Financial Advice Q&A with a Financial Adviser

Throughout your life you're likely to need different financial products and if the last few years have taught us anything, it’s that making sure your money is working as hard as it can is now more important than it has ever been.

Over the last two years, a high number of high street banks and building societies have reduced or withdrawn from offering face- to-face financial advice. Here at the Newcastle, we believe that offering customers access to personal advice is vitally important, so we continue to do so, through our subsidiary company, Newcastle Financial Advisers.

To help you understand any concerns or questions you may have, Sara, one of the Financial Planning Advisers answered some of the questions she frequently gets asked.

Q. What is your best rate?


A. We assess each customer's needs and objectives and we can show you a wide range of investment options that suit your individual requirements. Investments do not attract a 'rate' like a traditional deposit account and their returns are not guaranteed but they have the potential to outperform deposits over the medium to long term.

Q. Do I have to invest in the stock-market?


A. No, we can structure a portfolio that suits your needs. You can have a spread of investments across different asset classes depending on your attitude to risk and investment goals. (Diversification across different asset classes is viewed as the most successful strategy for achieving investment returns whilst spreading/reducing risk).

Q. I want to invest but I don't want anything to do with shares, what are my options?


A. You can invest in a wide range of asset classes that can provide you with the potential for a greater return than deposit accounts and you don't necessarily have to have all of your money in shares.

Q. If I do decide to invest can I access my funds?


A. Access to funds is possible with the majority of the investment options we have available, although we recommend investing for a minimum period of five years. Please note early encashment may mean you get back less than you invested.

Q. What if I might need access to my money and I don't want to tie it up for a long time?


A. Although we ask you to take a minimum 5 year view with any new investment, nothing we recommend has any exit penalties so you can access your money at any point, although this could impact on future growth. Please note early encashment may mean you get back less than you invested.

Q. What term do I have to invest?


A. Generally, with all investments we recommend a minimum term of five years however, you have access to funds at anytime in case of unforeseen circumstances. As part of our service we always ensure our customers have provisions for emergencies before recommending any longer term investment.

Q. Are there any risks involved?


A. Before any customer decides to proceed with an investment we cover all of the associated risks in detail when discussing the features and benefits. This enables customers to make an informed decision before committing their money to an investment. In fact, as well as investment risk, low interest rates, inflation and cost of living rises are also risks which need to be taken into account!

Q. Are there any costs/charges involved?


A. This depends on what service you want to take and how much you invest. We will help you make an informed decision by demonstrating what you get for your money, and help you decide what’s right for you. You will pay a fee for the advice if you proceed with our recommendations as well as product and fund charges specific to your investment.

Q. What return on investment will I get?


A. Depending on what investment you choose your (potential) return will vary. As part of our service we will show you a range of potential returns based on investment performance. However investment values are not guaranteed and you should not use past performance as a suggestion of future performance and it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

Q. I have been bitten in the past, is this the right thing to do?


A. Financial products and investment products evolve over time like most other things to be appropriate for the current climate. My job is to assess your past experiences and future goals and objectives and take these into consideration before making any recommendations to ensure that they are going to be right for you.

Through Newcastle Building Society branches you can still receive face to face financial advice through the Financial Planning Advisers. If you would like to find out more or book an appointment you can visit one of the Newcastle Building Society branches or call 0345 600 4330.