The value of financial advice

Asset Allocation

Impact: +0 - .42% per year

How much should you invest in equities, bonds, and cash and which equities and bonds should you hold? Too cautious and you won’t get the returns you need. Too aggressive and you might find yourself losing sleep.

A financial advisor will define your objectives and identify the right mix of investments for you. This helps you increase your returns and protects you from over concentration risks that could severely damage your portfolio.

It’s difficult to attach an accurate value that applies to everyone so we’ve left this is >0% but often the effects of objective allocation are significant over the long term.

Signs you’ll benefit from expert asset allocation advice:

You’re unsure of your spilt between cash and equities at the moment.
You’re still adding more to your cash account each month despite your cash balance being larger than the next 3-6 months of expected expenses.
You’re not 100% confident your allocation is correct based on your financial goals.

Get advice on your allocation

Investor Coaching

Impact: +0 - 1.5% per year

It’s about time in the market not timing the market…. It's easy to say but much harder to do the day your investments fall by 20%. A financial advisor will act as a voice of reason between you and an expensive mistake. Your advisor can provide sound, objective advice, helping you stick to the plan and remain invested. They’ll help you buy low and sell high, not vice versa.

Signs you’ll benefit from expert Investment advice:

You are not a professional investor.
It’s been two years since a professional investor completed a full review on your investments; or
You’re unsure of the best course of action in the event all your investments dropped by 25% or more.

Get Advice on Investing

Tax Management

Impact: +0.5 - 4.2% per year

Being tax-efficient is one of the most important ways to improve your financial well-being in the UK. It’s so important because our country has effective tax rates of up to 60% for those earning between £100,000 - £125,140. By simply utilising tax-efficient products like a pension or a Venture Capital Trust you can generate tax relief which can boost your investments without reducing your disposal income.

Signs you’ll benefit from expert tax management advice:

You earn more than £100,000. At this income level, you are paying up to 60% effective tax. Your tax level is so high you must maximise as much tax relief as you can. Speak to an expert, you’ve likely got a lot to gain!
You’re not paying into a pension.
You’re unsure how much you should pay into your pension each month.
You’re maximising your individual savings account (ISA) but not paying into a pension or a Venture Capital Trust (VCT).
You’re a business owner or self-employed.

Get Advice on tax management

Cost Management

Impact: + 0.66-0.92% per year

A financial adviser can reduce your charges by providing access to institutional investments with lower costs. Your adviser can also review insurance products to ensure you only pay what you need. Cost savings can be funnelled into well-managed investments letting your wealth compound and grow!

Signs you’ll benefit from cost management advice:

You have not reviewed insurance products in the last two years
You’ve just experienced a key life event; brought your first home, had a child or retired and not reviewed your portfolio based on your new situation.
You use multiple different providers for saving & investing and you’re not sure on the costs of each.
You’re not sure what fees you pay for your savings & investments.

Get Advice on Cost management

Portfolio Rebalancing

Impact: + 0-0.42% per year

Once you’ve got the right mix someone needs to ensure it stays that way. A financial advisor will review the portfolio objectively and rebalance as required. This means you maintain the right mix of investments and don’t take too much risk. This is particular important if you’re paid partly in equity to ensure you don’t become overly exposed to your employer.

Signs you’ll benefit from expert portfolio advice:

You have not reviewed the composition of your portfolio in the last two years.
You’ve recently changed role and have not received your portfolio in light of your change in compensation.
You’ve just experienced a key life event; brought your first home, had a child or retired and not reviewed your portfolio based on your new situation.
You’re not 100% confident your allocation is correct based on your financial goals.

Get Advice on Your Portfolio

Withdrawal Management

Impact: +0 - .48% per year

At some point you’re going to want to withdraw money from your investments, otherwise there’s not much point in having them. The best way to do this is to plan for withdrawals. Once you decide you want to upgrade the house, send the kids to private school or whatever the reason your advisor can with you to make sure you’re moving to cash at the right time meaning you’re not forced to sell in a dip. Similarly, when it comes to withdrawing money regularly in retirement you’ll want to make sure you are withdrawing from the right pots first as this can have major tax advantages.

Signs you’ll benefit from expert withdrawal management advice:

You’re planning a large expense such as a new home or sending a child to private school/university in the next five years
You’re planning to retire in the next ten years.

Get Advice on tax management

Income Management

Impact: >0% per year

Diversified portfolios produce multiple types of income at different points in time. Some of this income is taxable and a portion of that is capable of tax relief. An adviser will ensure all income remains invested tax-efficiently. Your advisor can also help with budgeting to ensure you do not need to dip into your investments prematurely.

Signs you’ll benefit from expert income management advice:

Within your portfolio, you have income-generating assets such as buy-to-let housing or dividend stocks.
You do not have a three to six-month emergency fund and a clear monthly budget.

Get Advice on tax management