SlideShare une entreprise Scribd logo
1  sur  12
Télécharger pour lire hors ligne
Simply investing
Sterling Financial Planning Limited
SterlingFinancial Planning
2
Important
information
The content of this brochure is for information only and must not be considered as financial advice.
Wealwaysrecommendthatyougetindependentfinancialadvicebeforemakinganyfinancialdecisions.
The value of investments and the income from them can fall as well as rise, so you may not get back
what you invest.
The Financial Conduct Authority does not regulate tax advice.
3
Importance of financial planning
As we go through life we experience many significant
milestones, from starting a job to buying a first home.
Our finances play an important role in the key stages of our lives and can help us to
achieve some of our goals.
So, it makes sense to have a financial plan. For some people, money is a topic they do
not understand well and so the easy option is to do nothing and hope for the best.
The better approach is to take control of your future and make financial planning a
central part of your life.
As financial planners we will ask you to share a vision of what you want to achieve
and we will assess what matters most to you.We will then, skilfully and sensitively,
use these personal and emotional ambitions to create a clear financial plan.
This will help you to visualise your progress towards your long-term goals and
also understand the effect unexpected circumstances could have on your finances.
In short, it gives you peace of mind that you are building the personal and financial
future you deserve and want.
Finances play an
important role in
the key stages of
our lives and can
help us to achieve
some of our goals.
Simply investing
First home Marriage First child
Value of advice
Our personal financial planning and investment
advice service is founded on understanding your
specific needs and circumstances.This allows us to
provide recommendations suitable for you and your
financial future.
Equally, under regulations from the Financial Conduct Authority (FCA), we can only
suggest investments that are in line with your views on investment risk, which we look
at in more detail later in this document.
The experience is a straightforward one that starts with talking about your goals, needs
and circumstances before going on to discuss how your investment will be affected by
the amount of risk you take.We can use various techniques to help work out what feels
right for you.This is followed up by a presentation of recommendations including a
demonstration of how these are suitable for your circumstances and needs.
Our service is not limited to initial transactions. Perhaps more importantly it could
support you through a lifetime of change, providing reassurance that, whatever
happens, you will receive the guidance and help you need to stay on track with
your investments.
Our advice can be invaluable if you do not have a lot of investment experience or you
don’t have time to fully research the options.
Personal
recommendation
Getting to know you
Saving or investment?
A key feature of any financial plan will be a strategy
to manage cash over and beyond what is needed for
short-term saving.
Two common ways of doing this are saving and investing, but these are still not fully
understood by everyone. Being clear on how saving and investing are different and
also being aware of the basics of investing, makes it much easier to make informed
decisions.
Saving is a good habit to get into. It generally involves putting money into a bank or
building society account that is largely risk-free and pays a known, although typically
low, rate of interest.These types of account can be great for shorter-term plans and
for money that you might need to get hold of in a hurry. However, once you take into
account inflation (the rise in the cost of goods and services), it is possible that the
purchasing power of your money (what you can buy with your savings) will reduce.
That is where investing comes in. Investing for the long term can help you to both
save and increase the value of your money.
When considering whether to save or invest your money, it is important to think
about the following.
Time Risk How easy it is to
access your money
Saving Short term
– less than five years
Typically low as cash-based
(for example, money in a
savings account)
Typically straightforward
as cash-based
(for example, money in
a savings accounts)
Investing Medium to long term
– at least five years
Often linked to the stock market
so values can rise and fall
You can access your
money but it is better to
leave it invested for at
least five years
Simply investing
Saving for a rainy day
Investing wisely
Basic principles of investment
Although investment is a complicated subject,
there are some straightforward principles which are
explained below.
Personal goals and aims
Your approach to investment will vary depending on what you are looking to
achieve.You may want to focus on building up your wealth, so there is a need for
growth in your investment plan.
Or, you may want your investment to produce a regular income to support your
personal spending.
Risk
In its most basic terms, this can be expressed as the probability that your investment
could be worth less than you initially invested, at the time you choose to cash it in.
Cash-based savings cannot fall in value, but how much you can buy with the money
can be reduced if prices rise due to inflation. Products and funds that invest in stocks
and shares cannot usually guarantee investment performance and so the value can
rise and fall.
You can choose varying levels of risk depending on your preferences and timescales.
We are experienced in helping you make this judgement.
The greater the risk, the greater the potential for reward, and vice versa.
Your approach to
investment will
vary depending
on what you are
looking to achieve.
Focusing on your goals
Balancing risk
RISK
Cash
	Cash savings are commonly held in deposit
accounts with banks and building societies.
They are often used in a portfolio containing
a wide range of investments to pay for
advice and other costs, without the need to
sell investment funds.
Bonds
Government and company loans
	are an option for investors. Returns typically
come in the form of interest payments while
the risk depends on the likelihood of the
borrower repaying the debt.
Property
	Homeowners are familiar with using their
money to buy their homes, but in the
investment context it is much more likely
to be in commercial property. Investment
growth can come from the rise in property
values and rent, but of course neither is
guaranteed. A further risk is that in certain
circumstances it may not be possible to sell
property fund holdings at the time you need
the money.
Equities
These are better known as stocks or
shares and represent an investment in a
company for ownership rights. If the price
of a share rises, so does the value of your
investment, but if share prices fall the
value of the investment will also fall.
The financial performance of the company
will affect prices, and so will other factors
such as market and economic conditions.
As a result, equities carry more risk than
cash, bonds and property.
Alternatives
This category of investments can include
specialist funds that aim for higher returns
through investments which involve a high
risk of loss, known as hedge funds, but also
