Do you remember the Mastercard ‘priceless’ campaign of the late 1990s?
These iconic adverts reminded the viewer, usually in a funny or thought-provoking way, that there are some things that money can’t buy.
These Priceless adverts came to mind when I reflected recently on the value of financial planning.
You see, a lot of what we do for our clients has a tangible value attached. But many other elements of our service can only be described as ‘priceless’.
Recent studies by the have found that those who used financial advice were better off than similar individuals who did not take advice.
A study originating in the United States concluded that the services provided by an excellent financial adviser have the potential to add around 3% each year to your investment returns. So we know that working with a financial adviser can make you wealthier.
The ‘Adviser Alpha’ study from investment provider Vanguard quantified the potential value added to an investor from services including rebalancing investment portfolios to manage risk, selecting low-cost investments and behavioural coaching.
When compared to the cost of ongoing advice, this added return through the provision of financial advice is excellent value.
But what takes financial advice from something valuable to something priceless? In my mind, it’s the less tangible benefits of what we do that make our services invaluable.
For example, we ensure things get done.
All too often, it’s easy to set financial goals (especially at this time of the year, when Resolutions abound), but fail to follow through and execute these goals as planned. By working with a financial adviser, we help life work by holding you to account and making sure these ambitions are realised.
There are some unquantifiable aspects of our role, which are undoubtedly priceless. We help our clients avoid the biases which arise a result of merely being human. These are biases which can derail even the most experienced and sensible investors.
One of the most important benefits our clients tell us we provide is delivering peace of mind. The ability to sleep well at night, safe in the knowledge that you have a plan for the future, is priceless.
Peace of mind ties in closely with the reassurance that you are making the right decisions, for you and your family.
One of the results of a financial plan includes being able to spend your time doing the things you enjoy, safe in the knowledge you won’t run out of money in the future, and your investments are in an appropriate place.
When the clients we work with can confidently provide financial assistance to adult children or other family members, they tell us this is priceless too.
If we believe everything we read in the press, working with a financial adviser is all about picking the best investment funds and being sold products to fill gaps. I hope this article shows you that, in addition to the tangible benefits of working with a financial adviser, it’s something that results in a priceless outcome too.
Last month, we took part in the Wells Dementia Alliance Walk, raising money for those in the Wells community living with dementia, as well as their carers.
Despite the wet weather over 60 people turned out along with lots of dogs!
Len Sweales the Wells Town Crier gave us a great welcome and the Rt Rev Peter Hancock Diocese of Bath & Wells started the walk. We were lucky to have Mayor John Osman and Tessa Munt join us as well!
A total of £750 has been raised to date.
It’s worth remembering that dementia is not a normal part of the ageing process. But with more of us living longer lives, the diseases of the brain which cause dementia are becoming more widespread.
There are 850,000 people with dementia in the UK, with numbers set to rise to over 1 million by 2025. This is forecast to soar to 2 million by 2051.
Team members from our Bristol and Wells offices came together in June to complete the South to North Dartmoor Challenge 2019.
Ten members of the team walked 30 miles over rough terrain and undulating ground, including bogs (nobody fell in, fortunately).
On day one, we walked from Ivybridge to Princetown, staying overnight in a bunk house – thankfully it was next door to a pub!
Before setting out the next morning, we enjoyed a cracking fry-up breakfast, courtesy of Andy Weston and Neil Pinney.
On day two, we completed the challenge, walking from Princetown to Meldon.
In addition to the long distance covered, the hot weather added another challenge to the event, trying to avoid sunburn.
The team raised more than £1,000 which has been donated to St Margaret’s Hospice and Children’s Hospice South West.
Earlier in the summer, we wished Arnold and Julie Wills a fond farewell from Pilgrim Financial Planning with an evening celebration in Wells.
They officially finished with the business on 30th June and, while we were sad to see them go, it was a fantastic opportunity to wish them well, along with other local professionals from the Wells community.
