1. ……….. dedicated to increasing your wealth
and protecting it from greedy bankers, crazy
Governments, desperate creditors and other
legalised robbers!
3. AGENDA
WHAT CHANGES IN DELIVERING FINANCIAL ADVICE MEAN FOR YOU
HOW ADVICE CAN MAKE YOU BETTER OFF
YOUR BIGGEST HIDDEN RISKS
WHY DIY FINANCIAL PLANNING GOES WRONG
WHO WOULD BENEFIT FROM ADVICE
PARTICULAR RISKS IN LATER LIFE
HOW TO MAKE YOUR MONEY LAST AS LONG AS YOU DO
5. WHAT CHANGES IN THE DELIVERY OF FINANCIAL ADVICE MEAN FOR YOU
OLD WORLD NEW WORLD
INDEPENDENT INDEPENDENT
TIED RESTRICTED
ADVISER
COMMISSION
CHARGING
LOW MUCH HIGHER
QUALIFICATIONS QUALIFICATIONS
6. HOW ADVICE CAN MAKE YOU BETTER OFF
£100,000 JOINT WHOLE OF LIFE INSURANCE
Legal & General £110 pm
Zurich £103 pm
Prudential £94 pm
Canada Life £30 pm
SAVING OVER 10 YEARS = £9,600
7. HOW ADVICE CAN MAKE YOU BETTER OFF
£75,000 PENSION POT
Existing Provider Annuity - £4,104 pa
Best Alternative - £5,519 pa
SAVING OVER 10 YEARS = £14,150
15. WHY DIY INVESTING GOES WRONG
SAME SECTOR!!
Worst performer
3 years ago
Top performer 3
years ago
16. Rank/%
Follow My Leader?
Annual 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 00/09
return
Commodities Property Commodities Emg Mkts HY Bonds Emg Mkts Europe ex UK Emg Mkts Gilts HY Bonds Emg Mkts
1 61.6% 7.1% 19.4% 40.5% 21.2% 50.5% 20.1% 37.5% 12.8% 101.7% 161.5%
Property Corp Bonds Property HY Bonds Property Japan Property Pacific ex Japan Cash Emg Mkts HY Bonds
2 10.5% 6.6% 10.5% 39.5% 18.9% 41.0% 18.1% 34.2% 5.7% 59.4% 153.97%
Corp Bonds Cash Corp Bonds Pacific ex Japan Emg Mkts Commodities UK Commodities Japan Pacific ex Japan Pacific ex Japan
3 10.2% 5.1% 9.8% 32.8% 17.4% 40.4% 16.8% 30.4% 1.3% 54.2% 108.6%
Gilts Gilts Gilt Europe ex UK Pacific ex Japan Pacific ex Japan Emg Mkts Europe ex UK Corp Bonds UK Property
4 8.8% 3.1% 9.3% 29.7% 13.9% 34.4% 16.3% 15.7% -3.6% 30.1% 81.5%
Diversity
Hedge Cash Japan Europe ex UK World ex UK Pacific ex Japan Hedge US Europe ex UK Corp Bonds
5 Strategic Wtg
2.8% 3.9% 24.7% 13.8% 24.9% 16.1% 10.3% -13.2% 20.1% 74.5%
6.13%
Diversity
Cash Pacific ex Japan Hedge UK UK Europe ex UK HY Bonds World ex UK World ex UK Gilts
6 6.0% 1.6% 1.0% 20.9% 12.8% 24.1% 11.8% 9.7%
Strategic Wtg
18.9% 70.0%
-13.22%
Diversity Diversity Diversity Diversity
Hedge Emg Mkts World ex UK UK Hedge World ex UK Commodities
7 4.1% 0.2%
Strategic Wtg
20.7%
Strategic Wtg
22.0% 10.4%
Strategic Wtg
-17.1%
Strategic Wtg
63.4%
-2.56% 9.8% 7.04% 12.38%
Diversity
Europe ex UK HY Bonds HY Bonds US Commodities Property Cash Hedge US Cash
8 1.7% -1.6% -11.% 15.3% 9.4% 18.8%
Strategic Wtg
6.2% -20.96% 12.2% 57.7%
7.74%
Diversity Diversity
HY Bonds Pacific ex Japan Hedge Japan US World ex UK UK Property Hedge
9 -1.9%
Strategic Wtg
-14.6% 11.6% 8.6% 16.9% 5.7% 5.3% -22.5% 11.6%
Strategic Wtg
-4.27% 57.21%
Diversity Diversity
US US Emg Mkts World ex UK Cash Gilts Europe ex UK Corp Bonds Hedge
10 -2.1% -9.8% -15.0%
Strategic Wtg
7.8%
Strategic Wtg
4.8% 5.3% -24.0% 11.1% 44.6%
11.41% 15.35%
