Financial Planning – The Key Steps
As a Thompson & Richardson Wealth Management client you can rest assured that we will have a clear understanding of what you want to achieve in the coming years, supported by a professional financial plan that is under constant review to ensure it remains fit for purpose. The following are the key steps in this service:
Getting to know you – The Planning Meeting
Before we are able to provide you with any advice, it is essential that we get to know you. To do this we will ask you a range of questions to help understand what your goals and aspirations are. Once we have a clear picture of what you want to achieve, we will need to know what financial resources you have set aside to achieve these goals.
At this stage we will also ask you to complete a short questionnaire to help us assess not only your willingness to take risk, but your capacity to accept it. We will then discuss the outcomes from this questionnaire with you in significant detail to ensure that you have a clear picture of the possible investment returns that you could expect as a result of your decision.
With a clear understanding of your goals and aspirations, your current financial circumstances and the level of risk that you are comfortable with, we will then help you prioritise your goals into the following durations:
- Short Term – 6 to 24 months
- Medium Term – 2 to 5 years
- Long Term – 5-10 years
With your financial timeline in place we will help you arrange your finances to optimise your ability to achieve these goals with the lowest level of risk to your portfolio and future standard of living.
With a clear Financial Plan in place we will take account of your attitude to risk and recommend the most suitable mix of tax wrappers and assets to achieve your goals. This will usually involve a mixture of cash, bonds, property and equities.
Having matched a range of assets to your risk requirements we will take time to explain to you the merits of strategic and tactical asset allocation plus active and passive investment strategies, before recommending an overall strategy that you are comfortable with.
Once we have agreed a suitable strategy we will review your existing investments to assess their ongoing suitability as part of your new risk managed portfolio.
We will then build a bespoke investment portfolio on your behalf and provide you with a clear picture of the expected performance dynamics of your portfolio over time (naturally we cannot guarantee these numbers).
We are all aware that the taxman can be a considerable drain on our investment returns. To ensure your investment returns are optimised, we will position your new portfolio to take advantage of all available tax allowances afforded to you whilst ensuring that they do not compromise your financial plan.
With clear financial goals in place along your investment time-line, where appropriate we will access Individual Savings Accounts, pensions, onshore and offshore bond tax structures as well as a general investment account to optimise your annual capital gains tax allowances.
In certain circumstances, we may also recommend trusts to manage inheritance tax liabilities and help
As whole of market advisers, we have the advantage of being able to take a wide look at the market and our internal due diligence processes are regularly benchmarking suitable products, to ensure that we provide the best terms available for our clients at the point of implementation.
Ongoing service is a key aspect for our relationship clients, all of whom benefit from:
- Having a clear set of financial goals laid out on an investment time-line.
- Understanding the level of risk that they are ‘willing’ and ‘able’ to take.
- Having a portfolio invested in line with their bespoke portfolio risk mandate
- that takes the minimum level of risk required to achieve their goals.
- Having a clear understanding of the investment strategy that has
- been adopted.
- Knowing their portfolio is held in the most tax efficient manner.
- Only paying fee’s that are clear, transparent and crucial to the success of the strategy
- Understanding how their investments are performing against their goals on an ongoing basis
- And of course have access to portfolio valuations at the touch of a button or the end of a telephone
To arrange a no obligation meeting with one of our experienced advisers then please call us now on 01522 513191.