How To Manage Money Wise

Transcription

1 Financial Services for Personal Injury and Clinical Negligence Awards

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3 IT S THE RELATIONSHIPS WE FORGE THE KNOWLEDGE WE HAVE AND THE PRINCIPLES WE APPLY

4 ABOUT US Established in 1997 Money Wise Independent Financial Advisers Ltd is a fee based independent financial advice business. We specialise in providing financial and investment advice to solicitors, deputies, trustees, personal injury and claim handlers dealing with individuals in receipt of personal injury and clinical negligence settlements. We are a firm that prides itself on the way we communicate with professional advisers and their clients. We recognise all clients are individuals and treat them as such. Money Wise is a preferred financial adviser for a number of legal and accountancy firms across the South of England. As fee based independent financial advisers we provide advice, we have no products of our own to sell. We provide a service that is clear and uncomplicated. 2

5 WHY MONEY WISE Trusted Relationships - we specialise in working with solicitors, deputies, accountants and trustees, and know that by working together we can achieve far more for your clients. Experienced Advisers - our advisers provide a valuable source of knowledge when dealing with personal injury and clinical negligence settlements. Importantly we care about identifying and providing the right solution. Knowing Your Clients - we take time to listen to you and your clients. We ask lots of questions because we know that only by fully understanding your clients circumstances can we provide the most appropriate advice to meet their needs. Our Approach - advising individuals with disabilities and or injuries requires a specific skill set. Our advisers are experienced in helping these individuals and their families understand how to manage their finances now, and for the longer term. Where possible we prefer to meet your clients face to face and involve them, and their family, in the planning process. Service - we pride ourselves on our professional and personal approach. We understand it is personal service and tailored advice you and your clients need to achieve the best outcomes. We seek to build long lasting relationships with your clients, adapting their financial plans to their changing needs and circumstances over the years. Clarity of Fees - we make sure that our charges are easily seen, clear, and understood so your clients know what they are paying for and why. It s the relationships we forge, the knowledge we have and the principles we apply. 3

6 HOW WE ADVISE Our aim is to support you by achieving the best outcome for your clients. Our primary role is to provide you and your clients with the solutions to ensure that their settlement will be able to provide for their care needs and other costs throughout their lifetime. Working alongside solicitors in their role as deputy or trustee, we can advise clients both pre- and postsettlement in cases of a personal injury, a clinical negligence claim or similar. Our Process Includes: Pre-Settlement - advice on the most appropriate settlement structure to meet your clients needs, i.e. lump sum and or periodical payments. Understanding Your Clients - full consideration of your clients physical and financial situation, their current and future needs. Income, Expenditure and Capital Analysis - determining how far their settlement will be able to meet their needs, both now and in the future. Entitlements - protecting your clients entitlement to benefits through the appropriate use of trusts. Risk - helping your clients to determine the most appropriate investment strategies for their needs, attitude to investment risk and how any losses might impact their objectives. Investment Approach - working with investment managers to construct one or more portfolios for your clients to ensure their settlement will provide for them throughout their lifetime. Initial Enquiry Response to Initial Enquiry Initial Meeting & Fact Finding Report & Recommendation Implementation of Recommendations Ongoing Financial Reviews 4

7 Flexibility - creating portfolios that are flexible enough to adapt to your clients changing needs and circumstances. Taxation - using a range of tax efficient vehicles and or product wrappers to minimise your clients liability to income tax and or capital gains tax. Audit Trail - providing you with written documentation and reporting that helps you to meet your requirements under the Court of Protection, or in your role as a trustee. Ongoing Service - working with you and your clients on a long-term basis to build and regularly review their financial plan, portfolios and investment strategies. Cash Flow Forecasting Through the consultation process we use the information gathered from you and your clients to create a financial forecast or model of their future situation. This allows us to: Analyse the factors that will ensure clients settlements will last throughout their lifetime. Understand how much investment risk they need and can afford to take to achieve their lifetime income needs and or capital requirements. Understand how your clients needs can be met for as long as possible and that any issues or shortfalls can, as far as possible, be identified in advance and prepared for. Model the effects of a future change in circumstances. For example, a deterioration in their health that would result in an increase in care needs, the inability of family members to continue with care provision, or a significant capital cost. Create a financial plan that is visually easy to explain and understand. Most importantly, using lifetime cash flow modelling to create a long term financial plan that gives you and your clients as much peace of mind as possible by creating a picture of their future finances. 5

