pyirjune2008

 

“Discover How To Plan Towards Your Ideal Retirement With The Programme That is Totally Impartial, Acts in YOUR Best Interests and Provides You With The Level of Ongoing Service You Are Looking For"

 

(and you’ll also know how much you need to invest each month to achieve the income level you require when you retire) 

 

If you apply successfully for one of the places available, you’ll also be dealing with one of two Financial Planners (not policy salespeople) who have 30+ years experience advising UK Resident Doctors and Dentists who will build you a strategic financial plan around YOUR goals, objectives and desires.

   Already decided? Click here to apply
  

 

Date: 12th June 2008
From: Ray Prince
RE: Planning Your Ideal Retirement Programme June 2008

 

Dear Doctor / Dentist

Let me share a story with you.

Six months ago we opened up the ‘Planning Your Ideal Retirement’ programme to applications and all 6 places were provisionally taken within 48 hours.

One of the applicants had recently seen their tied financial adviser and were not feeling comfortable with what had been recommended.

What they really wanted to know was whether they were investing enough towards retirement and if they should invest more or less into pensions.

Once we had conducted all the analysis necessary and measured where they were now in relation to their retirement income goals, we advised them to reduce the amount they were investing into pensions and invest the difference into ISAs (which would allow them to access 100% of the ISA monies in the future).

Back to the tied adviser.

He had recommended that they increase contributions by £1,000 per month to their personal pension. The worrying thing is that the adviser had no context of the clients’ overall affairs and had clearly focussed on selling a pension, whether or not it was the best solution available.

And this scenario is one that we regularly see from new clients, with a common question being:

"I’m not sure if I’m investing too much / too little to retire when I want to"

Of course, there is no way we can give them answers there and then.

In our experience, what new clients lack is a context upon which they can make the best decisions. A context that is 100% impartial and built around their objectives, goals and life aims.

And a context that can be compiled without giving any thought to investing more money until after they have this detailed insight into their financial future.

New clients are not alone in feeling this way.

So Why Didn’t Our New Client Know The Answers?

Well, there may have be a number of reasons:

• They had taken a reactive approach to their finances
• They didn’t have the time to sit down and take stock of where they were
• They lacked the resources or knowledge to make fully informed decisions
• Their accountant told them that pensions were the right option due to the tax breaks available
• They had dealt with a transaction based financial adviser who could not provide them with the necessary context
• They were fearful of altering their course of action

In our experience, clients want to know the answers to 4 major questions:

• How much should I be investing between now and my retirement? (read: financial independence)
• Where should I invest this money?
• How much risk should I be taking?
• Will my money last throughout old age?

Maybe you have your own questions as well.

What often surprises us is that even though the majority of our new clients are already dealing with a financial adviser, they don’t all have the answers to the 4 key questions.

Going back to our example client for a moment, once we’d completed the research and provided them with a clear financial roadmap (context) they were able to make the crucial decision about their pension investment with ease.

As they admitted, without the insight that they now had it was likely they would have continued down the same route as they were (and may even have invested more into pensions).

Is This Type of Service A Big Secret?

It’s crucial you know that there are two types of financial adviser / planner you can deal with.

The first type, who are often referred to as Financial Advisers, mainly offer a policy transaction based service. This is fine if you simply need to buy some life assurance or get a better deal on your mortgage. You may only deal with this type of adviser when you feel you have a need at the time.

The second type, who are often referred to as Financial Planners, aim to help you achieve your long term goals and objectives by creating a long term strategic financial plan for you. The important difference is that many charge their clients an ongoing fee as total impartiality is key to this whole process.

After all, if you are a risk adverse individual you’ll probably want your Financial Planner to advise you to repay debt rather than invest into the stock market. When working on a fee basis the Planner would be paid regardless of the outcome.

(Interestingly, in a survey we conducted in May of this year we asked what type of adviser / planner people were dealing with. Whilst 56% said they were dealing with a Financial Adviser, only 9% were dealing with a Financial Planner).

