STAYING IN POWERFUL RELATIONS WITH THEM – OUR CREDO
We are confident about the fact that clear goals, a long-term investment philosophy, a balanced portfolio and low costs create a path to fulfilling your financial goals. There’s investing, and there’s smart investing... we only do the latter!
We help you in creating a financial strategy that represents your personal circumstances.
Getting to know you is a financial advisor’s primary goal — an approach centred around your life’s priorities.
It’s time for a financial strategy that puts your needs and priorities front and center.
Roman philosopher Seneka said “If a man does not know what port he's steering for, no wind is favourable to him.”
So to start the journey to your financial future you need to have a crystal clear picture what do you want to achieve.
Some people know it very well, for others its more vague.
As it is a life journey the good plan is a right thing to have.
Before starting to make it answer to yourself the below questions:
What do I want
Where am I now
What is right for me
How to make it
It is important to analyse your current financial position, your income and expenditures,
your duties (obligations) and cash flow, your family needs and expectations, strong and
shacked parts and based on this information create a plan which will guide you through
your financial journey.
Detailed plan will help you to cut losses, strengthen gains, and avoid the pain and panic
of a financial or lifestage crisis.
At another level, a plan is a simple matter of listing out your needs and wants, and
deploying the money in right directions so that you have them when you need.
1) Start by setting financial goals
2) See where your money goes, put expenditures under control by using 50/30/20 proportion
3) Secure your family & finances and cover your life time risks
4) Get rid or reduce toxic debts (payday loans, credit card balances, high mortgage payments)
5) Choose the investment strategy that suits you and be aware of it and stay alert
Capital Investments are used to create an investment portfolio with collection of assets
owned by an individual or by an organisation, and created with the expectation to earn a
return, with a direct correlation between expected return and the investment's expected
Quite often, it is used for medium, long-term investment needs & objectives.
The vast range of asset holdings which are available for portfolio investment makes it a
great alternative to the bank accounts, as even with very low risk profile the annual
return will be far higher that the bank return.
Portfolio investment is also different from direct investments, which involves day-to-day
The management of the portfolio is made by professionals in an active, regular way and
very much based on the client’s risk profile and his long term wishes.
The portfolio lets you simultaneously hold and trade between the following assets in any
Unit Linked Funds
ETFs, ADRs and GDRs
Commodity Index Trackers
This all means that investments cannot be held as if they were stamp collections; they
must be managed diligently in the light of changing markets. It is certainly true that we
are witnessing incredible integrations of the global economy, and the speed of markets
reaction has rise in these last 7-10 years.
What is the risk?
The value of a portfolio depends on the performance of the assets chosen and that is
why it is imperative to have professional active management.
What are the benefits?
- Investments designed for maximum flexibility
- Investments designed to match an investor’s risk profile
- Personally managed by professional Asset Managers
- Highly competitive charges structure
- Online valuations
- Charge free withdrawals
- 24 hours access to investment information
- Regular updates from Managing companies
If you are currently a UK resident or have previously worked in the UK you may have a previous
DB or DC pension scheme in the UK.
What are they and what you can do with this:
Defined Benefit Schemes
A Defined Benefit scheme is an occupational pension scheme provided by an employer for its employees, where the benefits at retirement are defined as a proportion of salary at, or close to, retirement.
Defined Benefit schemes are also often referred to as Final Salary Schemes.
As required by the Pensions Freedoms Act April 6th 2015, any Defined Benefit Scheme over £30,000 must take additional FCA advice from a Pension Transfer Specialist.
The accrued pension is a reflection of years worked and your final salary before leaving and the Cash Equivalent Transfer Value (CETV) is based upon Gilt rates which are presently at a record low thus producing such a high cash value considering the length of service.
Moving this and other schemes to ROPS (recognised overseas pension scheme) offers fairer and more flexible choices, the main one being that your spouse and children (regardless of age) continue to receive 100% of your pension as well as the residual pension “ pot “.
Defined Contribution Schemes
The contributions into a Defined Contribution scheme are used to establish a pension fund. The size of the fund is determined by the amount of contributions (by both the individual and the employer), the charges deducted by the pension provider and the investment returns achieved over the term to retirement.
Defined Contribution schemes are often referred to as Money Purchase Schemes.
As these schemes are invested in Stocks and Shares, most clients have no current advisor or assistance with these plans!
Either you have a DB or DC pensions it is vital to know the advantages of transferring a pension:
1. ROPS offers greater investment freedom than your current arrangements
2. You can consolidate your various pensions by transferring to a single pension plan
3. A ROPS allows you to access your lump sum and pension from the age of 55 onwards
4. There is no requirement to purchase an annuity
5. In the event of a plan holder’s death the entire pension fund may be passed to your beneficiaries without any Inheritance Tax
6. ROPS offer a broad range of investment options to suit the client’s requirements. These include equities, fixed interest investments, cash deposits and mutual funds
7. Investments held by a ROPS are usually tax exempt meaning that the scheme assets grow free of capital gains tax
8. ROPS offer a broad range of investment options to suit the client’s requirements
9. ROPS is a trust based pension arrangement where the scheme assets are held for the member by the scheme trustees. The ROPS main intention is to report to HMRC and ensure that only FCA approved Investments are bought. The ROPS is not intended to buy and trade investments. For these needs an Investment Platform is used upon the instructions from the trustees
10. Regular Investment review and reports are provided with all the information of investment structure, performance, fees
Issues to consider before transferring to a ROPS
The existence of any guarantees within a current Defined Benefit Pension will be lost upon transfer. These will be highlighted in an independent report
Whether there are exit penalties upon transferring
ROPS v SIPPs
The two vehicles for pension transfers are either a ROPS, as mentioned above or a SIPP which is a self invested pension plan which is primarily housed in the UK.
