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Category Archive Uncategorized

Bydylanbbd

Asset Allocation

Asset allocation is the phrase used by financial professionals and might sound fancy – but all it is – is a spread of investments.

When I place a persons investment money into funds, it’s common sense that you don’t put them all in the one area. Say for example I was investing £100,000, then I would invariably use 10 funds, and I would not put all this money into 10 different UK equity funds – that’s the old saying about putting all your eggs into the one basket.

What I would do for this person is pick a range of areas and types so that you get a spread of areas and if bad news hits one area, then it will only affect any investments in that area but not everything. Let me give you an example of what I would do today –

LOW RISK FUNDS

  • UK based Sustainable fund
  • Global Sustainable fund
  • UK Growth portfolio

MIDDLE RISK FUNDS

  • American growth
  • European Growth
  • Global Opportunities

HIGH RISK FUNDS

  • Global Startups
  • Global Technology
  • American Growth

Asset allocation means that you allocate your assets to a wide range of possibilities, and if one fund fails – then it doesn’t bring the house down. The only way to do logical investing is to do such a spread AND to continually keep your eyes on things as everything will always CHANGE.

All you need to do on an ongoing basis is ensure that you always have a spread of areas, types of funds etc – so that you can capture the good areas and minimise losses. There is nothing scientific about it – just plain old common sense.

What we do at MAP is invest a clients money and then monitor this at regular intervals and if economic conditions change and a fund starts to lose money or even go down in value, then we contact the client and change it. In our opinion this is the ONLY way to invest money. What would you rather have ?

1. Somebody carefully watching over what you invest in and adapting it to current conditions OR

2. Put money into an investment and then walk away and do sweet nothing

I know which one I would do – and that is what MAP DOES.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority. For any enquiries, contact Andrew on 07957 836211 or enquiries@mapfinances.co.uk

Bydylanbbd

‘Aren’t you the client’?

Somewhere in the mists of time the relationship between advisers and their respective firms and networks has in some cases sadly eroded.

Advisers themselves treat their clients with respect and professionalism building a binding long-term trust between both parties.

So ask yourself this question ‘Am I being treated the same way’? Do you get the same respect and trust, do you feel valued as a client because when all is said and done that is exactly what you are? You probably pay a lot but do you get a lot in return?

At MAP we approach this in a different way, our team are at the core of our business and central to everything we do. We work closely with them to help them build a successful and profitable business with a raft of support tools designed by them, our view is that they know better than us what they need and we work together to build our support model to the benefit of the whole business.

At MAP we are proud to display our ‘Investors in People’ award signifying we commit to making work better for all our team. This for us epitomises our commitment to how we interact with individuals and treat them in a fair and supportive way.

Does it work………NO ONE EVER LEAVES MAP AND THAT ALONE SPEAKS FOR ITSELF

If you want to feel valued then give Ian a ring on 07788-566547 and let’s discuss how we can bring a smile to your face again, our advisers don’t sink, they swim.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority. For any enquiries, contact Ian on Andrew on 07788 566547 or ian.clisby@mapfinances.co.uk

Bydylanbbd

Change

Everyone it seems ignores change, but in my opinion, the only thing that is guaranteed – apart from death and taxes of course – is that EVERYTHING WILL CHANGE. This is not a maybe or a might but WILL change.

What I have never understood is why people invest money and then just basically leave it alone for the cobwebs to attack it at random as that is just asking for trouble. The only way that returns are likely to go then are down the way, so why leave it alone?

OK I will admit that you might take out a mortgage fixed for 5 years and you won’t change that, but that is to cut your long-term costs, so it is logical. But can you imagine a Building Society giving YOU a mortgage and leaving it for 25 years at the same rate – absolutely no chance, because they would invariably lose money over the long period. What they would do is change this as and when base rates at the Bank of England changes, so that they continue to make money on a mortgage, just as any business would do. So why oh why do people invest money and leave it invested for a long time without change – apathy? laziness? lack of knowledge? Who knows why people do this, but I have come across a lot of people who do this with their pensions and investments, which I can half understand, only because the pension is a long term savings contract, but they will still lose out nonetheless.

From cases that I have seen over the last few years, a lot of investments and pensions that have been left to stagnate will get around 2% to about 4% per annum, whereas if something is actively managed, then you would be looking for 6% to 8%. That is a world of a difference, and makes you want to shout some people out of their indifference. A lot of people will merely stumble through with their 3% or 4% and think that they are doing not too badly – but this is because they do not know what is out there to compare it to.

My message is simple – EVERYTHING WILL CHANGE, so if you have investments or pensions, they need to change as well, and if you don’t – you will lose out.

What we do at MAP is invest a clients money and then monitor this at regular intervals and if economic conditions change and a fund starts to lose money or even go down in value, then we contact the client and change it. In our opinion this is the ONLY way to invest money. What would you rather have?