Arnold has been a local financial adviser for 36 years, commenting that he will be “looking forward to having more family time and time to enjoy his hobbies, particularly his music interests and travelling.”
All who know Arnold knows that he won’t be putting his feet up in retirement! He will continue to be active in the local community.
Julie is also looking forward to having more free time to develop her hobbies, now their four children have finished their schooling.
The evening was enjoyed with wine tasting at Vicars Hall, where we were also able to raise £1,000 to donate to the YMCA in Wells.
Michelle Payne, marketing manager for YMCA Mendip and South Somerset, mentioned in her thanks, “Our services are not just about providing safe accommodation for the vulnerable homeless; but also provide support, guidance, encouragement and opportunities that are so vitally important. Donations like yours mean we can carry on providing the important services we do.”
The evening was a fitting farewell and acknowledgement of Arnold and Julie’s excellent work, building Pilgrim Financial Planning over the past 24 years, as well as their commitment to the local community.
Arnold has always been passionate about providing impartial advice. He said, “I’m confident in the future of Pilgrim and that the directors and teams will continue to provide a caring and professional service.”
The reasons for arranging a meeting with a Financial Planner are many and varied.
Historically, we would talk about the ‘Four D’s’ as the biggest drivers of financial advice; these big four are death, debt, disease and divorce.
As morbid and miserable as these drivers were, they often gave individuals and families a reason to seek out professional advice, usually at a difficult time in life.
Thankfully, the drivers of advice seem to have moved on to encompass a much more extensive range of reasons, many of them happy and positive!
One recent example involved a client initially wanting to explore some questions about a trust investment and her pensions. Our conversation developed into a broader conversation about what they wanted to get out of life, and culminated in the creation of a comprehensive financial plan.
She told me that there was a light-bulb moment when all of the parts of her financial plan came together; a sentiment we often hear from clients when presented with a financial plan for the first time.
An important part of the financial planning process is the creation of a lifetime cash flow forecast, which allows clients to see how different decisions or life events might influence their wealth in all stages of life. We create these forecasts using reasonable assumptions about the future, and keep them under regular review as external factors including investment returns and price inflation change over time.
When we create a financial plan for someone who needs to make important choices about their life, such as whether to give up a particular job so they can retire, or downsizing to a smaller property, the plan offers a high degree of comfort that decisions are sound.
I particularly love when the financial planning process opens eyes to the fact that clients can afford to do the things they want today. All too often, we’re scared to make big decisions because of the absence of certainty around our finances. The financial planning process introduces that certainty.
It’s especially satisfying when that certainty is originally triggered by a conversation about a small part of the financial planning world, such as a trust investment or an old pension plan.
What are some of the big current or upcoming events in your life that could prompt you to call one of our Financial Planners?
We all know people who aren’t sure whether they need a financial planner, don’t need a financial planner, or don’t know what a financial planner is. Two years ago, I was discussing some ‘rules of thumb’ with a friend whose son had recently left university and, for the first time, had become financially independent. My friend passed the tips on to her son and recently told me that they’ve helped him to feel financially on track.
Passing on some common sense when it comes to personal finance can be seriously powerful and occasionally life changing. With that in mind, if you know anyone who needs help with their finances, here are a few basic tips you can pass on to them to offer a little help:
These four habits require effort, practice and they are only the beginning of a true financial plan (let us not forget inflation!) but they can really build a solid foundation for a financially secure future and we all want that for the people we care about.
Finally (and this will probably be the most uncomfortable part of the conversation), tell them to plan for the worst, insure any loans that they take out (mortgages for example), find a couple of people they trust and set up Lasting Powers of Attorney and remind them that it’s only polite to your family and friends to speak to a solicitor and leave a Will.
I hope this does help someone in your life as much as it has helped those in mine, but at the very least, I hope it answers the question of whether your friends and family need a financial planner or not, or even just gives them an idea of what a financial planner is!
A Sporting Bunch
There have been a lot of sporting achievements and upcoming physical challenges within the team recently and we thought that it would be nice to share these in Navigator.