There are two distinct advantages of a ROP scheme over a SIPP scheme and they are:
The Life Time Allowance (LTA) rules for a ROPS is far more beneficial and flexible
ROPS pay their drawdown pensions gross so you benefit from deferred taxation
Let’s say you are a young person after leaving college and have a new well paid job, maybe
even have left home. The amount of things that suddenly become available for you is colossal.
How strong is the pull to spend all that new income, however how vital it is to quickly develop
the right habit of saving!
It is essential to have an emergency fund set aside to cover unexpected expenses, normally 3/6
months of usual expenditure.
It good to have some savings in case of the unexpected, not planned, “what ifs”…
What if you will decide to open a new business in 5 or 10 years and banks will not give you the
credit you might need at that time.
Possibly ruining your dream business!
So what can savings bring!
What if you will be desperate to buy that new car - your savings will let you negotiate a much
better price as you are will be buying it with cash, and no monthly car payments.
What if you decide to buy a house and will need your own contribution. Your negotiating will go
much better when you have a significant amount to put as a payment for your new home. Very
likely the interest rates would be much better for you and more than likely your financial
position will allow you far more choice!
What if the desire to step out and travel the world for a year, having some money for this
would make your journey so much easier!
What if you would want to give your money for the charity purposes to help build a school, or
buy the Christmas presents for the children in the orphanage.
There can be 1 million ‘what ifs’ and whatever that reason it is always best to be prepared!
When you have children, you want to make sure that your children’s future is secured,
especially when it comes to their education. With the cost of education rising every year,
it’s best to start investing as soon as possible.
Most parents realise that it will be many years ahead before their children grow and
understand what they want to do in their lives, it is therefore important to be able to help
them to make the best decisions, including financial support as well.
Quality education is a good starting point for your children, it provides them with a firm
foundation for the future.
When to start?
The earlier the better!
The best time for education planning is around the time your children are born as in this
case there are more years ahead for you to build money in an education fund.
Why to save for education?
Because you want your children to have the best opportunities!
Whilst, as parents, there are many unanswered questions like, what their children are
going to do with their lives, which career they choose, which country, which industry, the
life style they prefer, there is the basic desire to “see their children right “!
How much do I need to save for education?
There is no exact answer to this question as education cost are different from country to
country. Some people will prefer to send their children to private schools, others will go to
the public schools. In some countries university cost are low or even free whilst in others
they cost a fortune.
It is therefore difficult to know what size education pot you may need however there are
some certainties – the cost of college fees, living support, ancilary college activities and
educational expenses like books and special assignment activities. All the aspects mount
up to produce a substantial need of funding!
How to save for your child’s education:
Setting aside money on a regular basis over the years leading up to the need for funding
your child’s needs is a must whether that be with capital injections or regular monthly
Regardless of the choice of university or college, parents certainly should start preparing
well in advance, the earlier the better!
Setting money aside, well in advance, allows parents to be certain that whatever may
happen to their finances in the future it will not affect their children’s education.
RETIREMENT SAVINGS HOW TO PLAN FOR A DECENT PENSION WHEN YOU RETIRE...
Without a doubt, whatever age you are, people believe that when the time comes for them to
stop working there will be enough money to enjoy life to the full.
Most people believe this but few actually achieve it without some sort of sacrifice.
As governments worldwide are failing to provide, you must take care of this part of your life.
An old maxim was always ‘to look after the old person you have to start young’ and this is a
very sensible way to view pension planning.
To create the solid retirement plan you should to answer these questions:
- What you already have income wise?
- What are the financial obligations you have now?
- How long will it take to complete these payments?
- What kind of income do you want when you retire?
- When do you plan to retire?
- What sort of life do you want when you retire?
- Will your current pension arrangements (corporate & private) be sufficient to pay for that life?
- What can you do now to improve the situation?
If the answer to the above questions don’t make you happy it is the right time to take some
vital actions, whether it is either:
Consolidation of current pension arrangements.
Building up further pension benefits from income and/or capital.
So future pension planning and maximising your existing arrangements are both of paramount
Pension Plan has 2 simple stages:
1) Accumulation of the capital
Small regular contributions during your working career can accumulate into significant capital.
Please be careful while choosing the instrument for it. Make sure it will be flexible enough to
be able to follow your life circumstances, will have low maintenance fee, now withdrawal fees
or fees for missing payments, as high fees can ‘eat’ a lot of the potential growth.
2) Spending the capital at retirement
Let’s admit it, this part is more pleasant.
When it comes to the retirement you can chose to cash out whole your savings and use them
in a way you want or you can keep the capital amount and take the sufficient income on
monthly, quarterly or annual basis.
Plan your pension to provide the desired amount of income and the standard of living to which
you are currently accustomed!
Any company’s level of expertise, trustworthiness or popularity can be easily checked when it comes to proven cases…
We have stockpiled hundreds of successful consulting occasions throughout the 29 years of history the company has been in the industry.
See below a few of them
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