1. Somebody carefully watching over what you invest in and adapting it to current conditions OR

2. Put money into an investment and then walk away and do sweet nothing

I know which one I would do – and that is what MAP DOES.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute an endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority. For any enquiries, contact Andrew on 07957 836211 or enquiries@mapfinances.co.uk

Bymapfinancesadmin

Why Accountants should do Tax Planning

As an accountant myself, I know that many accountants don’t want to stray into the financial advice market in case it goes wrong. It doesn’t need to be as black and white as that though.

When doing clients’ accounts and tax returns, it is easy enough for an accountant to recommend that someone see an Independent Financial Adviser (IFA) and potentially concentrate on pensions. You may have noticed when doing their accounts, that their tax bill has increased, and just about the only way to reduce that is contributions into pensions. This means you are at least helping your clients whilst not actually giving advice. They get the best of both worlds and is something that you won’t be held accountable for, but may get an income yourself from.

Accountants today should only recommend independent advisers, and that’s what MAP are. Moreover, the way we do our investing process keeps it that way, because we don’t outsource our investment process. What we invariably do for each client is invest in a spread of 10 investment funds through an investment platform, and then monitor those funds quarterly thereafter to ensure the client is always invested in funds on our approved Recommended Funds List.

In other words, we don’t let things drift, which is important when doing anything like this. Most people – even those that do their own investing – will treat investing as a one-off exercise, when in fact it needs to be a continuous exercise. MAP looks at all the funds that clients use every quarter, and if we are not happy with any fund, we will look to switch to others that we are happy with; so it is constant reviewing.

What could be better for your clients than using this kind of process, and your clients will love you for recommending this to them. They will then feel you are really looking after them with this kind of recommendation, and this will increase loyalty and client retention. Bear in mind we will also give you a percentage of the initial fee so that you can benefit from this as well as your client, and enable you to build an additional income stream for your business.

If you would like to find out more information or would like to start investing today, please contact Money Advice & Planning Ltd on 0345 241 1808 or e-mail us at enquiries@mapfinances.co.uk.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.

Bymapfinancesadmin

How long will your pension last?

From April 2015 when the then Chancellor George Osborne changed the rules and brought in pension freedoms, people have suddenly switched from buying an annuity to flexible drawdowns, where they can take out what they want when they want.

Now the FCA doesn’t have a problem with this, but they do have a problem with education more than anything else. They reckon that people are just walking into a nightmare, as there could very well be a problem at some time in the future when they will run out of pension money.

What on earth do these people do then, apart from telling a tale of woe? Pensions, as the FCA see it, are for when you retire, and if you take out a lot of money before you retire, then you won’t have it later. You can only spend it once after all!

If you run out of pension money in retirement – what are you going to live off? The State pension is certainly not enough for a comfortable life-style. How long are you going to live? Have you taken into account housing costs? What about care costs?

What we attempt to do at MAP is create a simple spreadsheet that shows your pension fund through the years to come, taking into account modest growth and withdrawals. Based on this information, we give a best effort at telling you how many years it might last. We only ever use low rates of growth to be pessimistic – 3% for cautious investors, 5% for middle risk investors and 7% for high risk investors – and we tend to work on an average of 6% withdrawals per year. So if you are a cautious investor, you can expect your fund to go down by about 3% per year, and therefore we need to look at longevity.

What we do in these spreadsheets is put in an estimate based on the information we have of how many years we think you have left to make your pension last. Having this kind of information is priceless to our clients and helps them to plan things out a bit better than they were before.

So, if you need some help in planning your retirement, please ask us for a forecast tailored for you. If you would like to discuss any aspect of retirement planning with Money Advice & Planning Ltd, please contact us today on 0345 241 1808 or e-mail us at enquiries@mapfinances.co.uk.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.

Bymapfinancesadmin

Accountants, Lawyers and IFAs – A Team Approach

Business people making introductionsFinancial, legal and tax advice are areas conducted by professionals adhering to their own sets of standards and qualifications, with their own professional bodies and regulators.

These advice professions are no different to other business sectors though when it comes to facing growing pressure to retain their existing clients, and more importantly, to win new clients and discover sources which will provide those new clients.

Legislation such as the Legal Services Act (LSA) and the Retail Distribution Review (RDR) has forced the legal and financial advice professions to introduce more client centric business models and, at the same time, become more competitive. This in turn has created a growing pressure for these advice professions to diversify and expand their business propositions in order to be more competitive.

Working more closely and proactively with a professional IFA can provide a very simple but effective solution to this problem.

Given the overlap between many areas of tax, legal and financial advice, a number of firms have seen the potential for Accountants, Solicitors and Independent Financial Advisers to work together to leverage each other’s client relationships. It provides those clients with a more holistic, joined-up and value-added approach to advice, and at the same time resolves the challenges of retaining existing clients and finding a source of new clients.

If you would like to find out how Money Advice & Planning can add value to your business and your client relationships, please visit us at www.mapfinances.co.uk and use the contact form. Alternatively, call your local MAP adviser at a time which suits you.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.