After last years successful Brecon Beacon Challenge (in which the team raised over £1,000 for the Alzheimer’s Society), next month half of us will be climbing up Scafell Pike to raise money for Children’s Hospice South West.
Our very own Steve Brady has been selected to represent England in the over 50’s Hockey team (and went on to win every game in their first tournament) and we have recently sponsored the exciting young Bath Rugby player Josh Bayliss.
On the 7th of July a team of 9 will be heading to the lakes in the very early hours of Saturday morning to climb and conquer Scafell Pike. After a long day of walking we will then nip up the Old Man of Coniston and back on the Sunday morning, before the long drive home. We are taking on this challenge to raise funds for the Children’s Hospice South West, an amazing local charity which we have had a close connection with over many years.
Many of us have visited the hospice at Charlton Farm in Wraxall and have seen first-hand the incredible work that they do. If you would like to sponsor us we would be very grateful for any donations, big or small – just click the link below to donate via our just giving page;
We will be sure to let you know how we get on and thank you in advance for your support.
Further information about Children’s Hospice South West and their work can be found at the bottom of this article.
Steve’s Playing for England!
We’d like to congratulate Steve Brady, a director of the firm, on being selected to represent the England over 50’s Hockey team. This is a fantastic achievement for Steve who has now had the opportunity to represent England on the world stage. Steve has now played his first International Hockey tournament, representing England at the Home Nations competition in London. England managed to win every game without conceding a single goal.
I asked Steve if there was anything he’d like mentioned in this article and his response was ‘feel free to use words like heroic’.
A glass to Steve… Heroic!
Sponsoring a Future Rugby Legend
We’re delighted to announce that we are sponsoring the exciting young Bath rugby player – Josh Bayliss.
A local lad, Josh is a former pupil at Millfield School in Glastonbury. He was a member of the England under 20’s squad that went on to achieve a Six Nations Grand Slam and a place in the 2017 World Rugby under 20’s Championship. He made his first team debut for Bath in 2016 and has been hailed one of the most exciting back row players in the country.
A little more about Children’s Hospice South West
Children’s Hospice South West provide care for children with life-threatening conditions by providing hospice care and profession family support services. They are dedicated to making the most of short and previous lives through the provision of the best possible hospice care for children and your people with life-limiting conditions. The care offered is not just about medical and nursing support for sick children but is also about enriching the lives of the children and their whole family. They provide specialist palliative care, respite for the whole family, a sibling service for brothers and sisters, emergency support, end of life care and a bereavement service for as a long as it is needed.
We’ve always been proud of the individuals at Brunel and Pilgrim and their academic achievements (whether that is achieving Chartered Status, Financial Planning and Paraplanning Diplomas or learning Spanish) but we’re now proud to announce that as a collective, we’re TWO of the few firms in the country to achieve Chartered Status. That’s both Brunel and Pilgrim.
In this section we look a little further at what this means, discuss our recent Cyberplus Accreditation (and how this safeguards you) and our Managing Director Damien talks about his new role on the Personal Finance Society’s Financial Planning Expert Practitioner Panel, as a leading expert to help improve the Financial Planning Industry.
Chartered status is an exclusive title only awarded to firms which meet rigorous criteria relating to professionalism and capability. The award is granted by the Chartered Insurance Institute the professional body for insurance and financial planning. To achieve this status we were required to demonstrate a commitment to developing knowledge, enhancing capability and maintaining ethical standards. This provides all our clients with the reassurance that we are operate in an ethical manner, put our clients interest first and provide high quality advice based solely on our clients’ researched needs.
To date, fewer than 700 firms have achieved Chartered status which indicates that this is a highly coveted award reserved for the leading firms within the financial advice market.
We will be working hard to maintain these standards and providing a commitment to customer service and professionalism.
