CASE STUDIES

Making Lives Better

“I'm a business owner/shareholder with family responsibilities -- asset rich, but time poor” 

 

This is a common challenge. On the one hand you have a lot of capital tied up in the business that you are hoping one day produces a life-changing capital event, but you also have a mortgage to pay and a family to feed.

 

As a full-service financial advisory firm, FLM provides advice on both tax efficient solutions as well as Personal and Business Accountancy. This means we are ideally placed to improve the efficiency of the income that you draw from the business which may improve cash flow and provide a little more money each month.

 

We also advise on succession planning for business owners. It’s important to recognise that your eventual business ‘exit’ may well come from within. We have a proven methodology for you to identify key members of staff and offer them equity in a highly tax efficient way. In our experience, the positive impact on the motivation and productivity of anyone that you empower to own a share of the company is massive and can drive the business to new heights; we would love to share our experience in this area with you.

 

We work with busy people who lack the time and the inclination to manage this minefield themselves. Our job is to provide bespoke recommendations and your job is to make quick decisions. We know that there is plenty that we can bring to the table and we would love to meet you.

Exit Strategies may include products and services that are separate and distinct to those offered by

St. James's Place

“I’m an HR director and I want to provide a financial wellbeing/education strategy for my team.” 

 

When the number one cause of stress in the UK is money, it makes sense that financial wellbeing and education has started forming a key part of employers benefits offering. When looking at your offering here it is important to recognise that the needs of your talent will vary greatly based on age, income, financial goals and family circumstances. Therefore a ‘one size fits all’ approach won’t be as effective as a tailored approach. At FLM, we opt for a bespoke approach to each company we work with to ensure that engagement is meaningful and your team get real benefit and direction as a result. This includes a mixture of seminars, webinars, ad hoc query referral, an AI app for coaching, regular communications or one to ones.

Another major reason employers like working with us in this capacity is our St. James’s Place partnership. Being affiliated with a FTSE100 company that guarantees the advice provided gives the HR team peace of mind that they are introducing a reputable and trustworthy source of guidance that won’t reflect poorly on them down the track.

Because we aim to handle all of our clients’ financial concerns under one roof (tax, accountancy, financial planning, wealth management, mortgage advice, trust and estate planning just some of the key areas we help with) your talent will benefit from our significant economies of scale and only have to deal with one point of contact for their relationship with us. By doing so we alleviate their concerns through our guidance and free up their time to focus on the job at hand leaving you with a happy and financially healthy workforce.

“The political climate and global economy are changing fast -- U.K. budgets and elections, legislation changes, Brexit -- and I don't know how this affects my money.” 

 

This is a relatively common opinion from the people that we meet – the fact is that the vast majority of these people are understandably far too busy with their own job, family, friends and other commitments to be able to spend enough time analysing the prevailing economic and political landscapes.

 

This is why a dedicated financial adviser is so important; people have never worked harder than they do now, and there are plenty of factors in the world that can mean that managing your own money, and getting it right, has never been more difficult.

 

An obvious example of this has been the wide-ranging changes to the pension landscape, with reductions in lifetime and annual allowances. We have been able to help many people through this particular minefield, ensuring the right decisions are being made at the right time, and that large unexpected tax issues are managed.

 

At FLM, we can ensure that you are well diversified, both from an asset and a geographical point of view – this means that any one political or economic decision will only be of limited effect to your portfolio of investments. This is usually in stark contrast to the holdings of an individual when we first meet with them, who, for obvious reasons, have the majority of their holdings in cash and property.

 

In short, our aim is to work with you to help you manage your investments and excess cash in a more effective way than you could do on your own. We can help identify how your money is being affected by these changes, and help to limit the impact of any adverse changes, as well as take advantage of any favourable ones if possible.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected any may fall as well as rise. You may get back less than the amount invested.

An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society. 

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

 

“I’m currently a professional earning a high salary, I have never really considered my financial circumstances thoroughly but I know I need to take a longer-term view to improve my work/life balance in the future.”

 

A high salary will leave you on the rough side of one of life’s certainties; taxes - high taxes for that matter. Many employed individuals believe that there is very little they can do to save tax but this is simply not the case.

