Wealth Management & Investment Planning

What does investing mean?

A simple explanation of what investing is and what it means for you.

What happens when I invest?

When you invest, your money is used to buy different types of assets, such as stocks and shares (equities), bonds, property, and commodities such as gold and other natural resources. These assets are packaged together into funds and portfolios offered to investors by investment managers. Your adviser’s role is to understand what you want to achieve, to recommend the most suitable portfolio to get you there, and to be by your side through every step of the journey

How long should I invest for?

It’s important to understand that investing is a long-term commitment (typically five to ten years or longer). Markets and the value of your investment can fluctuate in the short term but in the long-term it pays to remain invested, as your money can recover in value and make a return if markets go up. It’s important to note that the returns are never guaranteed. Investments are affected by what happens in the market meaning that your investments will go up and down and you could get back less than you invested.

Instead of investing, should I keep money in my cash account?

Cash accounts from the bank or building society typically offer certain or near-certain returns. If your plans require a greater return than those offered by cash accounts, investing can be an effective way to help you achieve them. But you need to be comfortable with the risks involved. We explore these risks later in the guide.

Why should I invest?

People invest for many reasons, which help establish their financial goals. Some of the most common reasons you might invest include

Build your wealth; Investing intelligently over time can create wealth, financial freedom, and security through various strategies, fostering prosperity and growth.

Achieve your financial goals; Investing is essential for supporting life goals like buying a home, funding education, realising entrepreneurial aspirations, and more.

Live happily in retirement; Early, strategic investing for retirement harnesses time and compounding – earning interest on your interest – potentially securing a worry-free, desired lifestyle in your golden years.

Generate an income; Investment-generated income provides alternative earnings, potentially safeguarding you against economic downturns and unforeseen life events.

Work towards a better future; Investing goes beyond profit. Responsible investment in sustainability, social justice, and the environment can leave a positive legacy for future generations.

Build generational wealth; Long-term investing can build generational wealth and a legacy to leave, allowing you to empower a prosperous future for your loved ones.

Before you invest,

• Think about your current financial situation and where investing fits within your wider financial journey.
• Do you have enough money to invest?
• Assess your current financial situation and consider whether you can allocate a portion of your savings without compromising your immediate financial obligations or future goals.
• Do you have outstanding debts?
• Prioritise paying off high-interest debts, such as credit card balances or high-interest loans. High-interest debts can erode your financial stability and potential investment gains.
• Have you built up emergency cash savings?
• Unforeseen events like home repairs or sudden unemployment may be costly. Before committing to investing, establish an emergency cash savings fund. Ideally, this fund covers three to six months’ worth of living expenses and acts as a safety net.
• Do you have adequate financial protection?
• What would happen if you were off work due to sickness or an accident? Your financial adviser can help set up the financial protection you need.

Understanding investment risk,

Investment risk is the engine that drives investment returns. We believe that the key to managing risk is to fully understand how much risk an investment involves, what that might mean in different market conditions, and why that level of risk is right for you to take.

Your Adviser takes investment risk extremely seriously. It’s both the key to earning a higher return, and a potential cause of losses. It’s important to understand that not even the world’s foremost investment expert knows exactly what markets are going to do and when.

Instead, your Adviser will

Look to manage these risks and ensure that your money is invested across a wide enough range of assets to help balance the risk and rewards. This includes making adjustments regularly.

Help you to consider the economic and ‘life’ risks that you are exposed to, ensuring that you are investing at a level that you could still afford your day-to-day expenses should you become unable to work

Your risk profile is made up of four core elements. Your adviser will explore them with you, using psychometric testing to assess your risk profile and what investments they recommend.

Capacity

Can you afford to risk any money?

Tolerance

Do you have the psychological ability to cope with uncertainty, and to stand firm when markets take a turn for the worse?

Experience

Is this your first time in the market or are you a seasoned investor who has held assets through highs and lows before?

Goals

Do you need to take any risks to achieve your goals? If you don’t, then why take them?

Investment research and governance you can trust

It’s comforting to know that the Adviser who recommends your products to you, undergoes rigorous vetting and continual oversight from Quilter Financial Planning’s three tier approach to investment research and governance

1. Oversight

The Quilter Financial Planning Investment Oversight Committee (IOC) meets on a quarterly basis. It’s responsible for managing conduct risk and ensuring our investment panel provides good outcomes and fair treatment for customers. The committee consists of senior Quilter Financial Planning executives and non-executive members, which ensures we maintain a robust, rigorous and transparent approach to oversight.

2. Management

The day-to-day management of the investment panel is the responsibility of the Advice Investment Proposition Forum (AIPF), which reports to the IOC. The AIPF consists of senior Quilter Financial Planning executives and renowned industry experts from Square Mile, Morningstar, Defaqto and Moody’s Analytics who are responsible for providing valuable additional research and opinion.

3. Monitoring

To make sure the investment panel continues to meet the needs of our customers and performs in-line with their expectations the funds are electronically monitored on a continual basis. If any fund moves outside its pre-set parameters Quilter Financial Planning’s monitoring system automatically alerts the members of the AIPF. The system also monitors fund performance by benchmarking it against its peers and reports any changes. As an adviser we have access to the latest Morningstar reports that cover the performance of every fund in detail. This rigorous three tier approach means that making it onto Quilter Financial Planning’s investment panel is one thing, staying there is another. By continually monitoring the investment funds on our panel we can make sure they continue to meet the needs of our clients

Your Adviser is there to help you

Managing your finances effectively and making the right decisions for your future can seem a daunting prospect, so we’re here to help make the by referring you to a suitably trained professional Adviser.

Your Adviser takes pride in offering a personal service that takes into account your individual circumstances. Your financial situation is unique, so Your Adviser works hard to understand your goals and aspirations, and make financial recommendations based on a comprehensive and detailed analysis of your needs.

We can refer you to an Adviser who is able to help you with your financial planning needs, including

• Protecting against risk.
• Saving and investing for the future.   Planning for your retirement.
• Estate and trust planning.   Owning your own home.

Your next steps

Reflect on what you want to achieve by working with us.

Read your ‘Terms of Business’ to explore the services and fees that best suit you.

Let us know which service option you want to proceed with.

We’ll then get in touch to set up your next meeting.