Why Regular Reviews Are So Important
A key aspect of the financial planning process is the regular review. Some financial planning firms review their client’s portfolios quarterly or half yearly with most providing an annual review to their clients.
If your IFA is not providing you with a review and you are paying ongoing fees, it is probably time to ask some serious questions.
At Mangu Wealth Management we carry out client reviews annually, sometimes more frequently if required. In the interim, we continually monitor the investment funds we recommend and keep abreast of any tax or legislative changes. Before our annual review meeting, we put together an agenda and invite clients to add anything that they wish to discuss.
Our annual reviews generally cover the following:
Update on Your Situation
Our annual review is a great opportunity for us to check in with our clients to find out how they are generally feeling about their finances. It is noticeable how a glut of negative news headlines can impact how in control a clients feels about their finances.
We can find out whether there have been any changes in our client’s circumstances that we need to be aware of or that could have a bearing on their desired lifestyle, for example:
A change of job.
A requirement for capital or further income.
An inheritance.
Update the Financial Plan
When we carry out an annual review, we update our client’s financial plan and determine whether:
We need to change any of the underlying assumptions.
We need to add any further goals or clarify existing ones.
We need to model any different ‘what if’ scenarios.
Most importantly, are they still on track to achieve or maintain their desired lifestyle.
Portfolio Review
We review the funds that comprise our client’s pensions and investments and determine whether:
Are the funds performing in line with expectations?
Do we need to re-balance the portfolios?
Are the fund’s investment objectives still the same?
Has the client’s risk profile changed?
Is the portfolio still in line with the client’s risk profile?
Tax Efficiency
We review the tax efficiency of the portfolio and consider:
Using ISA allowances.
Using CGT allowances.
Making further pension contributions.
Ensuring that each spouse is using the most appropriate tax bands.
Income Review
For those clients in retirement or seeking an income we will review:
The sustainability of that income.
Is income being taken in the most tax efficient manner from the most appropriate asset pot?
Is the level of risk being taken appropriate?
Protection Review
For clients with younger families we take into account life cover and protection policies and review whether:
The level of cover continues to be appropriate?
Estate Planning
For those clients looking at estate planning we take into account:
Has the estate grown in value?
What is the Inheritance Tax liability of the estate?
How can we mitigate the IHT liability?
A review of any gifting / giving strategies.
Have Wills / Powers of Attorney been reviewed?
Are ‘Expression of Wish’ forms fully up-to-date?
This is not an exhaustive list and other aspects of financial planning are often covered depending on the client circumstances.
Although we are always available to our clients, the annual review for us is a great opportunity to catch up and find out what is happening in our client’s lives.
Peace of Mind
We believe that regular financial planning reviews can provide a sense of empowerment - clients know that there is a clear path towards their desired lifestyle.
We also aim to provide clients with the peace of mind that their wealth is being managed by a trusted adviser and that we are looking to keep them on track to achieving their goals.
We love it when clients feel a sense of excitement when they realise that they have achieved or are on track to achieve financial freedom.
Get in Touch for Your Financial Planning Review
If your financial planning situation hasn’t been reviewed for a long time and you would like us to carry out a review for you, please do get in touch.