going to
14:11
trade daily it's not for short-term gain
14:13
it's for medium to longterm gain so
14:16
you're looking five years plus and if
14:17
you're younger 10 20 30 years and that's
14:20
the whole idea of investing is to watch
14:23
your money it can go down as well as up
14:25
but it will grow gradually over time and
14:27
if you look statistically back across
14:29
time and how you know various indices
14:31
and various funds have performed even
14:33
with the downturn they've still made a
14:35
huge return on your money yeah this
14:37
survey I was um pulling this from it
14:39
said 47% so almost half I said they're
14:42
daunted by the prospect of just getting
14:44
started but um I'm I'm betting that
14:46
there are some that once they do get
14:47
started they get get right into it and
14:49
have to be rained in a bit sometimes
14:51
probably um I think you could get hooked
14:53
actually it depends on your you know you
14:56
got someone there someone there to keep
14:58
an eye on you a proper you know a
14:59
qualified person that might be an
15:02
idea it is difficult because you know
15:05
once you start making money it's like
15:06
betting isn't it you know once you win a
15:08
bet you think you're always going to win
15:10
but you've got to understand there will
15:12
be downturns and and I think most people
15:15
do however if you've got an addictive
15:17
personality and I would be very very
15:20
careful and i' short hand over that to
15:22
someone else and if you are
15:24
exceptionally risk adverse um then you
15:27
need to go for something that's going to
15:29
give you a low rate return but is
15:30
capital guaranteed and when people do do
15:32
Investments nowadays you can have online
15:35
access to your Investments and I find
15:38
the most worrying people are those that
15:40
check every day so one day you'll get an
15:43
email saying oh my God it's brilliant
15:44
I'm up 5% then like a week later oh my
15:47
God I'm so depressed I'm down 2% or I'm
15:49
down 10% that's not what you know
15:52
long-term investing is for no um that is
15:56
like being a spot Trader for foreign
15:58
exch ex change you know you're going
15:59
each day and you hope to make money
16:01
rather than lose money um as I said
16:03
investing is hopefully you will have
16:07
downturns but in the long time that will
16:09
the good times will outweigh the bad and
16:11
I think that's what people do realize
16:13
nowadays usually when there's a downturn
16:15
very very few people panic if there is a
16:18
downturn and you sell your crystallizing
16:20
a loss if you wait it wait it out it
16:23
will come back and therefore you can
16:25
either sell at the same price you went
16:26
in or wait till you make a profit and I
16:29
think that's when you need a steady
16:30
nerve and you know to be able to talk to
16:32
your financial advisor I had someone
16:34
send me an email on Friday um they were
16:37
worried that one of their portfolios had
16:38
gone down so we went through and we
16:40
analyzed each sector each fund and at
16:42
the end of it they understood exactly
16:45
where they were and they were more than
16:46
more than happy to leave it where it was
16:49
and I think you need sometimes to have
16:51
someone to bounce this off and to make
16:53
you feel more comfortable and if things
16:54
are going wrong you know we don't always
16:56
get it right I have to admit there was
16:58
some funds that were doing remarkably
17:00
well in the you know
17:02
2122 I think one Company B gford runs uh
17:05
Springs to mind and some of their funds
17:07
have done abysmally since then and
17:10
sometimes you have to admit a mistake
17:11
cut your losses and then invest in
17:13
something that's going to you know make
17:14
that money back for you yeah that's
17:16
another problem doing itself as well
17:17
because s flies so quickly a couple of
17:19
years later and you just think well
17:20
that's that's you know that's a great
17:22
stock to have but things do change and
17:25
you you just still think of it as being
17:27
you know a high performing one
17:29
yeah like at the moment people who want
17:31
to take less risk we can move them into
17:33
money market funds because interest
17:34
rates are high well higher than they
17:36
have been money market funds can give
17:38
you 3 4% per anom but as soon as
17:40
interest rates start to fall you have to
17:43
be prepared to switch out of those
17:45
because you're not going to be making
17:46
any money anymore so it is very it's
17:49
very important to understand where the
17:51
markets are how you know different
17:53
factors affect the markets and what you
17:56
need to be doing at certain times to try
17:58
try and minimize your risk and to try
18:00
and you know if you can get as much
18:02
upside as possible but at the moment as
18:04
I said it's still trying to claw back
18:07
what was lost last year for most people
18:10
um you know if they've only been
18:12
invested for a short ter if you've been
18:13
invested for a longer term you're not
18:15
that much down um but if you just sort
