Holistic Approach to Financial Planning
The Financial Review process is an individually tailored strategy designed to help you get the most out of your capital, to maximise tax efficiency and ultimately to achieve your financial objectives both now and for the future.
The Financial Review Process has several key stages, and is structured as follows:-
Establishing Client Objectives
Processing and Analysing Information
Investment Portfolio Construction
What do these stages actually mean?
Gathering Data
This stage will involve ascertaining a clear picture of your financial position as it stands today. Gathering data is relatively straightforward as far as "hard" facts are concerned, and includes areas such as personal income and expenditure, assets and liabilities and details of existing investments, pensions and protection policies.
The "soft" facts are those focused around what you wish to achieve, not only from a financial point of view, but also a personal one. You may like to consider: What sort of lifestyle do you wish to achieve? Is there any hobby or pastime you wish to undertake, but didn't know whether finances would permit? Back to top
Establishing Client Objectives
This stage involves looking at the "hard" and "soft" facts, and establishing your personal objectives, with a view to prioritising, and identifying realistic timescales for achieving your financial goals. Back to top
Processing and Analysing Information
The follow on stage involves comprehensive analysis the data collated to ascertain its overall effectiveness in meeting your current needs and obligations. The analysis also ensures that any current arrangements are cost effective, correctly structured, and where appropriate suitably invested. Back to top
Investment Portfolio Construction Process
This process encompasses a number of important steps:
Ascertaining client attitude to investment risk to provide an indication of risk tolerance levels.
Establishing a ‘neutral' asset allocation strategy based on your ascertained risk profile, which would then be tailored to the client's specific investment attitude and views, to produce a ‘tactical asset allocation' strategy.
The tailored asset allocation strategy is then applied to specific investment vehicles, again tailored to client requirements and objectives.
The final step is to establish the bespoke structure of the selected investment vehicles, through the use of fund supermarkets, tax ‘wrappers' and direct holdings. Back to top
Recommendation
As a result of our analysis, we will formulate a comprehensive and tailored recommendation designed to satisfy your personal and financial objectives, which will include:
- a personal cash flow forecast
- an asset and liability allocation and statement of ‘net worth'
- an analysis of any potential Inheritance Tax liability
- a tailored investment strategy
The recommendation will also encompass a full explanation of how each part of the strategy correlates to form the basis of achieving your overall objectives. The recommendation will also encompass a review of all existing investments, pensions and protection policies to ensure continued suitability. Back to top
Presentation
A comprehensive Financial Planning Report will be provided prior to a follow-up meeting to discuss the contents of the report, with the ultimate view of ‘fine tuning' the most suitable financial plan. Back to top
Implementation
Having agreed which sections of the recommendation you wish to effect, the next stage is to establish the most suitable method of implementation, with regard to the specific timing of each part of the recommendation. Back to top
Review the Plan
The Financial Plan is based upon a series of assumptions (which inevitably will turn out to be incorrect!). Additionally, personal and financial circumstances change rapidly, making it essential that a financial plan is reviewed on at least an annual basis. The Castle Court Consulting review process is optional and client driven, however is highly recommended. Back to top
Additional Issues
Additional benefits of the Financial Review Process include a personal Income Tax review, with a view to establishing what strategies, if any, can be implemented to provide income tax mitigation or reclamation, as appropriate, through a variety of tax mitigating investments and tax planning schemes.