Sanity Check
If ever you needed a second opinion on pension, ISA and other investments, before you retire is probably the most important time.
Whilst assets are growing during your working career, ups and downs in value don’t harm your standard of living and errors will soon get ‘filled in’ as markets move on.
When you rely on that money to pay your monthly bills, everything changes—we help make sure you are on the right track.
Income Planner
Income planning is making sure you have the right amount of money at the right time, with the least amount of tax to be paid on top of what your investments earn and the most reliability of that income.
Fee Analyser
The amount of income you will receive into your bank account to pay for your standard of living is determined by: £ sum x % yield less charges less tax. All 4 of those criteria need to be optimal.
It’s not about the cheapest, it’s about the best value. In the ten years from 1/1/2010 the FTSE 100 Index, with zero fees, returned a total of 104% return.
Over the same period Temple Bar investment trust returned 184%, even though it had an ongoing fee of 0.5%.
For an investor, return is made from many things, fees are only one. At retirement the income paid is what you can spend. The fees are mainly a red herring as they do not determine income.
Investment Check Up
We specialise in long-term income as we assume our clients want a long-term retirement. Given that you will have grown up in the era of carburettors, the AA hand book, cross ply tyres and ‘A’ roads, if you (or your kids) are setting out on a long trip in your car you’ll check the fuel, you’ll wonder if oil is still checked these days, you’ll ensure you’re carrying a phone. You wouldn’t do that when you pop down to the shops, the car is reckoned to be fine for small distances.
Looking at retirement, view it as though you are standing on the slip road entry to the retirement motorway—to ensure you don’t end up on the income hard shoulder you need to double check, and probably have your portfolio ‘serviced’ before you start the journey.
Like with cars, hopefully the breakdown will never occur.
Income vs Capital at Risk
Equity income is not correlated to the underlying capital value; in the last 30 years the FTSE 100 has produced negative capital returns 30% of the time, whilst it has never failed to pay an income.
Much of our research has been focused on this area and the funds analysed back to 1986 showed that no income fund that we use has ever failed to make an annual payment, ever.
