Investment Management Case Study
Broadway Financial Planning helped Alan and Wendy Ross to consolidate their current investments into a meaningful strategy and combine with a recent inheritance in order to have a clear plan of their future.
Alan and Wendy had accrued a large number of investments over a number of years held directly in property, offshore bonds, ISAs and pensions. Whilst some of these had performed reasonably over time, they felt they had lost control over the ongoing suitability of these and wanted some clarity on how they could plan for the future. In addition, they had a lump sum to invest and needed guidance on how to do this sensibly and efficiently.
Challenges facing Alan and Wendy
Alan and Wendy were disappointed that some of the investments previously made had not performed as expected but they were unsure of what options were available to them. They did not feel that the risk approach matched their current views but did not know how to go about reviewing these and making considered changes.
They had lost confidence in their ability to make further investment decisions but were of the opinion that this was still the most appropriate route for them in order to achieve their lifestyle goals.
How BFP helped
We spent some considerable time discussing with Alan and Wendy what they hoped to achieve for them and their two children in the near and long term future.
We assessed their current and future expenditure requirements, using specialist software and agreed assumptions. We were then able to forecast their income requirements and provide a long term view of what goals were affordable and whether any compromises needed to be made.
We helped them to understand their investment risk tolerance and how much risk they could afford to take before their plans could be knocked off course.
We then analysed their existing investment arrangements and provided them with a detailed overview of their current position. This included explaining where performance of funds had been unacceptably poor, where assets were more risky than were acceptable and where costs and charges were prohibitive.
We finally presented a simple, consolidated but highly suitable investment strategy.
Benefits of working with BFP
The changes enabled Alan and Wendy to consolidate their existing arrangements in one place making management of these much easier.
The new investment strategy resulted in a reduction in the volatility of the previous arrangements and the costs of investment management.
Alan and Wendy were confident in their decisions and that they could achieve their goals with this new strategy whilst taking less risk. This resulted in their peace of mind!
The names in this case study have been changed to protect our clients’ identities.