Outline of the Prosperous Service
The service offered to clients typically contains two key elements, a personal planning and mentoring service and a comprehensive Financial Plan, in writing.
The personal planning and mentoring service
helps you the client:
- to decide whether the services of a professional Financial Planner & Investment Adviser would be of significant benefit (and value for money),
- to understand the planning process and the principles of sound investment,
- to gather the data needed as the foundation for a satisfactory planning exercise and to decide on sensible planning assumptions,
- to define and cost your financial and investment objectives, especially those related to your desired future lifestyle, and to develop and implement a plan to achieve those objectives,
- to decide what size Emergency Fund would be appropriate to your needs,
- to review existing arrangements and to make changes likely to be beneficial,
- to construct lifelong cash flow forecasts, based upon prudent assumptions regarding cash inflows and outflows, future inflation, and future investment returns,
- to identify what would need to happen to deal with any anticipated cash flow problems, including transferring risk to insurance companies,
- to decide what financial issues would arise in the event of the premature death of either spouse or if either spouse became disabled and in need of long term care.
- to identify your personal tolerance to investment risk and loss and how to take it into account when developing investment portfolios suited to their requirements,
- to choose suitable investment products and investment funds with an appropriate risk profile and asset allocation,
- to reduce tax liabilities, including Inheritance Tax potentially payable by your heirs.
- to decide how best to give your children a grounding in financial and investment matters.
- to encourage co-operation between your professional advisers to optimise and coordinate their combined knowledge, skills and experience.
- to review and update your Financial Plans at regular meetings to take account of changed circumstances, including changes in relevant law and investment conditions.
Most clients find one planning meeting per year is sufficient.
Comprehensive minutes are provided after each planning meeting.
Many clients comment positively on the helpful discipline of Prosperous’s review and planning meetings. Usually they enhance peace of mind and result in renewed feelings of confidence in the future and reassurance that their financial and investment arrangements are in good order.
Appointments for ‘next planning meetings’ are arranged at the previous meetings.
All communications with clients are clear, fair and not misleading.
A comprehensive Financial Plan typically contains:-
- an introduction to the principles and practice of financial planning and wealth management,
- a detailed list of your capital assets and liabilities with a year by year record of their progress in building up of your Net Worth.
- an analysis of your capital, broken down into the various asset classes and risk categories.
- an analysis of your cash outflows between different categories of expenditure.
- an Income Tax computation with a calculation of net spendable income per year, per month and per week.
- recommendations for legal tax avoidance.
- lifelong cash flow forecasts to determine on stated assumptions to what extent there is a danger of running out of money (and when) or, if there is no such danger, the extent to which it should be possible to increase personal expenditure and/or gifts to family members.
- an analysis of the performance of clients’ investments over the previous 5 years, with comparisons with sector averages, volatility, and personal satisfaction criteria.
- recommendations where necessary for switches between investment funds.
- guidance on what to do when property or investment values increase or fall significantly.
- an analysis of potential Inheritance Tax liabilities, with recommendations for tax minimisation and estate planning.
- details of existing investments, life assurance and pension plans.
- details of your professional advisers, wills, enduring or lasting powers of attorney and similar data which is helpful not only to you but also (potentially) to your executors and trustees.
- details of the recommendations and actions related to the planned achievement of your objectives.
Financial Plans are tailored to your individual circumstances and can be a significant aid to self organisation and financial planning.