 

As your life becomes more complex, there are many ways to reduce the tax you pay each year which ultimately will lead to a more enjoyable future. For example, if you can save £10,000 in tax each year, over 30 years, and you invest this money, it could leave you with a welcomed nest egg for your retirement. We believe in the concept of ‘tax alpha’, which entails making at least small tax savings each year to compound your life tax savings which can be utilised more efficiently. Exactly the same concept as compound growth on your investments.

 

A high salary also usually means that time is likely to be a prized asset. With a family, social life and work, all of a sudden time is passing by at the speed of light. We like to give time back to our clients by making their lives easier. Updating you when there is a need for change, and giving you a line in the sand four times a year to concentrate on your finances means you never lose track.

 

We will look after you, better than you look after yourself.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

“I've inherited a large sum of money, and want to take that responsibility seriously”

 

A large inheritance, whilst ostensibly a windfall, can be a double edged sword as it usually means the loss of a close family member or friend and an often prolonged probate process.

 

In such a situation our clients are grateful for our considered help and these sums may be life-changing. Not only can we offer advice around the tax implications but a dedicated FLM Financial Adviser can advise you on how such sums can be best placed so that the beneficiaries are able to make the most out of their inheritance. We can also facilitate introductions in respect of trusts so that these legacies may be past to future generations intact.

 

After feeling the teeth of Inheritance Tax bite, our clients are also glad when we are able to help them mitigate this tax for their own children. In utilising our full Financial Focus service, FLM can help with the complexities of inheritance and allow a smooth transition.

 

A large inheritance, carefully managed with our help, can turn from a daunting concept to a new level of financial security for you, your children, and beyond.

Trusts are not regulated by the Financial Conduct Authority.

“I'm a high net worth individual and I suspect my investments aren't working as hard for me as they could be” 

 

Your investments are no-doubt a product of your hard work over the years. Therefore, it is only fair that you look after them by keeping on top of their performance.

 

To give you an idea of the importance of investment growth – a pot of £100,000 which achieves a 4% per annum growth will become £324,340 in 30 years times. If the same pot is able to grow at 8% per annum, it will be worth £1,006,266.

 

The first thing FLM do for a new client is conduct a full and thorough review of all your policies and investments and establish whether there may be tax saving opportunities available. Then, a dedicated Financial Adviser can advise on how you could potentially improve, not only your investment returns, but also your tax efficiency. This will then form the basis of a specific plan to ensure you achieve your long term financial objectives. 

The value of an investment may fall as well as rise. You may get back less than the amount invested.

These figures are examples only and they are not guaranteed – they are not minimum and maximum amounts. What you get back depends on how your investment grows and the tax treatment of the investment. You could get back more or less than this.

“I'm getting closer to retirement and I want to ensure my pension and equity support my desired lifestyle”

 

Whether retirement is just around the corner or years away, it is important to start planning for retirement now. There is a cost of delay and the earlier you make a start, the easier it will be to create the lifestyle you want. The harsh reality is that the majority of us need to save more.  

 

Retirement planning is not limited to pensions; it is important to consider varying sources of income. We create tax-efficient, bespoke solutions for our clients, that allow them to make the most of the reliefs and allowances available to them now and in retirement.

 

If following our review it is established that further advice is needed in this area, as a Principal Partner Practice of St. James's Place, we can advise on a range of investment choices that allow a portfolio to include varying degrees of risk and styles of investment management to allow you to maintain a suitable investment strategy that will last well into later life.

 

We can assist our clients with not only navigating the murky waters of pension legislation but in committing to a plan for retirement and taking action.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Floors 2 & 3,

Basildon House,

7 Moorgate, 

London,

EC2R 6AF 

020 7710 3402

customerservice@flmltd.com

© 2019 FLM Ltd. 

FLM is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group's wealth management products and services, more details of which are set out on the Group's website www.sjp.co.uk/products. The title 'Partner Practice' is the marketing term used to describe St. James's Place representatives. FLM Wealth Management is a trading name of Financial Lifestyle Management Ltd.