Annual Review
Annual Review
Completing regular reviews for clients is crucial to helping us ensure that they remain on track to meet their financial objectives and that the strategies that we recommend are appropriate for their attitude to risk.
The review has several distinct stages
- Update the “hard facts” of personal details, assets, liabilities, income and expenditure
- We request clients watch our presentation on Understanding Investment Risk & Return
- Clarifying your objectives is a short form that asks client to select from a set of answers the most appropriate to them when it comes to income needs, capital, financial advice requirements and their understanding of our presentation on Understanding Investment Risk & Return
When we receive this information we can provide a Statement of Financial Position Objectives and prioritise each of these objectives.
Investment analysis of these objectives is also possible as we seek to establish the best solution for individual needs; typically identifying a required rate of return for each objective and matching a suitable investment strategy to meet this.
As an example if a client requires a set income each month which is vital to maintaining their standard of living and we calculate that from their capital the required rate of return is 3% we would recommend a defensive strategy with low volatility – the importance of the income is key, why take risk if you don’t need to?
Another example is that we have identified surplus capital that clients would like to pass to the next generation and maximise returns; this may be twenty years or more away and volatility is not a major concern and would not impact their standard of living – for these a Balanced investment strategy is more appropriate.
From this we can then start a discussion that does not only help reaffirm what we already know or are working towards, but also ensures we stay up to date with changing circumstances or spot opportunities to improve existing plans.