World ex UK UK Japan Property Corp Bonds Corp Bonds US US HY Bonds Property Europe ex UK
11 -4.1% -13.3% -17.6% 11.2% 6.9% 8.7% 1.2% 3.3% -25.0% 2.2% 38.0%
UK World ex UK UK Commodities Hedge HY Bonds Corp Bonds Corp Bonds Commodities Cash UK
12 -5.9% -14.0% -22.7% 8.6% 6.8% 5.3% 0.8% 1.9% -25.9% 1.2% 17.7%
Emg Mkts Europe ex UK Europe ex UK Corp Bonds Gilts Gilts Gilts HY Bonds UK Commodities World ex UK
13 -25.1% -20.1% -27.0% 5.9% 6.6% 7.9% 0.7% -0.9% -29.9% 1.0% 11.1%
Pacific ex Japan Japan World ex UK Cash Cash Hedge Japan Property Pacific ex Japan Gilts US
14 -25.3% -27.5% -27.4% 3.6% 4.5% 7.5% -10.5% -5.5% -33.5% -1.2% -12.4%
Japan Commodities US Gilts US Cash Commodities Japan Emg Mkts Japan Japan
15 -27.4% -30.1% -29.8% 2.1% 3.0% 4.7% -25.5% -6.8% -35.2% -6.7% -34.7%
Source: Datastream and Morningstar (total return in Sterling) as at 31 December 2009.
16
Diversity strategic weighting = 34% FTSE All Share Index, 33% FTSE Govt All Stock Index,
You cannot predict the future
6% Goldman Sachs Commodity index, 7% UK IPD index, 20% HFRI FOF composite. Re-based annually.
17. THE PEN-LIFE INVESTMENT PROCESS
Risk rated portfolios
Asset allocation
Across all “tax wrappers”
“Best of the best” funds within each sector
Quarterly fund change and rebalancing
Quarterly reporting
19. WHO WOULD BENEFIT FROM ADVICE?
• People wanting to retire early
• Those with risks of loss of a wage earner
• Those seeking better returns on existing plans
• People wanting to reach a financial goal
• Those worried about the affect of Inheritance
Tax and care costs on their Estate
• Business owners wanting to exit the business
20. PARTICULAR RISKS IN LATER LIFE
80
75
70
65
60
THE RISK OF
55
LIVING TOO LONG
50
45
40
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Year
21. PARTICULAR RISKS IN LATER LIFE
Inheritance Tax – payable at
40% on assets above £325,000
So, estate worth £800,000
pays £190,000 tax
22. PARTICULAR RISKS IN LATER LIFE
People with more than £23,500
of savings have to pay for their
own care
Average UK care home costs
£700 per week (£36,400 pa)
23. PARTICULAR RISKS IN LATER LIFE
There are relatively painless
ways to solve the problems.
Most of them take time to be
effective.
You have to plan ahead – it
might be later than you think
24. HOW TO MAKE YOUR MONEY LAST AS LONG AS YOU DO
Portfolio growth and income options for £215,000
800000
HOARDING
700000
600000
5% Income from cash
500000
6% growth
400000
£
PDP 6% growth & 5%
Income
300000
200000
100000
SQUANDERING
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years
25. START WITH THE BASICS
Where there’s a Will
It’s estimated that less than 30%
of the UK population has a Will.
26. SUMMARY
WHAT CHANGES IN DELIVERING FINANCIAL ADVICE MEAN FOR YOU
HOW ADVICE CAN MAKE YOU BETTER OFF
YOUR BIGGEST HIDDEN RISKS
WHY DIY FINANCIAL PLANNING GOES WRONG
WHO WOULD BENEFIT FROM ADVICE
PARTICULAR RISKS IN LATER LIFE
HOW TO MAKE YOUR MONEY LAST AS LONG AS YOU DO
27. SO JOIN THE RANKS OF THE
HEALTHY, WEALTHY & WISE
BOOK YOUR FREE
DISCOVERY MEETING TODAY
