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Investment Planning and Financial Advice

What is Investment Planning and how can it help you?

Investment Planning should be important if you have any form of savings. Whether it is cash, stocks or shares, Individual Savings Accounts or Bonds, you want them to work hard for you.

Inflation over time eats into the real value of your investment.

Investment Planning is used to help you make the most of your savings. It ensures that over the long-term, the returns on your savings beat inflation. It will also help you meet your goals and objectives. Effective investment planning is used to control risk and volatility within your investment. We have vast experience in managing clients’ investments for them. 

Our initial meeting is without obligation  and completely free of charge. It allows you to find out more about us and our advice services.

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Our initial meeting enables us to find out more about you and how we might be able to help you. The meeting is provided at our expense and there is no obligation on your part.  Our Video outlines our services

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Six Essential Steps when reviewing Investment Planning

You should use six steps as an investor. This will help to ensure your personal recommendation and  your investment plan performs as expected. Understanding and implementing each of these steps is important. The six steps are :

  1. Identify your goals and objectives
  2. Assess risk and asset allocation
  3. Portfolio creation
  4. Choosing the right investments
  5. Use tax-efficient investments first
  6. Review and monitor your investments 
Investment Planning

Six step investment process

Identify your investment goals and objectives – With any financial plan, it is essential to understand them. Your Savings Accounts and investments might be used to generate an income for you either now or in the future. Alternatively, you might be looking for growth on a lump sum investment or a combination of income and growth. It is also important to consider how long you wish to invest.  

Investment risk and asset allocation – there are primarily four types of asset classes. These are Stocks and Shares (also known as equities), Bonds and Fixed Interest, Property and Cash. Each asset class has additional asset classes within them. For Example, UK Equities are a sub-class of Equities. The mix of the assets within your portfolio determines the risk of your investment plan. For example, if you have 100% equities, your investment portfolio will have a greater chance that it will lose money compared to cash. Getting the correct mix of assets for the level of risk you wish to take can be very difficult.  

Creating a suitable investment portfolio – Once you understand the level of risk you can take and the period you wish to invest for example short term or long term), you can then build an appropriate investment portfolio. In the UK, investors have the choice of thousands of different investments to choose from. However, filtering and selecting the best ones is very difficult. Most UK financial advisors use sophisticated software to recommend suitable investments.

Using the right investments – Picking suitable investments for your portfolio is essential. Whether you choose low-cost indexed or tracker investments, Sustainable or ESG-based investments or specialist funds, you need to understand how they interact and affect your personal financial plan. Due to the complexity of this part of the process, we recommend you take financial advice.

Tax Efficient Investing – In the UK, investors have many tax breaks. This allows you to use tax-efficient investments and allowances such as capital gains tax allowances. Using the allowances each year makes a huge difference to the returns you might receive on your investments.

Monitoring and reviewing your investment plan – It is essential to monitor and review your investments regularly. Without this final step, you will be unlikely to meet your goals and objectives. We recommend that you conduct an investment planning review at least every six months.

Why should you monitor and review your investment portfolio?

With the advent of technology and computer trading in the global stock markets, it can be argued that investments change in value more quickly than they did. The access to 24-hour news and social media has highlighted the situation. It is essential to ensure you can react quickly to changes and monitor the performance and fine details of the investments you hold.  This is not straightforward. One of the benefits of advice is the coaching and guidance we give. We always recommend seeking professional advice from an investment specialist.

Why is an investment process necessary?

An investment process is vitally important. It ensures that you maintain a solid discipline. The aim is to control risk preferences and, most importantly, meet your goals and objectives. Without an investment process, it will be impossible to do this. The investment process might include specifics such as when to rebalance your portfolio. It might also have the types of appropriate investments, such as sustainable or ESG investments.

We can help you with your investment planning?

As independent financial advisors, we have a wealth of experience that spans many years. Our investment Planning service forms part of our overall financial planning service. Our financial planners use the latest technology, processes, and systems to build an investment plan that will be unique to you. We can also factor any investment preferences you might have into the financial advice process, such as using sustainable investments.

Investing the correct way is a complicated process. If you would like to discuss your situation with our financial advisers, do not hesitate to get in touch with us.

Consilium Asset Management is regulated by the Financial Conduct Authority FCA.