As a firm we have also recently achieved Cyber Essentials accreditation. Cyber Essentials aims to help organisations implement good levels of protection against cyber-attacks. In addition we have undertaken further assessment with IASME to demonstrate that we have taken into account the requirements of the General Data protection regulation (GDPR).
The IASME Governance standard, based on international best practice, is risk-based and includes aspects such as physical security, staff awareness, and data backup. The IASME standard was recently recognised as the best cyber security standard for small companies by the UK Government.
IASME is one of just five companies appointed as Accreditation Bodies for assessing and certifying against the Government’s Cyber Essentials Scheme. The Scheme focuses on the five most important technical security controls. These controls were identified by the government as those that, if they had been in place, would have stopped the majority of the successful cyber attacks over the last few years.
We take our client’s cyber security seriously and would urge you to look for this accreditation with other organisations you may deal with online!
Damien’s New Role on the Financial Planning Expert Practitioner Panel
As an organisation we are always looking for new challenges, especially in areas where we can make a difference. One of my new responsibilities, and something I’m hugely excited about, will be to sit on the Personal Finance Society’s (PFS) Financial Planning Expert Practitioner Panel. I was delighted and honoured to be chosen as one of the inaugural members of this new panel of financial planners.
The timing couldn’t be better. There is a real buzz about the financial planning profession, and a quiet revolution of planning excellence is gathering pace.
The Vital Role of the Personal Finance Society
I’ll come on to the panel shortly but first a quick look at the PFS and why they’re so vital. They are the professional body for financial advisors in the UK and they exist to promote high standards across the financial advice community. In climates like this, where the public can be suspicious of financial institutions, we need bodies like the PFS to help strengthen confidence in our profession.
The PFS is well qualified to do it. They have a long and commendable history of championing professionalism, promoting technical knowledge and establishing high levels of client service and ethical practice.
The PFS has recently announced its new President will be Sharon Sutton. Sharon is Managing Director of Thornton Associates Ltd, Chartered Financial Planners, based on the Isle of Man, where she was the island’s first Chartered Financial Planner. Sharon’s biography on the PFS website says she “believes in educating people to take control of their lives through financial planning so they can seek to achieve their dreams and don’t run out of money”. I know Sharon personally, and I also know that we’re going to get on very well as that fits exactly with the philosophy of Brunel and Pilgrim.
My Role on the Financial Planning Expert Practitioner Panel
One of the ways the PFS will achieve this is through the new Financial Planning Expert Practitioner Panel. The panel has been established to guide the PFS as it broadens its Continuing Professional Development (CPD) programme to incorporate inspirational financial planning good practice. The first meeting took place earlier this month. As well as myself, the panel comprises another 11 members from the financial planning industry. Without wanting to sound immodest, Sharon Sutton commented that it brings together “a distinguished and passionate group of individuals who are willing to share what they have learned for the benefit of the wider profession.”
The PFS has established the panel to provide financial planning insight and guidance to the wider profession as part of a continued focus on consumer outcomes and business sustainability. This is great news for clients as it seeks to ensure they receive the best service from advisers who are themselves benefitting from guidance on best practice across the industry. We on the panel will meet regularly to develop guidelines and amass insight on good practice to distribute and make available for PFS members. We’ll also be seeking to arrange a series of specialist events and we’re working on a good practice guide resource for advisers.
A Foundation of Trust and Confidence
Helping people to take control of their finances, gain financial freedom and make their dreams a reality are the principles that Brunel and Pilgrim are built on. But before we can help people achieve this, we need to build a foundation of trust and confidence in the professionalism and ethical standards of financial planning. It’s a responsibility that falls to us all, as financial advisers, and extends right across our profession. As a member of the new Financial Planning Expert Practitioner Panel I’m hugely looking forward to taking on this responsibility in the new term ahead.
If you know someone that would like some guidance on their financial planning, please do drop me a line or call me on 0117 214 0870.
How much money do you need for the rest of your life? It’s a big question. More than that – it’s a big question that leads to hundreds, maybe thousands of other big questions.