covers investment in specific raw materials
or commodities such as gold and oil.
Private investors commonly access the
assets above through collective schemes,
or to use their more straightforward name
‘funds’. Managers of these funds use investors’
money to buy specific assets and then let
individuals buy a share or‘unit’of the fund
so they can take part in the performance of
all the underlying assets. Funds can focus on
one type of asset or several.
Proven investment theory is that in order to
deliver long-term investment returns while
reducing risk, you need to build a portfolio
(a collection of investment funds) which
includes holdings in a number of different
assets.This is known as‘diversification’.
The number of asset types, and how
investments are split between them, will vary
from investor to investor and will depend on
things such as their views on investment risk
and personal aims.
Diversification (spreading the risk)
There are a number of different types of investment assets with varying characteristics.These perform
differently depending on the economic climate and timescales, both in the UK and worldwide.
Simply investing
As experienced
advisers, we are
in the perfect
position to explore
this with you
in more detail,
including what
any costs are
likely to be, and
opportunities to
blend both styles.
Style
You have two choices when it comes to investing.
•	 Active management.This is where you put your faith in professional fund
managers, who make decisions on the best companies to invest in, based on
many factors including thorough research.
•	 Passive management.This is where you choose investment instruments which
simply mirror the performance of a group of shares, regardless of whether they
go up or down.
As experienced advisers, we are in the perfect position to explore this with you in
more detail, including what any costs are likely to be, and opportunities to blend
both styles.
Accessing your money
We have already mentioned the different types of assets.When the time comes
to withdraw all or some of your money, you will want the process to be completed
with the minimum of delay and cost. In the majority of cases, this is easier with
cash-based deposit accounts. But when investing, in certain circumstances, this is not
always possible (for example if your portfolio was heavily invested in assets which
cannot easily be converted to cash). A good example of this might be a property
fund during a time when the commercial property market is unstable.
Costs
Fund-management groups’charges vary and the cost of investment-management
services will differ depending on the nature of the service provided (there are more
details later). Cost is an important consideration as it will have a direct effect on the
level of return you receive from your investment.
Tax
Lastly the tax treatment of returns arising from investment, income and growth
also varies. Reducing tax will be a key consideration when it comes to designing an
investment portfolio to make sure the maximum return is made available to you.
As your adviser, we will consider the most suitable tax strategies for your circumstances.
Costs can vary Tax can reduce returns
How do advice firms
manage investments?
Common practice is to offer one or more investment
portfolios, which are designed to help you achieve
your long-term aims.
The first skill in doing this is to create a blend of assets that balances the need
for return with your willingness to accept risk.Whatever your situation, it should
always be possible to create a suitable portfolio unless it is clear that you are not
comfortable with any potential loss of your investment or reduction in income.
The next important step is to select fund managers and funds to include within
the portfolio and to make sure the total cost represents fair value.There are two
approaches to delivering this service.
Advisory
In this approach, for the initial investment (and all following transactions) we
must provide evidence that proposed investments meet your needs, and then get
your permission before we can go ahead with any recommendations.
Discretionary
This involves investment managers, sometimes working in partnership with financial
advisers, designing suitable investment portfolios.You need to approve the initial
investment but, after that, the investment manager is free to buy and sell funds
based on their professional judgement, without needing your permission.
The benefits of this approach include less paperwork for investors and access to
expert investment managers, with the resources to carry out in-depth assessments
of suitable funds for your portfolio. Plus, the ongoing monitoring and maintenance
makes sure that your investments stay closely linked to the level of risk you have told
us you are willing to accept.Together, the adviser and investment manager will take
care of everything and keep you regularly informed.
Each service
has advantages
and potential
disadvantages
and, as your
adviser, we can
explain this in
more detail.
Simply investing
Diversified portfolio
Administering your portfolio
Since the late 2000s, financial advisers have
been increasing their use of ‘platform’services
to administer investment portfolios on behalf
of their clients.
Essentially platforms are providers of two main services − technology and
investment administration.
One of the main benefits is that investors can view, and advisers can manage,
portfolios in one place. Online access means information is available 24 hours a day.
Typically investment assets are combined into an organisation known as a nominee
company and are reconciled each day (to match investment holdings to each
individual investor).The nominee company is independent of the platform business,
so investments are protected if the platform business fails.
In the unlikely event that a platform (or a UK authorised investment firm which
you have invested in through a platform) goes bust, you would be entitled to
compensation through the Financial Services Compensation Scheme (FSCS). The
amount of compensation is up to set limits and depends on the type of business
being carried out. Please contact us if you would like full details of this.
Platforms also provide or give access to a series of investment accounts or wrappers,
in which portfolios can be held, such as self-invested personal pensions and
individual savings accounts, both of which provide favourable tax treatment.
The platforms also make the ongoing business of managing investment portfolios
easier for investors and their advisers. Straightforward administration and regular
reports are helpful features, and regulation from the Financial Conduct Authority
monitors advisers to make sure they are meeting professional standards.
Essentially
platforms are
providers of two
main services
− technology
and investment
administration.
An integrated solution
Simply investing
Getintouch
For more information please contact
Sterling Financial Planning Limited today
Head Office: Neville House,
42-46 Hagley Road, Edgbaston,
Birmingham, B16 8PE
Website: www.sterling-ifa.co.uk
Office: 0330 321 1405
Email: hello@sterling-ifa.co.uk
Sterling Financial Planning Limited is an
appointed representative of New Leaf
Distribution Limited, which is authorised and
regulated by the Financial Conduct Authority
and whose is FCA Number 460421.
Registered in England and Wales. Company no.
9848924.
SterlingFinancial Planning

