“A goal without a plan is just a wish”
You have some money to invest – an inheritance or spare income after a pay rise, or perhaps you are reviewing your existing accounts – but are the investments you hold the most important piece of the puzzle?
Investing, on its own, can be done cheaply and easily, but it can be extremely worthwhile to pay for the professional services of an investment manager or financial planner to help manage your money effectively.
Investment management focuses solely on the investment of a client’s assets, with the investment manager making decisions on where your money is invested, usually targeting an agreed level of risk and timeframe. You can also incorporate personal preferences such as only investing in socially responsible companies. You benefit from the ongoing research carried out by the investment management firm, and their expertise in selecting the “best of breed” funds or shares from the 1,000’s that are available.
Financial planning looks at the bigger picture, creating a strategy for how your investments, savings and other assets can help to meet your financial objectives. Most importantly, this is based on your personal circumstances, making sure any plan is specific to the individual or family being advised. Your financial planner will help you work out your priorities and where compromises may need to be made to build a realistic and achievable plan for your future. For example, you may want to save for your retirement and already be investing in a pension, but do you know if you are saving enough or the age you could afford to stop working? Furthermore, do you have a strategy for taking an income when you do retire to make sure you don’t run out of money?
As with investing, you can create your own financial plan but the added advice and expertise from a financial planner can be invaluable, especially when you need an impartial opinion or reassurance during difficult times. As an example of where this hand holding can deliver results we can look back just 3 years to the start of the Covid-19 pandemic. You may have been tempted to sell all your investments to cash when markets fell by 25% in the space of a month(1) but had you remained invested you would have achieved a +19% return by the end of the 2022 calendar year(2).
Financial planning and investment management go hand in hand with both aspects an important part of creating a solid long-term strategy. At Five Wealth, we believe the financial plan should be the starting point for anyone looking to start saving towards a financial goal or reviewing their existing arrangements. We then build an investment strategy around your personal risk appetite and financial goals. Regular reviews are essential to keep your financial plan on track and ensure the strategy and investments continue to meet your objectives and reflect any changes to your circumstances. We aim to create lasting ongoing relationships with our clients, developing a successful financial plan backed up by a strong investment strategy.
Five Wealth Ltd is a Chartered Financial Planning and Wealth Management firm based in Central Manchester. We provide independent financial advice to clients throughout the UK, managing assets of c.£660m. Our bespoke financial plans aim to meet the specific needs and circumstances of everyone we work with from business owners to individuals and families. Further information on our services can be found on our website here.
If you would like to discuss our financial planning services in more detail, please get in touch:
Amy Grace – Associate Director and Chartered Financial Planner
Email: amygrace@fivewealth.co.uk
Mobile: 07966 590 849
Your capital is at risk. The value of investments can go down as well as up and you may not get back the full amount you invested. Past performance is not a guide to future performance. Investments should be considered over the longer term and fit in with your overall attitude to risk and financial circumstances.
“A goal without a plan is just a wish” – Antoine de Saint-Exupéry
The blog originally featured in the Manchester Law Society Messenger, February 2023.