So let me start again…
What do you want to do with the rest of your life?
You can’t answer the first question without the second, and you can’t achieve the second question without the first. Then there’s the third question – What will the rest of your life throw at you?
If you can answer these three questions accurately, you’ve got your number.
Your number is the amount you need to live the way you want to live for the rest of your life, confident that you will never run out of money. Complete financial independence, or, if you prefer, freedom.
Most people don’t take the time to find out their Number and those who do find that it’s ever changing. You can work out your Number at, say, 30 and then find that it’s a completely different Number when you’ve reached 40. Your lifestyle will have changed, your aspirations may have changed, and then there’s the costs of living and potentially long term healthcare provisions to compete with! It’s not easy finding your Number but it’s certainly necessary.
Finding your Number
Remember those three tricky questions? Well let’s take a closer look at them.
What do you want to do with the rest of your life?
We’ve heard the same answer to this question over and over again: ‘After I’ve retired I want to maintain my current lifestyle without ever running out of money’. But after delving deeper we’ve found that this is never the case. Some people want to support a charity or pass money onto their children, some people want to pursue a passion with their new found time, and some folk just want to live a simpler and calmer life – these are the people who find that their number is smaller than they thought. The point is that the very nature of your lifestyle will change in retirement so to just ‘maintain your current lifestyle’ is never enough. Which brings us to our next question:
What will the rest of your life throw at you?
This question addresses those uncertainties that will change your future and that are beyond your control. Maybe one of your children will unexpectedly boomerang back into your home, or maybe, hopefully, you’ll win big on the horses. One unfortunate scenario that keeps popping up these days is the increasing need for long term care, the cost of which is often grossly underestimated (fingers crossed for those horses eh?) To be truly comfortable with your number you need to prepare for all of these uncertainties.
Finally, how much money do you need for the rest of your life?
Of course there isn’t a definite answer to this, but if you know what you want to do with the rest of your life it’s possible to make a rough estimation as to how much that might cost. Then, using the various possible answers for what the rest of your life might throw at you, it’s possible to create different scenarios to see how you would fair financially under each circumstance. Finally, you factor in your life expectancy, and let’s be generous here – no-one wants to fear living too long!
When you think you might have an idea of what your number is, you plan for it, and then you update it, and then you plan for it again. You keep on top of your number, and eventually, when you’ve got it, you use it.
Using your number
Finding your number involves a lot of hard to answer questions, but once you’ve found it you’ll have a great deal of answers too. You may already have savings, but now you’ll know what you’re saving for and this will help you to save effectively. You might want an early retirement but may not be sure how early your savings will manage, but if you know your number, you’ve got your date.
But it goes further than that – just thinking seriously about your number now might change how you retire later, maybe you’ve been spending too much and need to cut back slightly now to live the rest of your life exactly how you want to live it. Or maybe, just maybe, you’ve already reached your number…
How much money do you need for the rest of your life? It is a big question that can lead to hundreds, maybe thousands of other big questions, but knowing your number may well change your life.
By Tim Ewins, Paraplanner, Brunel Capital Partners
We know that everyone is different. We all want different things in our lifetime, we all have different desires and objectives and similarly, although we may not like to talk about it, we all have different wants for when we die as well.
But it is because of our differences that is important to talk about what we want to happen when we die. There can be a lot to sort out for whoever you leave behind. We have developed ‘In Case of Emergency’ (I.C.E) packs to help make talking about what you want easier, and to make the process for your loved ones as pain free as possible.
In these packs you can keep an up to date and simple record of anything anyone would need to know about your financial affairs after you pass away. This includes things like:
There are also booklets included from Age UK, providing you with details of what the key duties on death are and what to expect if you are asked to be an executor.
Of course, we will be on hand to help your loved ones in any way possible in such an event, but these packs will help those that you love to understand what you want when you die and will help the process to run as efficiently as possible to give them the time they need to focus on what really matters.
By Naomi Davidson, Client Services Administrator