Contenu connexe

Tendances

Biblical Faith Values Booklet
Biblical Faith Values BookletBiblical Faith Values Booklet
Biblical Faith Values Booklet
Jay Brooks
 
HIGHWATER CAPITAL FUND TEAR SHEET
HIGHWATER CAPITAL FUND TEAR SHEETHIGHWATER CAPITAL FUND TEAR SHEET
HIGHWATER CAPITAL FUND TEAR SHEET
trustgod999
 
Investment strategy role of professionals
Investment strategy   role of professionalsInvestment strategy   role of professionals
Investment strategy role of professionals
CA K Raghu
 
Hilltop decorrelated fund august 2013 factsheet
Hilltop decorrelated fund august 2013 factsheetHilltop decorrelated fund august 2013 factsheet
Hilltop decorrelated fund august 2013 factsheet
John Robertson
 
Investment Policy Statement PPT Northwest Planned Giving Roundtable Nov 13 20...
Investment Policy Statement PPT Northwest Planned Giving Roundtable Nov 13 20...Investment Policy Statement PPT Northwest Planned Giving Roundtable Nov 13 20...
Investment Policy Statement PPT Northwest Planned Giving Roundtable Nov 13 20...
clmagana
 

Tendances (20)

Biblical Faith Values Booklet
Biblical Faith Values BookletBiblical Faith Values Booklet
Biblical Faith Values Booklet
 
