FINANCIAL PLANNING

Financial Planning

Financial Planning

Introduction

I thank you for the financial planning appointments so far. These appointments and your cooperation enabled me to complete the factsheet regarding your financial planning appraisal. The information on this document has allowed me to formulate some recommendations based on your financial objectives, your present financial position, affordability and attitude to risk.

This document should be retained in your filing system and should be kept with our client agreement, costs of services document, key features documents for the individual recommendations and my business card. Please contact me if you feel that any of your details are incorrect. I have explained to you the different methods that could be used for remuneration for the independent advice I am giving. You have agreed that you would like to pay by commission for the initial advice and by fee for the ongoing reviews.

Current Position

I would first like to begin with a synopsis of your current situation:-

Ken you are 61 yrs of age and you are married to Margaret who is 59 yrs of age. You have 2 financially independent children, James Smith your eldest at 38, and your Heather Smith who is 35 yrs of age.

Ken you are a self employed gardener and have consistently earned net profits of £16,000 over the past six years, all of which were subsequently withdrawn. You contacted out from your last service in 2005 having your final salary to the extent of £52,000, without opting for pensions at an accrual rate of 1/60th a month.

Margaret you are employed as a Secretary for the past 30 years, and you are paid £14,000 per annum making you a basic rate tax payer.

Ken you are about to receive £350,000 from the sale of your house, after which you intend to live with your spouse in her house

Ken you have £80,000 in investment trust (that you bought for £45000 years ago) and your spouse Margaret has £92,000 in Unit Trust.

None of you have investments in Individual Savings Account for the present year, Ken, however, has £50000 in ISA, as shown in his statement of assets

Both of you own a home with Ken's home worth £350,000, and Margaret's home worth £600,000. Upon the sale of Ken's home, you expect to reduce your expenditures

Ken and Margaret you have a will in place which leaves your estate on death to your partner and then to the children.

Ethical Investments

Ethical investors need to avert investments in companies that deal in tobacco, arms, wood logging, animal experiments, atomic power, gaming, and porn works, or in formations that affirm repressive regimes, or the ones that produce goods using factories in less-developed nations (Brigham & Houston 1998 35). Evenly, ethical investments (often called socially responsible investments, or the SRIs) is investing in firms that involve in positives, letting in substitute or fossil fuels, such as wind farms, and recycling and waste management. SRIs also include investing in firms at the cutting edge of dependable employment practice and those providing high-quality services ...