A day in the life of a financial planner
As my role as financial planner within Xentum I thought it would be interesting to give you a brief insight into some of my current projects:
Researching existing investments
One of the first jobs we do for new clients is to analyse their existing investments (or pensions). It has not been unknown to spend a day simply trawling through what we call ‘a box of tricks’, in other words, a box full of financial paperwork. Now this may seem an unenviable task to most, but I actually quite enjoy it. The investments that have been collected over the years often tell a story of their own.
I am currently working on a ‘box of tricks’ for a married couple who hold a number of investment bonds and unit trusts with various investment companies. In the past week I have been contacting these companies (a laborious but necessary part of my job). Once I have all the required information I will start to research these investments and then provide the clients with a concise analysis of their overall portfolio. This document provides a good starting point for any advice we give and is the first step to taking on any new client with existing investments.
Arranging life cover
One client currently has a significant IHT (inheritance tax) liability and along with their solicitor, we have been instructed to look at potential options to cover this liability. One of the simplest and most cost efficient ways of doing this is through life protection. I am therefore currently researching the different types of life cover available and the best premiums on the market for these options. Once I have collated all this research, we will then sit down with the client and advise on the most sensible option going forward.
Finding a solution for a client’s windfall
One of our longstanding clients recently received a windfall. The shares that had been passed on by the client’s deceased husband had suddenly become worth a considerable amount. This is because the company with which she held a large number of shares became subject to a management buy out (MBO). David, our head of technical is currently working on the tax implications of this windfall. Once we have these, we will then sit down as a team and talk about suitable strategies for the client before agreeing a course of action. The solution that we decide on in this case will need to balance a number of factors including; income, security, tax implications (particularly IHT) and capital growth. For a complex issue such as this it’s important we work in collaboration with the client’s solicitor and accountant to create the best outcome.
Xentum website
Finally, I’m in the process of overseeing changes to the website making it more interactive and educational for everybody. So please keep an eye out over the next couple of weeks for any changes and feel free to make any comments or suggestions as to how we can improve the website for you.
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