Investment Strategies To Grow Your Income
Investment Strategies To Grow Your IncomeInvestment Strategies To Grow Your Income
Investment Strategies To Grow Your Income
 
Personal money mgmt saving and investing
Personal money mgmt saving and investingPersonal money mgmt saving and investing
Personal money mgmt saving and investing
 
HIGHWATER CAPITAL FUND TEAR SHEET
HIGHWATER CAPITAL FUND TEAR SHEETHIGHWATER CAPITAL FUND TEAR SHEET
HIGHWATER CAPITAL FUND TEAR SHEET
 
Dedicated to-your-lifelong-success
Dedicated to-your-lifelong-successDedicated to-your-lifelong-success
Dedicated to-your-lifelong-success
 
Investment basics wayne lippman
Investment basics wayne lippmanInvestment basics wayne lippman
Investment basics wayne lippman
 
Financial Lessons from TFL
Financial Lessons from TFLFinancial Lessons from TFL
Financial Lessons from TFL
 
Basic strategy
Basic strategyBasic strategy
Basic strategy
 
Nse finproducts
Nse finproductsNse finproducts
Nse finproducts
 
Before Investing
Before InvestingBefore Investing
Before Investing
 
Investment strategy role of professionals
Investment strategy   role of professionalsInvestment strategy   role of professionals
Investment strategy role of professionals
 
Hilltop decorrelated fund august 2013 factsheet
Hilltop decorrelated fund august 2013 factsheetHilltop decorrelated fund august 2013 factsheet
Hilltop decorrelated fund august 2013 factsheet
 
THE WARREN BUFFET WAY- Investment Strategies of the World’s Greatest Investor
THE WARREN BUFFET WAY- Investment Strategies of the World’s Greatest InvestorTHE WARREN BUFFET WAY- Investment Strategies of the World’s Greatest Investor
THE WARREN BUFFET WAY- Investment Strategies of the World’s Greatest Investor
 
Brochure 1
Brochure 1Brochure 1
Brochure 1
 
Investment avenues
Investment avenuesInvestment avenues
Investment avenues
 
Investing for the 21st Century
Investing for the 21st CenturyInvesting for the 21st Century
Investing for the 21st Century
 
Lessons from the intelligent investor
Lessons from the intelligent investorLessons from the intelligent investor
Lessons from the intelligent investor
 
Money Skills for Newlywed Couples
Money Skills for Newlywed CouplesMoney Skills for Newlywed Couples
Money Skills for Newlywed Couples
 
Investment Policy Statement PPT Northwest Planned Giving Roundtable Nov 13 20...
Investment Policy Statement PPT Northwest Planned Giving Roundtable Nov 13 20...Investment Policy Statement PPT Northwest Planned Giving Roundtable Nov 13 20...
Investment Policy Statement PPT Northwest Planned Giving Roundtable Nov 13 20...
 
Understanding savings and investment
Understanding savings and investmentUnderstanding savings and investment
Understanding savings and investment
 

Similaire à The importance of Financial Planning

Fundamentals of Investing[1]
Fundamentals of Investing[1]Fundamentals of Investing[1]
Fundamentals of Investing[1]
Chris Weetman
 
Investment diversification b 2013/14
Investment diversification b  2013/14Investment diversification b  2013/14
Investment diversification b 2013/14
Oliver Taylor
 
Financial independence b 2013/14
Financial independence b  2013/14Financial independence b  2013/14
Financial independence b 2013/14
Oliver Taylor
 
10 reasons to see an adviser
10 reasons to see an adviser10 reasons to see an adviser
10 reasons to see an adviser
coussey
 
Financial independence a 2013/14
Financial independence a  2013/14Financial independence a  2013/14
Financial independence a 2013/14
Oliver Taylor
 
Life mgt workshop (investment)
Life mgt workshop (investment)Life mgt workshop (investment)
Life mgt workshop (investment)
jazriky
 
Guide to Wealth Management
Guide to Wealth ManagementGuide to Wealth Management
Guide to Wealth Management
Paul Murray
 

Similaire à The importance of Financial Planning (20)

Fundamentals of Investing[1]
Fundamentals of Investing[1]Fundamentals of Investing[1]
Fundamentals of Investing[1]
 
Investing rules you should never break
Investing rules you should never breakInvesting rules you should never break
Investing rules you should never break
 
Slides for 7 Steps to Help You Multiply Your Net Worth Over The Next 2 Years....
Slides for 7 Steps to Help You Multiply Your Net Worth Over The Next 2 Years....Slides for 7 Steps to Help You Multiply Your Net Worth Over The Next 2 Years....
Slides for 7 Steps to Help You Multiply Your Net Worth Over The Next 2 Years....
 
