Wealth Management Consultants in Tunbridge Wells

The principles of good investment management apply regardless of the sums involved and what you want to achieve.

Our Approach To Wealth Management

There are numerous savings and investment vehicles available to investors, some better known than others. Add to that the ever-changing, complex UK tax system with it’s various allowances and its no wonder that investors need advice to help them make the right decisions and keep their investments and financial plans on track.

Designing An Investment Portfolio

For us, building a suitable and efficient investment portfolio starts with gaining a thorough understanding of your financial circumstances, objectives, goals and tolerance to risk. We then take into account other important factors, such as taxation, to create a portfolio that has the right balance for growth, income or a combination of the two.

Asset Types And Collective Investments (‘Collectives’)

The asset types most commonly found in personal investment portfolios are cash, fixed interest securities (such as corporate bonds and gilts), shares (also known as equities) and commercial property.  Most collectives invest in one or more of these asset types.

We use collectives to achieve diversification using a blend of passive and actively managed funds. Collectives include Unit Trusts, Open Ended Investment Companies (OEICs) and Investment Trusts. When it comes to selecting the funds for your portfolio, our golden rule is: if we can’t understand how a manager is investing the assets in the fund, we will not recommend the fund to our clients.

Personal Preferences

Some clients might have certain ethical views and beliefs when it comes to making investments and sometimes these can be at odds with their risk tolerance and financial objectives. It’s our job as a wealth management company to find a way of balancing any conflicts to achieve a portfolio you’ll be happy with and one that will help you to achieve your financial goals.

Products And Wrappers

With careful planning, it’s usually possible to reduce the tax payable on a collective investment fund by holding it in a suitable ‘wrapper’. 

The two most common wrappers are Pensions and Individual Savings Accounts (ISAs) both of which allow the funds to accumulate without giving rise to any additional income tax or capital gains tax. In the case of Pensions, it's possible to reduce tax.

With interest rates at historic lows and the introduction of the new Savings Allowance, Cash ISAs arguably have become less attractive.  Stocks & Shares ISAs could be seen as a better alternative for those wishing to invest over the medium to long term. The ISA allowance has been increased substantially in recent years and there have also been changes in tax legislation (e.g. the ability to inherit an ISA allowance from a deceased spouse/civil partner) that have boosted the appeal of this already popular investment.

Your current and likely future income tax rate can help determine the most suitable wrapper. This might include using Investment Bonds, either onshore or offshore, which can offer tax planning opportunities, such as the ability to assign parts of the investment to a lower or nil rate tax payer before encashment.

Later in life, a wealth management company can help reduce the impact of Inheritance Tax (IHT) might become an important objective for you. We’ll explain the various ways in which IHT could be reduced from simple gifting strategies to trust-based investment solutions and also certain investments that can qualify for Business Property Relief (BPR). Investments that do qualify for BPR might fall outside of the IHT net after just two years provided certain conditions are met. However, such investments tend to expose your capital to higher levels of risk.

After many years of investing, most client portfolios will comprise a mix of cash, collectives, products and wrappers – and often with a number of different providers and managers that have been merged or acquired. This can complicate administration and record keeping – and so an administration system known as a ‘Wrap’ or ‘Platform’ can provide a good solution. 

A Wrap or Platform is a computerised administration system that allows on-line access to the accounts and investments at all times. Monies can be switched easily between funds, products and wrappers and usually with reduced time and cost compared to completing the same operation between different providers or managers. 

Tax

We’ll use your personal tax allowances to help maximise the returns obtained on your investments.  Where appropriate, this includes utilising your annual Capital Gains Tax (CGT) allowance, income tax thresholds and understanding whether IHT effective investments might be suitable.

Investment Reviews

Reviews, usually annually, are an integral part of our approach and are essential to ensure that your investment strategy and financial plan remains effective and stays firmly on track. 

The above information is not intended to constitute financial advice and we would strongly recommend you seek appropriate guidance from a suitably qualified and experienced Independent Financial Adviser before taking any action.

Further information about our Wealth Management Service in Tunbridge Wells and Kent can be found in our wealth management information sheet.