2023 has been another challenging one for investors – market volatility set against the lure of cash savings has been a particular cause of nervousness this year – so the need to emphasise the value of ongoing advice has never been greater.
So with Christmas just around the corner, we’ve taken the time to reflect on what it means to be a client, and have created a list of 12 ways we’ve supported them over the past year.
We hope it helps you too.
1. A plan for prosperity
This, of course, is the starting point for anyone going to see a financial planner.
A good financial plan provides a solid platform for everything that’s still to come. The plan will evolve over time and should be flexible enough to adapt to any big life changes. The good (such as a new arrival or a new job) and the unexpected (like health challenges, or redundancy).
2. Time saved
A financial planner is actually a crucial time saver. It’s not mandatory to seek advice when starting a pension, setting up an investment portfolio, or writing a will. But there’s an inherent benefit to having everything in one place, making sure all areas are joined up.
A consultation with a planner will help you see the whole picture and ensure the money you set aside, and the plans you draw up, are all working towards the same goals.
3. Investment advice
Financial advice isn’t all about playing the market. But there’s no denying a critical part of growing your wealth is investing wisely in a portfolio.
What asset classes should you focus on – and which should you avoid? How do you keep a balanced investment portfolio and protect your wealth from market dips? By adopting a rigorous, systematic, evidence-based approach, a good financial planner will make the difference between speculating and investing.
4. Peace of mind
The last couple of years have seen dramatic fluctuations in financial markets. When big changes happen, the media often focuses on ‘how many millions’ a dip in the market has wiped off investments. And while it’s true these occasions might have a short-term impact on a portfolio, what we do as financial planners is take some out of the sting out of the bad news. We can help show you, through modelling and using evidence from previous downturns, in the longer term your investments are still in good shape.
5. Tax efficiency
Tax is an absolutely vital area of financial advice – whether that’s dealing with capital gains, keeping track of ISA allowances, or reducing inheritance tax liabilities for the next generation. We’ll help to develop personalised tax planning strategies tailored to your financial goals.
6. Help with high inflation
One of the biggest talking points this year, financially at least, is inflation. In times like these, having a good financial planner is very important. Diversifying your capital, in the stock market or bonds, is important to give yourself a rate of return above inflation over the longer term.
7. Financial education
The world of pensions and investing is chock-full of jargon and buzzwords. The job of a financial planner is to explain things clearly so you’re in a better position to make the big decisions.
The FCA wants firms to ensure their customers “fully understand all aspects of their investment products and services and that your firm does not exploit limited understanding.”
So a big part of any good planner’s job is financial education. We provide you with regular market commentary, updates and engaging blog articles to ensure you’re fully informed.
8. A trusted opinion
One of our roles as an adviser is that trusted second opinion. Of course, we expect many will go to those close to them, family, and friends, for advice. But often it’s an objective voice that’s needed. It could be talking about the thorny issue of legacies and estate planning, or making sure you can keep your head when markets are up and down and prevent biases creeping into decision making.
9. Annual planning meetings
A key part of the work we do comes down to our annual reviews. These are a chance to revisit your plan against your goals and objectives. We’ll talk over any potential changes that might affect you and your portfolio, for example new tax rules or significant regulation. We are also available in between times to answer questions or just to chat.
10. Protection from the scammers
One area of concern highlighted by the FCA recently was that it believes the financial industry isn’t doing enough to protect clients from fraudsters. Pensions are a growing target for scammers, with increasingly sophisticated ways that criminals are trying to con people out of their savings.
We have several processes in place to give clients peace of mind they’re protected. This includes ensuring your data – and your money – remain safe.
11. Sustainable investing
The move towards a greener, more sustainable world is changing many aspects of investment.
We’ve embraced this sustainability drive, but it’s important to get things right, for example not getting caught out by investing in firms that are simply ‘greenwashing’ (when sustainably becomes a marketing gimmick not a serious endeavour). In the last year or so, we’ve had very positive conversations with our clients who are interested in making sustainable changes to their lives and investments, and what we can do to help.
12. Unrivalled personal service
Of course, good financial planning isn’t confined to a mere 12 days, it’s all year round. And it’s not even just about you. A good financial plan is multigenerational, involving spouses, children and even grandchildren. What we’re aiming for is a personal service that helps you see the wood for the trees. And, knowing that everyone’s financial plan is unique, finding something that’s personalised to your needs.
We hope that rundown was helpful. And a very Merry Christmas!