A. investing in your future
A. investing in your futureA. investing in your future
A. investing in your future
 
Nature of Investment and Investment Analysis
Nature of Investment and Investment AnalysisNature of Investment and Investment Analysis
Nature of Investment and Investment Analysis
 
Investment diversification b 2013/14
Investment diversification b  2013/14Investment diversification b  2013/14
Investment diversification b 2013/14
 
Financial independence b 2013/14
Financial independence b  2013/14Financial independence b  2013/14
Financial independence b 2013/14
 
Wealth Creation
Wealth CreationWealth Creation
Wealth Creation
 
10 reasons to see an adviser
10 reasons to see an adviser10 reasons to see an adviser
10 reasons to see an adviser
 
Financial independence a 2013/14
Financial independence a  2013/14Financial independence a  2013/14
Financial independence a 2013/14
 
Investment Basics and Mastering the Art of Side Hustles
Investment Basics and Mastering the Art of Side HustlesInvestment Basics and Mastering the Art of Side Hustles
Investment Basics and Mastering the Art of Side Hustles
 
Life mgt workshop (investment)
Life mgt workshop (investment)Life mgt workshop (investment)
Life mgt workshop (investment)
 
MINDFUL INVESTING
MINDFUL INVESTINGMINDFUL INVESTING
MINDFUL INVESTING
 
Diaz Invest's News Letter - September 2015
Diaz Invest's News Letter - September 2015Diaz Invest's News Letter - September 2015
Diaz Invest's News Letter - September 2015
 
Greg Royce GLG Man
Greg Royce GLG ManGreg Royce GLG Man
Greg Royce GLG Man
 
Greg Royce
Greg RoyceGreg Royce
Greg Royce
 
Guide to Wealth Management
Guide to Wealth ManagementGuide to Wealth Management
Guide to Wealth Management
 
jaya.docx
jaya.docxjaya.docx
jaya.docx
 
Session 2 Preparation Print
Session 2   Preparation PrintSession 2   Preparation Print
Session 2 Preparation Print
 
Investing Basics
Investing BasicsInvesting Basics
Investing Basics
 

Dernier

obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
yulianti213969
 
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
Boundify
 
Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
DUBAI (+971)581248768 BUY ABORTION PILLS IN ABU dhabi...Qatar
 
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
vineshkumarsajnani12
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
LR1709MUSIC
 
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di PasuruanObat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Jakarta Wa 085176963835 Apotek Jual Obat Cytotec Di Jakarta
 

Dernier (20)

Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptxGoal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
Goal Presentation_NEW EMPLOYEE_NETAPS FOUNDATION.pptx
 
Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024Home Furnishings Ecommerce Platform Short Pitch 2024
Home Furnishings Ecommerce Platform Short Pitch 2024
 
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
obat aborsi bandung wa 081336238223 jual obat aborsi cytotec asli di bandung9...
 
WAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdfWAM Corporate Presentation May 2024_w.pdf
WAM Corporate Presentation May 2024_w.pdf
 
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdfProgress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
Progress Report - UKG Analyst Summit 2024 - A lot to do - Good Progress1-1.pdf
 
How Bookkeeping helps you in Cost Saving, Tax Saving and Smooth Business Runn...
How Bookkeeping helps you in Cost Saving, Tax Saving and Smooth Business Runn...How Bookkeeping helps you in Cost Saving, Tax Saving and Smooth Business Runn...
How Bookkeeping helps you in Cost Saving, Tax Saving and Smooth Business Runn...
 
Beyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic AccountingBeyond Numbers A Holistic Approach to Forensic Accounting
Beyond Numbers A Holistic Approach to Forensic Accounting
 
Lundin Gold - Q1 2024 Conference Call Presentation (Revised)
Lundin Gold - Q1 2024 Conference Call Presentation (Revised)Lundin Gold - Q1 2024 Conference Call Presentation (Revised)
Lundin Gold - Q1 2024 Conference Call Presentation (Revised)
 
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx2024 May - Clearbit Integration with Hubspot  - Greenville HUG.pptx
2024 May - Clearbit Integration with Hubspot - Greenville HUG.pptx
 
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Bur...
 
Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...Contact +971581248768 for 100% original and safe abortion pills available for...
Contact +971581248768 for 100% original and safe abortion pills available for...
 
JAJPUR CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JAJPUR ESCORTS SERVICE PROVIDE
JAJPUR CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JAJPUR  ESCORTS SERVICE PROVIDEJAJPUR CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JAJPUR  ESCORTS SERVICE PROVIDE
JAJPUR CALL GIRL ❤ 8272964427❤ CALL GIRLS IN JAJPUR ESCORTS SERVICE PROVIDE
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
 
The Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and UncertaintyThe Art of Decision-Making: Navigating Complexity and Uncertainty
The Art of Decision-Making: Navigating Complexity and Uncertainty
 
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in PakistanChallenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
 
Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312Shots fired Budget Presentation.pdf12312
Shots fired Budget Presentation.pdf12312
 
Thompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptx
Thompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptxThompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptx
Thompson_Taylor_MBBS_PB1_2024-03 (1)- Project & Portfolio 2.pptx
 
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di PasuruanObat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
Obat Aborsi Pasuruan 0851\7696\3835 Jual Obat Cytotec Di Pasuruan
 
UJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDE
UJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDEUJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDE
UJJAIN CALL GIRL ❤ 8272964427❤ CALL GIRLS IN UJJAIN ESCORTS SERVICE PROVIDE
 
How does a bike-share company navigate speedy success? - Cyclistic
How does a bike-share company navigate speedy success? - CyclisticHow does a bike-share company navigate speedy success? - Cyclistic
How does a bike-share company navigate speedy success? - Cyclistic
 

