The Client
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David is a highly successful executive, living in London with his Wife, Jane and 2 teenage children. He has worked his way through the ranks to become Director of European Operations and is now paid a seven figure salary.
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He has accumulated a sizeable level of investment assets, a large proportion of which has been managed by another advisory firm. He has become disillusioned with his investments trailing behind the performance of the markets, the fact that his advisers appear to have no clear investment philosophy and seem keen on recommending changes to his portfolio which conveniently result in commission payments being generated.
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David has heard about proper, fee-based 'lifestyle' financial planning and is keen to work with a firm who practice it, as he feels his current advisers do not really understand him, his family or his aspirations and only ever talk to him about financial products - and often only when they want to encourage him to buy another one.
The Challenges
- To manage David's £5m investment assets in a consistent, coherent, principled and unbiased manner, with a view to preserving the family's wealth, minimising risk, achieving acceptable long-term returns and maintaining his investment discipline.
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To simplify David's affairs and improve his financial organisation.
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To provide David with a more rounded view of his present and future financial position and the actions required to help him achieve his goals - which include retiring at age 55 - rather than only focusing on his investments, as his previous 'financial adviser' did and most private banks or stockbrokers would.
The Actions
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Developed an evolving financial planning strategy which focused on delivering the outcomes David wanted for himself and his family.
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Constructed and managed a suitable investment portfolio, which took account of David's tax position and risk profile. Used institutionally priced asset class funds to capture more of the available returns at the lowest possible cost.
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Utilised a specialist third party investment administration platform, which consolidated and simplified David's affairs.
The Results
- David now has a portfolio which serves a specific purpose and has specific aims, rather than simply having 'some investments' which had no clear direction, as he did before.
- Instilled a disciplined approach to investing, reduced costs and helped David to capture more of the available returns on his investment portfolio, worth around £75,000 per annum over the long-term.
- Improved David's organisation and removed the burden of managing his affairs on a daily basis from his shoulders.
- David knows that with the correct planning and asset management, he can afford to retire at age 55 and maintain the lifestyle he and Jane enjoy, whilst also being able to achieve his goals of building a luxury holiday home in Devon and buying his own yacht and sailing it around the world once his children have both gone to university.