Investment Planning

Investment planning – an art form based upon mathematics to destroy hype. If a picture paints a thousand words, then this video interview with our Managing Director may paint far more:

Our view is that investment planning is where a truly independent planner’s skill is not simply optional; it is a requirement. This is not simply a case of “looking for the most suitable performance” or the “flavour of the month” – a qualified professional aims to help with a long-term financial plan. For example, we find it critical to get to know each individual client and their family when discussing any area of financial planning. Why is this important?

Let’s take an example; a newly married couple in respectable, well earning careers look to put a little aside. What factors could affect where they invest?

Well, some, but certainly not all of the factors we would consider would include;

  • A couple’s health – if this was poor, it would perhaps be advisable to maintain a greater proportion of their investment in a easily accessible form in case they are required.
  • Whether they plan to have children – who, bless them, are wonderful drains on a family’s financial resources, as all parents well know!
    • If so – approximately when, in order to allow us to plan for when they enter education and university, and the appropriate investments to match those points.
  • When they plan to retire and how much they want to be “earning” in retirement so that their pension plans can be appropriately provisioned if possible.

As you can see, this is not a simple “lets look for the best performer” discussion. Even when looking purely at performance, far more is involved than the raw figures of percentage growth. For example, how much risk has the investment manager taken to achieve that growth? How sustainable, and repeatable is that result? Anyone can achieve outstanding performance through blind luck occasionally – but further analysis will elicit if this is indeed the case, or whether there is a basis to suggest this will be repeated.

How do we achieve this analysis? Take a look at the range of Research Tools we use.

However, analysis and figures aside, the old maxim always hold true. Low Risk = Low Reward – you cannot have sustained High Reward without Higher Risk – anyone who tells you otherwise probably has a vested interest to convince you of such.

Professional financial advice from an expert in the field aims to filter the figures, decant the hype and recommend the appropriate mix of investments from low to high risk and everything in between.

Questions that may arise may include – why not just go to the first independent financial adviser on the street – or the first bank – or the first online ‘supermarket’ you come across? Also, where do you invest? An Open Ended Investment Companies wrapper? Or Investment trust? How about bonds, gilts, commodities, unit trusts, with-profits, with-out profits, unitised, Venture Capital Trusts, Enterprise Investment Schemes…..the list goes on.

We go through, step-by-step all of the possible factors that currently or in the future could affect your circumstances and propose preparations for such events. However as time goes on, the markets change, peoples circumstances change and so does their attitude to risk.

That is why we provide on-going servicing options for our advice (which we recommend all clients take advantage of) – contacting you at regular intervals to advise you of the positions of your investments, general trends and any particular need for change.

As recent events have shown, the true value of a financial planner is often only recognised (or not!) when unpredictable, massive events which shake the financial system occur; whilst we may not be able to prevent such occurrences, we can keep you immediately appraised of the effect on your investments and the options available to you, and ahead of time attempt to minimise your risk as much as possible within your targets.

With this personal continuous service, coupled with the fact that you are dealing with diploma level advisers from a family firm who want to build a long lasting relationship with you, as well as free 24 hour access via our iPhone app to your investment portfolio…can your investments afford not to consider us? Contact us for a chat.