The importance of Financial Planning

  • 1. Simply investing Sterling Financial Planning Limited SterlingFinancial Planning
  • 2. 2 Important information The content of this brochure is for information only and must not be considered as financial advice. Wealwaysrecommendthatyougetindependentfinancialadvicebeforemakinganyfinancialdecisions. The value of investments and the income from them can fall as well as rise, so you may not get back what you invest. The Financial Conduct Authority does not regulate tax advice.
  • 3. 3 Importance of financial planning As we go through life we experience many significant milestones, from starting a job to buying a first home. Our finances play an important role in the key stages of our lives and can help us to achieve some of our goals. So, it makes sense to have a financial plan. For some people, money is a topic they do not understand well and so the easy option is to do nothing and hope for the best. The better approach is to take control of your future and make financial planning a central part of your life. As financial planners we will ask you to share a vision of what you want to achieve and we will assess what matters most to you.We will then, skilfully and sensitively, use these personal and emotional ambitions to create a clear financial plan. This will help you to visualise your progress towards your long-term goals and also understand the effect unexpected circumstances could have on your finances. In short, it gives you peace of mind that you are building the personal and financial future you deserve and want. Finances play an important role in the key stages of our lives and can help us to achieve some of our goals. Simply investing First home Marriage First child
  • 4. Value of advice Our personal financial planning and investment advice service is founded on understanding your specific needs and circumstances.This allows us to provide recommendations suitable for you and your financial future. Equally, under regulations from the Financial Conduct Authority (FCA), we can only suggest investments that are in line with your views on investment risk, which we look at in more detail later in this document. The experience is a straightforward one that starts with talking about your goals, needs and circumstances before going on to discuss how your investment will be affected by the amount of risk you take.We can use various techniques to help work out what feels right for you.This is followed up by a presentation of recommendations including a demonstration of how these are suitable for your circumstances and needs. Our service is not limited to initial transactions. Perhaps more importantly it could support you through a lifetime of change, providing reassurance that, whatever happens, you will receive the guidance and help you need to stay on track with your investments. Our advice can be invaluable if you do not have a lot of investment experience or you don’t have time to fully research the options. Personal recommendation Getting to know you
  • 5. Saving or investment? A key feature of any financial plan will be a strategy to manage cash over and beyond what is needed for short-term saving. Two common ways of doing this are saving and investing, but these are still not fully understood by everyone. Being clear on how saving and investing are different and also being aware of the basics of investing, makes it much easier to make informed decisions. Saving is a good habit to get into. It generally involves putting money into a bank or building society account that is largely risk-free and pays a known, although typically low, rate of interest.These types of account can be great for shorter-term plans and for money that you might need to get hold of in a hurry. However, once you take into account inflation (the rise in the cost of goods and services), it is possible that the purchasing power of your money (what you can buy with your savings) will reduce. That is where investing comes in. Investing for the long term can help you to both save and increase the value of your money. When considering whether to save or invest your money, it is important to think about the following. Time Risk How easy it is to access your money Saving Short term – less than five years Typically low as cash-based (for example, money in a savings account) Typically straightforward as cash-based (for example, money in a savings accounts) Investing Medium to long term – at least five years Often linked to the stock market so values can rise and fall You can access your money but it is better to leave it invested for at least five years Simply investing Saving for a rainy day Investing wisely
  • 6. Basic principles of investment Although investment is a complicated subject, there are some straightforward principles which are explained below. Personal goals and aims Your approach to investment will vary depending on what you are looking to achieve.You may want to focus on building up your wealth, so there is a need for growth in your investment plan. Or, you may want your investment to produce a regular income to support your personal spending. Risk In its most basic terms, this can be expressed as the probability that your investment could be worth less than you initially invested, at the time you choose to cash it in. Cash-based savings cannot fall in value, but how much you can buy with the money can be reduced if prices rise due to inflation. Products and funds that invest in stocks and shares cannot usually guarantee investment performance and so the value can rise and fall. You can choose varying levels of risk depending on your preferences and timescales. We are experienced in helping you make this judgement. The greater the risk, the greater the potential for reward, and vice versa. Your approach to investment will vary depending on what you are looking to achieve. Focusing on your goals Balancing risk RISK
  • 7. Cash Cash savings are commonly held in deposit accounts with banks and building societies. They are often used in a portfolio containing a wide range of investments to pay for advice and other costs, without the need to sell investment funds. Bonds Government and company loans are an option for investors. Returns typically come in the form of interest payments while the risk depends on the likelihood of the borrower repaying the debt. Property Homeowners are familiar with using their money to buy their homes, but in the investment context it is much more likely to be in commercial property. Investment growth can come from the rise in property values and rent, but of course neither is guaranteed. A further risk is that in certain circumstances it may not be possible to sell property fund holdings at the time you need the money. Equities These are better known as stocks or shares and represent an investment in a company for ownership rights. If the price of a share rises, so does the value of your investment, but if share prices fall the value of the investment will also fall. The financial performance of the company will affect prices, and so will other factors such as market and economic conditions. As a result, equities carry more risk than cash, bonds and property. Alternatives This category of investments can include specialist funds that aim for higher returns through investments which involve a high risk of loss, known as hedge funds, but also covers investment in