Of the 80,000 or so registered financial advisers / planners in the UK, just over 2% are members of the Institute of Financial Planning, who are the body that promotes the benefits of clients working with Financial Planners.

Does this mean that transactional based Financial Advisers are doing a disservice to their clients?

Not necessarily.

But you may be able to get a better insight into your financial future by working alongside a Financial Planner that has invested in the right tools, training and processes to deliver a service that really focusses on you, the individual, rather than a product-led approach.

So What Gives Me The Right To Speak To You Today?

My name is Ray Prince, and along with my colleague Graeme Urwin, we head up the medical and dental financial planning division at Rutherford Wilkinson plc, based in Newcastle upon Tyne.

Collectively, we’ve dealt with the financial planning needs of UK resident doctors and dentists for over 30 years and have clients spread all over the UK and overseas.

Our passion is helping everyone we meet build a firm foundation for the future, not just purchase a number of financial policies that are reviewed every 5 years or so (which is a common mistake many make).

We’ve seen just about every investment product and ‘scheme’ you can think of and our years of working ‘in the trenches’ with clients means we know what works, and more importantly, what doesn’t.

We’re also publishers of the popular ‘Financial Tips’ email newsletter and the video format ‘newsletter’ – Moneycast.

We’re big believers in educating our clients and helping them be better prepared for their financial futures.

(You can also google my name or read more about us here – will open in same browser window – hit the back button in your browser to return to this page).

And you can read what we’ve written recently in the media here - will open in same browser window – hit the back button in your browser to return to this page.

But rather than hear it from me, listen to what others have been saying about us (turn your speakers on):

Christopher Morrell is a Private Dentist
in Amersham, Bucks
(running time 2:07)

 

Angus Walls is a Clinical Academic
at Newcastle Dental School
(running time 0:50)

Andrew Tennant is a Dentist in Hertfordshire
(running time 1:01)

Paul Sidhu is a Consultant Radiologist
at King’s College Hospital, London
(running time 1:06)

 

You can also read their comments here  (will open in same browser window – hit the back button in your browser to return to this page).

Introducing The Planning Your Ideal Retirement Programme June 2008

In the survey we conducted in May we also asked our ‘Financial Tips’ readers what their key financial priority is today. The top 3 replies were:

• Planning my retirement
• I want to know how much I need to invest towards retirement
• How to manage my investments

We also have the benefit of hindsight that comes with dealing with numerous clients over the years. The key is that we’ve been able to develop a unique insight into what is important to doctors and dentists when it comes to planning their financial futures.

Do You Qualify?

We do not take on everyone as a client. One of the main reasons is that it’s important to us that if someone is willing to invest their time and money to work with us, it’s crucial that we are able to make a real difference to their lives.

The Programme may be suitable for you if:

You want to build wealth on a consistent basis by following a disciplined approach to investing. You understand that investing is not speculating and you keep faith that your financial assets will grow in the long run as long as you follow a disciplined approach to wealth building, despite the frequent fluctuations in the financial markets.

You are open to change. You know that the methods that have worked for you in the past may not help you achieve your financial goals in the future. You realise that if you want different results you may need to try new approaches.

You are action oriented and committed to getting things done. You know that creating a sound financial plan for your future will take a certain amount of commitment on your part and are prepared to commit the time and resources to achieve the results you want.

You understand that an impartial financial planning service is worth paying for. You know that getting advice that is totally impartial, without bias, can only be achieved by paying a fee for that service.

You are willing to share your financial concerns / objectives and fully disclose your financial information. You want to have a comprehensive financial plan to help you gain a sense of control over your finances and strengthen your financial future.

You like to work collaboratively and in partnership. You don’t want to feel like you’re being ‘sold to’ and want to work alongside someone who will help you develop a strategy for retirement and the rest of your life.

You have a minimum of £100,000 in existing investments (such as personal pensions, ISAs, etc) or have £100,000 available to invest (although you may not end up investing the money if it is not the right course of action).

Once you’ve been through the Programme our aim is that you will:

• Have clarity about your financial future
• Make your financial decisions with more confidence
• Have total peace of mind

We believe that we are here to implement what you’d do for yourself if you had the time, expertise and resources. It’s your financial planning that we’re helping you with and we’ll always treat is as such.