8 HOW WE ADVISE Ongoing Advice Once the financial plan is agreed and implemented and the appropriate portfolio has been created, it is vital that this is reviewed and adapted at regular intervals. Therefore, our ongoing advice service includes: Maintaining and updating your clients financial models and meeting their changing needs. Meetings with you and, where appropriate, your clients, their families, trustees or other advisers. We will do this at least annually and provide you with six monthly updates on the portfolio s progress, including a detailed valuation and transaction history. Ensuring the ongoing suitability of your clients financial arrangements, including the investments and investment manager or managers. Keeping your clients financial arrangements and portfolio under regular review means we should be able to identify issues in advance and respond to your clients changing requirements. Therefore, working with you we aim to use their settlement to provide them with the greatest potential to provide for their needs throughout their lifetime. Because we work on a fee basis you can be confident we re recommending something because it s best for your clients, not for us. 6

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10 INVESTMENT MANAGEMENT Money Wise works with a number of discretionary investment managers and our scale means that we have been able to negotiate a reduction in their normal fees. This means your clients will benefit from their services for less than they would pay had these firms been instructed directly. If you or your client prefer to be more involved in making the investment decisions or do not want to appoint a discretionary investment manager we can provide you with advisory investment management for the same cost. The fees for investment management are separate and in addition to fees for financial advice and do not include portfolio costs (refer to the schedule of fees on page 10). Discretionary Management This is the most commonly selected service and is where you or your clients are happy to leave the investment decisions to the discretion of the investment manager. Once the portfolio is established, there will be no requirement to sign further authorities as the investment manager will buy and sell holdings within the portfolio in line with agreed investment objectives. This will involve the use of a specialist third party investment manager. We will discuss the appropriate investment risk, the client s investment experience and financial objectives. We will then agree the most appropriate investment management service with you and your client. The investment management service will be subject to a separate agreement. One of the main benefits of allowing Money Wise to identify and appoint the discretionary manager is the dual and co-ordinated approach we can adopt and the ongoing advice that can be provided. Reporting Active day-to-day management Suitability/Performance review by your Adviser Devise/Implement an appropriate investment strategy Defining your circumstances, objectives and risk profile Set/Update investment mandate Advisory Management Money Wise will advise you or your client on which investments to buy and sell within an agreed asset allocation. We will confirm our recommendations in writing and will ask for written confirmation to proceed when changes are required. This may involve the use of actively managed collective investment funds, passive investment funds or a mix of both. We do not advise on individual equities or bonds. 8

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12 SCHEDULE OF FEES Initial Fees Pre-Settlement - if a periodical payments viability report is required a fee will be charged. This fee will depend on the time taken and the complexity of the report required. As a guide this is likely to be between 1,500 and 3,000. Post-Settlement - There are no initial fees. Annual Fees The following tables include the special terms we have negotiated with a number of investment managers and demonstrate our target total charge for portfolios above and below 1,000,000. Total Expenses An investment portfolio will have other costs, e.g. the cost of the underlying holdings, dealing and custody fees. The total cost of these when added to the fees for financial advice and investment management is known as the Total Expense Ratio ( TER ). Please note: The actual TER will be provided on a client by client basis prior to their investments being made as the portfolio costs will vary depending on the blend of the underlying holdings. All fees quoted are exclusive of VAT. VAT will be charged where applicable. Investing more than 1M Investing less than 1M Cost of Financial Advice 0.50% Cost of Financial Advice* 0.65% Cost of Investment Management 0.50% Cost of Investment Management 0.65% Portfolio Costs (estimated) 0.50% Portfolio Costs (estimated) 0.50% TOTAL EXPENSES 1.50% TOTAL EXPENSES 1.80% * The financial advice fee is subject to a minimum of 2,000 per annum. We will consider other managers and approaches with you and your clients if appropriate. If we instruct an investment manager who has not agreed to the terms quoted above, the investment management fee may be higher. 10

13 Existing Arrangements If Money Wise is appointed to take over an existing arrangement for your clients, we may become entitled to receive an ongoing remuneration. Where ever possible we will replace this remuneration with an arrangement that reflects our fees on page 10. Advice Fees for Other Services For financial advice in respect of other services including savings, pensions, insurances, annuities and or financial planning, we will agree a specific fee or a time-costed fee with you or your clients in writing, and before the work commences. Fees will be payable when the work agreed has been completed, whether or not you or your client decides to implement our recommendations. Hourly Fees Chartered or Certified Financial Planner 220 per hour Financial Adviser (min. level 4 qualified) 180 per hour Paraplanner 100 per hour Administrator 75 per hour Our hourly fees may be subject to increase in the future at the rate in which national average earnings increase. All fees quoted are exclusive of VAT. VAT will be charged where applicable. 11

14 12 IT S THE RELATIONSHIPS WE FORGE THE KNOWLEDGE WE HAVE AND THE PRINCIPLES WE APPLY

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16 7 Chapel Row, Queen Square Bath BA1 1HN T: F: b Clifton Court Cambridge CB1 7BN T: F: Midland House, 2 Poole Road Bournemouth BH2 5QY T: F: London Wall Buildings London EC2M 5PP T: F: Version: Money Wise is Authorised and Regulated by the Financial Conduct Authority - Firm Reference