18:17
of came in 2021 you could be down a
18:20
little bit but that will come back and
18:21
as I said to people you just need to
18:23
hold your nerve you know investors love
18:26
it when people sell when the Market's
18:27
going down because they've got Surplus
18:29
cash uh the wealthy and they will go in
18:31
and buy everything that you're selling
18:33
and that's how they become you know more
18:35
and more wealthy because they know
18:37
people will Panic they know people will
18:38
sell and they rub their hands and think
18:40
hey here we go let's buy this really
18:43
cheap yeah so just finally the final
18:46
stat I'll Paul from this 49% so again
18:48
almost half um they just kind of put off
18:51
making any Investments by the idea that
18:53
only only the wealthy can do so it's
18:54
only for uh the well off to do so you'd
18:57
say that's not necessarily true true
18:58
that is a load of boulder dash I'm
19:00
allowed to say that word cuz it's not
19:02
word it's not word I can say B it is
19:04
absolutely you know you can start
19:06
invested in shares with Fi you don't
19:08
need huge amounts of money you know
19:10
Investments we do okay we can start from
19:13
25,000 usually um and obviously we weigh
19:17
up the benefits of doing that but there
19:19
are some good Investments out there that
19:21
you can start with
19:22
25,000 and then you can build from there
19:25
uh as I said you can go into shares with
19:26
not much money at all so no it's not
19:29
only for the wealthy and I think that's
19:31
how the wealthy are wealthy because they
19:33
have invested um and if you look at most
19:37
uh wealthy people they admit that
19:39
they've made mistakes they've lost money
19:41
most of them have become bankrupt at one
19:42
time or or nearly bankrupt but they've
19:44
always you know held fast and believed
19:47
in what they're doing and I think that's
19:50
what people need to do you need to take
19:52
that leap of faith you need to put some
19:54
money in as I said don't put all your
19:55
money in always keep back a contingency
19:57
fund and just invest what you are
19:59
comfortable with having some form of
20:01
risk on and make sure that you you're
20:04
whoever you invest with or if you do it
20:06
yourself you understand the risks
20:08
involved and don't ever be rushed into
20:10
anything if someone sends you something
20:12
and says look this is the rate of return
20:13
you've got to invest this week you've
20:15
got to do it now step away don't do it
20:18
never do anything in haste okay always
20:20
think about it don't procrastinate for
20:22
years and years but obviously take your
20:25
time and that's what I have to say as
20:27
well that was great I mean I I thought
20:29
that was worth doing and I just put it
20:30
to you just before we came on but I had
20:32
full confidence you'd be able to answer
20:33
it um just as perfectly as you have done
20:35
so that was a great um bit that thank
20:37
you thank you for
20:38
thatl because obviously sometimes I the
20:41
markets are a bit sort of at the moment
20:43
and so it's good for you to bring up a
20:45
topic to talk about and if anyone hasn't
20:46
got any topics you want us to cover if
20:49
you just let Bay radio know um they will
20:51
let me know and I can always add it into
20:53
a into one of the programs for you
20:55
absolutely yeah usual methods to get in
20:57
touch here WhatsApp 6844 584 Studio Bay
21:01
radio.fm almost out of time if
21:04
anything's come up that um you might
21:05
want to talk to someone like Christina
21:07
about easy to get in touch many ways to
21:09
get in touch with Black Tower financial
21:10
management yes you can uh email info at
21:14
black toow fm1 word.com put for the
21:18
attention of Christina or put Bay radio
21:20
it will come through to me you can go to
21:22
our website which is black toow fm.com
21:24
if you look under locations you'll find
21:26
Costa blaner you can find my details you
21:28
can go on the bay radio website under
21:30
advertisers if you click on Black Tower
21:32
it goes through to our website you can
21:36
always Google Black Tower and find the
21:38
number uh the number for the office is
21:41
9655 8212 and remember we don't just
21:44
cover the cost of blank we cover the
21:46
whole of Spain we cover most of Europe
21:48
we've got offices in North America
21:49
Middle East Australia UK and uh from the
21:53
last show we had someone contacts us
21:55
from the US and someone from the UK and
21:58
someone from France so so you know and I
22:01
I just hand you over and actually
22:02
someone who's interested in Portugal so
22:04
I just hand you over to the appropriate
22:06
person in that in that area and they
22:08
will get in touch with you and they will
22:09
help you and make sure that whatever you
22:11
need they can hopefully help you with
22:14
listening and exceeding expectations for
22:16
over 31 years Black Tower financial
22:19
management the team you want by your
22:21
side visit black toow fm.com
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