We also like to think we’re approachable and easy to deal with, whilst maintaining enough ‘financial seriousness’ throughout the process.

Whilst we think what we’ve put together is a fantastic Programme that offers various benefits and value for money, we do accept that there might be reasons why you are sceptical in responding:

You don’t trust financial advisers

There have been mis-selling scandals in the past, and you’re right to be cautious. There are many different types of adviser and it can be hard to choose the right one to work with. You’ll find that we’re different as what we offer is a long term financial planning service, not a policy retailing facility.

You already have a financial adviser

We understand and appreciate you may have an existing relationship with an adviser. However, if your adviser is not a specialist you may want to seek a second opinion to ensure your retirement planning is organised properly. Your financial affairs are unique, so you should be able to achieve more working alongside a specialist adviser.

We have been able to significantly improve the financial position of many clients who have previously worked with a general adviser.

You’re too busy

It seems the pace of change and the demands on our lives is relentless. We’re all trying to achieve a work / life balance but there doesn’t seem to be enough hours in the day. Our role is to take the hassle and complication away from you when planning your finances, saving you valuable time as well as giving you peace of mind. The majority of our clients only need to commit 1 - 2 hours per year to keep their retirement planning on track.

You’re confused by all the financial Jargon – (SIPPS, ISA, PHI, OEICS)

All professions have their jargon (CPD, BDA, GDC, TMJ etc). You can rely on us to speak in clear language that you can understand, whatever your existing level of knowledge.

You think we’re just going to sell you a product

Well, if you need a financial product we’ll help you to buy one from the thousands available. If you don’t need a product (which is often the case) we will not recommend one to you.

We start by looking at what your objectives and goals are and structure everything around that. In fact, on many occasions we’ve encouraged clients to cancel products, helping them to make instant savings. Why pay for something you don’t need?

It’s going to cost you too much money

As you know in life it’s all too easy to choose any type of service or product on price. Most of us also know that paying the least means that’s probably what we’ll get. If you’re concerned about being financially independent and secure and want to make the most of all tax breaks available, then you really can’t afford not to see a specialist (even if it’s only once).

If you deal with a specialist Financial Planner they should be in a position to save you £000’s over the longer term by identifying any holes in your current financial planning.

We make no apologies for charging fees for our services. Really, it’s the only way you can trust that the advice is impartial.

Your existing financial adviser’s services are free of charge

This probably means that they work on a commission basis. If this is the case, you need to be aware that you are paying a commission loaded premium on your protection policies and a percentage of your investments will also be paid as commission.

Don’t get the two types of service confused though. We’re offering you a fee based financial planning service, as opposed to a policy retailing service (the latter could be fine if that’s all you need).

You think that you can do it all yourself

The chances are with all the information available on the internet you can do a lot of planning yourself, but it’s a bit like one of your patients trying to treat themselves. They just don’t have the experience to diagnose potential problems (and be objective), let alone come up with the most effective solution. We can help you spot potential problems now and in the future.

Your accountant does it all for you

Traditionally, accountants look at the past and create profit & loss accounts and balance sheets and some of the more specialist accountants will help you to analyse those figures. We are proactive and will look at where you want to be in 3, 5, 10, 20 years time, and help you get there, making the most of the tax breaks on the way (although we’re not a replacement for your accountant).

You’ve had poor advice in the past

If this has been your experience we want to reassure you that we place quality at the forefront of everything we do. Whilst we cannot change the past we can make a positive difference to your future financial planning. By offering a fee based financial planning service we have been able to remove commission from the process, which in turn helps you view your plans objectively and without question of bias.

You don’t know who we are

As you’ll see below, we actually pay for the initial ‘Discovery’ meeting to give you the opportunity to get to know us and ask us any questions you may have, without any financial risk to you. Only then will you have to decide if you want to work with us.

Here’s What’s Included in the Programme

The Programme has been designed with the aim of enabling you to approach your retirement planning with absolute clarity and to put you in a position so that you know what action to take, year in, year out.