specific raw materials or commodities such as gold and oil. Private investors commonly access the assets above through collective schemes, or to use their more straightforward name ‘funds’. Managers of these funds use investors’ money to buy specific assets and then let individuals buy a share or‘unit’of the fund so they can take part in the performance of all the underlying assets. Funds can focus on one type of asset or several. Proven investment theory is that in order to deliver long-term investment returns while reducing risk, you need to build a portfolio (a collection of investment funds) which includes holdings in a number of different assets.This is known as‘diversification’. The number of asset types, and how investments are split between them, will vary from investor to investor and will depend on things such as their views on investment risk and personal aims. Diversification (spreading the risk) There are a number of different types of investment assets with varying characteristics.These perform differently depending on the economic climate and timescales, both in the UK and worldwide. Simply investing
  • 8. As experienced advisers, we are in the perfect position to explore this with you in more detail, including what any costs are likely to be, and opportunities to blend both styles. Style You have two choices when it comes to investing. • Active management.This is where you put your faith in professional fund managers, who make decisions on the best companies to invest in, based on many factors including thorough research. • Passive management.This is where you choose investment instruments which simply mirror the performance of a group of shares, regardless of whether they go up or down. As experienced advisers, we are in the perfect position to explore this with you in more detail, including what any costs are likely to be, and opportunities to blend both styles. Accessing your money We have already mentioned the different types of assets.When the time comes to withdraw all or some of your money, you will want the process to be completed with the minimum of delay and cost. In the majority of cases, this is easier with cash-based deposit accounts. But when investing, in certain circumstances, this is not always possible (for example if your portfolio was heavily invested in assets which cannot easily be converted to cash). A good example of this might be a property fund during a time when the commercial property market is unstable. Costs Fund-management groups’charges vary and the cost of investment-management services will differ depending on the nature of the service provided (there are more details later). Cost is an important consideration as it will have a direct effect on the level of return you receive from your investment. Tax Lastly the tax treatment of returns arising from investment, income and growth also varies. Reducing tax will be a key consideration when it comes to designing an investment portfolio to make sure the maximum return is made available to you. As your adviser, we will consider the most suitable tax strategies for your circumstances. Costs can vary Tax can reduce returns
  • 9. How do advice firms manage investments? Common practice is to offer one or more investment portfolios, which are designed to help you achieve your long-term aims. The first skill in doing this is to create a blend of assets that balances the need for return with your willingness to accept risk.Whatever your situation, it should always be possible to create a suitable portfolio unless it is clear that you are not comfortable with any potential loss of your investment or reduction in income. The next important step is to select fund managers and funds to include within the portfolio and to make sure the total cost represents fair value.There are two approaches to delivering this service. Advisory In this approach, for the initial investment (and all following transactions) we must provide evidence that proposed investments meet your needs, and then get your permission before we can go ahead with any recommendations. Discretionary This involves investment managers, sometimes working in partnership with financial advisers, designing suitable investment portfolios.You need to approve the initial investment but, after that, the investment manager is free to buy and sell funds based on their professional judgement, without needing your permission. The benefits of this approach include less paperwork for investors and access to expert investment managers, with the resources to carry out in-depth assessments of suitable funds for your portfolio. Plus, the ongoing monitoring and maintenance makes sure that your investments stay closely linked to the level of risk you have told us you are willing to accept.Together, the adviser and investment manager will take care of everything and keep you regularly informed. Each service has advantages and potential disadvantages and, as your adviser, we can explain this in more detail. Simply investing Diversified portfolio
  • 10. Administering your portfolio Since the late 2000s, financial advisers have been increasing their use of ‘platform’services to administer investment portfolios on behalf of their clients. Essentially platforms are providers of two main services − technology and investment administration. One of the main benefits is that investors can view, and advisers can manage, portfolios in one place. Online access means information is available 24 hours a day. Typically investment assets are combined into an organisation known as a nominee company and are reconciled each day (to match investment holdings to each individual investor).The nominee company is independent of the platform business, so investments are protected if the platform business fails. In the unlikely event that a platform (or a UK authorised investment firm which you have invested in through a platform) goes bust, you would be entitled to compensation through the Financial Services Compensation Scheme (FSCS). The amount of compensation is up to set limits and depends on the type of business being carried out. Please contact us if you would like full details of this. Platforms also provide or give access to a series of investment accounts or wrappers, in which portfolios can be held, such as self-invested personal pensions and individual savings accounts, both of which provide favourable tax treatment. The platforms also make the ongoing business of managing investment portfolios easier for investors and their advisers. Straightforward administration and regular reports are helpful features, and regulation from the Financial Conduct Authority monitors advisers to make sure they are meeting professional standards. Essentially platforms are providers of two main services − technology and investment administration. An integrated solution
  • 11. Simply investing Getintouch For more information please contact Sterling Financial Planning Limited today
  • 12. Head Office: Neville House, 42-46 Hagley Road, Edgbaston, Birmingham, B16 8PE Website: www.sterling-ifa.co.uk Office: 0330 321 1405 Email: hello@sterling-ifa.co.uk Sterling Financial Planning Limited is an appointed representative of New Leaf Distribution Limited, which is authorised and regulated by the Financial Conduct Authority and whose is FCA Number 460421. Registered in England and Wales. Company no. 9848924. SterlingFinancial Planning