Step 2 – Where Are You Now?

• What assets and liabilities do you have today?

• Analysis of your investment fund performance

• A check of your exposure to investment risk

• A full breakdown of your current Asset Allocation on your investment portfolio

• Analysis of your investment fund costs

• Protection review to ensure you are covered in all the important areas

• Mortgage and debt audit to ensure you are paying the lowest possible interest rate and whether you can save more with an offset flexible loan

• Review of endowment plans and your options explained – should you retain them or sell / cash them in?

• Pension update so you know what income you can expect in the future, including the NHS Pension Scheme and State Benefits

• Estate planning review, which will highlight where you stand with Inheritance Tax

• Review of your will, ensuring it is structured properly and includes all your intended beneficiaries

• Check if you have Continuing / Lasting Powers of Attorney, designed to protect you in the event of mental incapacity or being unable to care for yourself

• Help you organise your paperwork and throw away old statements and correspondence that you don’t need

Step 3 – Forecasting The Future

• We will compile your own financial and lifetime forecast to enable us to create the context upon which you can make your financial decisions

• Using our forecasting tools you’ll be able to see exactly how long your money will last over the short, medium and long term

• As you will have your own ‘financial map’, you’ll be able to see if you can achieve your goals by taking less risk with your investments than you are now

Step 4 – What Are Your Options?

• From this forecasting analysis we’ll discuss what action you need to take. This may involve investing more money into your investment programme, diverting money from one tax wrapper to another or even reducing the amount you are investing so that you can spend more

• You’ll know how much you need to invest (assuming you need to invest more money) on a monthly basis (or lump sums)

• You’ll know which tax wrappers to invest in and the pros and cons of each

• We’ll look at reducing any debt you have, including personal and business mortgages

Step 5 – Taking Action

• We’ll create an investment portfolio in line with your attitude to risk, designed to help you achieve your goals

• You’ll find out what your investment costs are (including all the ‘hidden’ charges) and what alternatives you have available

• You’ll find out how you can potentially reduce your current investment costs, putting more money into your investment programme every year without the need to invest more

• You’ll have the option of reducing your paperwork load by using one investment administration provider rather than several

• We’ll recommend the relevant tax wrappers for you to invest into, including ISAs and personal pensions

• How you should set up your future retirement planning, taking into account any NHS Pension benefits you have accrued to date (especially important if you have left or are planning to leave the NHS)

• We’ll research the mortgage market to find you the right deal that suits your circumstances and overall goals. This includes current account and offset mortgages

• We’ll explore ways in which you can mitigate any Inheritance Tax liability, as well as recommending how your overall estate should be structured. This ‘generation planning’ will address assets that pass in and out of your estate

• We’ll research ‘advanced investment opportunities’ for you (such as Venture Capital Trusts), if appropriate

• You’ll receive a summary report detailing an overview of our research findings and recommendations so you can take your time with your decisions

Step 6 – Implementation

• Once you’ve agreed what work needs to be done, we’ll organise all the paperwork for you

• We’ll complete as much of the paperwork for you as possible to save you time

• If you’d like us to, we’ll refer you to other professionals such as a solicitor, as and when the need arises

• Our Client Support Team (and your Financial Planner) will be available to call with any queries

• Each application will be tracked through to completion

• You will receive your policy documents once everything has been set up

Step 7 – The Future

It’s not much use investing the time necessary to plan towards your ideal retirement and not keeping on top of your finances in the future. As your partner in building wealth and security, we focus on ways that can help you to live the life that you want to live.

By choosing to work with us you assure yourself of regular financial checkups and access to new ideas brought to you by the RW plc team. Step 7, the review service, is designed to keep you on track. You will find out how this works and what is involved during our initial discussions.

Andrew Jones is a Dentist in South Wales
with 2 practices
(running time 0:58)

Karen Sutton is a Dentist in Herefordshire
(running time 2:04)

You can also read their comments here (will open in same browser window – hit the back button in your browser to return to this page).

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