FORWARD

FINANCIAL PLANNING LTD

About Us

Established in 1983 by David Jebb ACII Chartered Financial Planner. Directly authorised by FCA. Have designed the Forward Financial Planning process.

What is the Forward Financial Planning process?

Think of how an accountant prepares a set of accounts . He records the figures and presents a set of accounts which let the company owners know how much they have made, how much tax is due and what their company is worth.The forward financial plan is almost a mirror image of what the accountant does. We look at what you are now worth, your assets, investments and liabilities, we start working on our buy sell advice and we present an outcome of our advice as your initial "forward accounts" (including estimated taxes due) -which after fine tuning our buy sell advice as we agree your objectives will become your forward financial plan.

Why is a forward financial plan important?

Some people know exactly where they want to get to, others do not, most are somewhere in between. In building your plan we help you to understand what is possible. It may take a number of years for you to fine tune your goals, and your objectives may well change

False Hope

What is False hope? Think of an aeroplane pilot plotting a course from Dublin to New-York. He takes off and then goes to sleep leaving the plane on auto-pilot! That is false hope!  Clearly if a storm blows the aeroplane "off course" the pilot needs to take action and re-calculate the flight plan.

Four things we do to reduce the possibility of  False Hope

  1. We recommend that you look on your forward financial plan as a plan for life that we review with you every year. If you decide you do not wish to attend your review on the date held for you, we change your status from being an advised client to an unadvised client, and to be fair your montly retainer is reduced -that way everybody is clear that financial advice is no longer being provided. Refer above to the pilot on auto pilot in a storm!
  2. We use a simple definition of risk so you understand and are in control. Every investment is classified as "insured"  or "not insured".The more that is "uninsuerd" the greater potential for growth- but also for potential loss.The ratio between what you have "insured" and "not insured" is a manifestation of your attitude to risk, ie the more you have "not insured"  the higher your attitude to risk. We will show you various possible outcomes based on the attitude to risk you have said you are prepared to take. After you have selected your attitude to risk we take responsibility to test your  capacity for financial loss. If we think your attitude to risk should be lower or higher, we will tell you and if you do not take our advice this will be noted in your plan- everybody is clear.
  3. We do not ask others to research our investment managers. Over many years we have built a pannel, normally  around 12 world class managers, mainly through tested specialist financial companies called investment trusts.We remain open-minded and may add a manager or remove a manager if we feel a change in circumstances necessitates, and we guarantee never for personal financial incentives.We never accept commission. We really know our managers and so have a high level of confidence in our recommended portfolios.Due to our conviction based fund manager selections, the care we take to make sure you understand the attitude to risk manifested by your portfolio and our testing of your capacity for loss we believe that even if there is a market downturn you can have the peace of mind that providing you remain invested your portfolio is likely to provide long term growth. Obviously future growth cannot be guaranteed, and by investing in uninsured funds you may receive back less than you invested. 
  4. Keeping our manager selection "inhouse" allows us as much as possible to avoid investing your money in relatively new products called exchange traded funds which we believe are an "accident waiting to happen" The problem is that they are a type of investment trust  (a product designed for long term investors) which are being marketed as an easily accessed investment suitable for short term investment! Due to the product construction if too many people  wanted to sell the price could quickly drop very steeply causing the fund to be frozen.(I have read reports in the Financial Times that this has allready happened.) When I was studying for my qualifications I was taught this is "mis-matching." The product is unsuitable for short term trading. If we find a manager we have recommended has started investing in this area we would place his fund on our "sell" list and recommend you sold. Our process also allows us to avoid "structured products."These are normally constructed to give a return on a specific future date.The return will be dependant on the performance of a specific "index" however in the "small print"  if the indexes underperform by an amount which the contract will specify you do not get all your money back, but you do not have the option to wait until markets recover- so are forced into a loss.
  5. We also do not offer mortgages or re-mortgages (equity release)    

If  the client wants time to reflect he or she can first become a "pre-advice"   client. They will receive monthly topical financial news updates, a comprehensive budget update (November), Spring update (March) and 24/7 access to our comprehensive library which is regularly updated.  All this is only £50 per annum; sign up now at  www.my-money.me

If you are ready to come onboard as an advised client we require an initial "survey fee" of £395 to cover building a "snapshot" of  your current initial financial position. If there are managers in your portfolio you wish to retain which are not on our panel we may need to carry out due diligenge, read prospectus, check accounts and fund manager reports so may make a further charge depending on what we need to do to be satisfied that we can confirm your manager is appropriate. We will agree any charge in advance. The charge in any event will never be more than 3% of the investment value. You may decide you are happy to use our managers which may be  a solution we will agree to, providing we are satisfied your existing manager is not imposing penal exit charges, and that you will not incur any tax charges.

We charge an ongoing retainer of £150 per month for a mediation periods of 12 months.We mediate on your behalf with the financial institutions. At the end of the mediation period we invoice 0.96% of funds under our influence less the retainer.

Example (1)Funds £180,000 £150 per month = £1,800, nothing nothing further to pay us.

Example (ii) Funds at start of year £900,000. Funds at end of year £1,000,000. Including your monthly fee of £150 your total payment to us at the end of the mediation period is  £9,600 Your invoice will show £9,600 - retainer £1,800 balance due £7800. The mediation of Buying and selling of investments is not liable to VAT.   Please see to left "Your costs estimate/client agreement," this is an online tool to help you obtain an estimate of both our charges, custodian charges, and manager charges.

The Forward Financial planning process aims to review your goals / financial position each year , compare your financial position with the previous year make buy/sell recommendations and update your forward financial plan  detailing changes and reasons for advice.

At the end of each mediation period we invite you to an advice meeting to start a further mediation year.As explained above you can switch to unadvised/non advised. If you choose to become unadvised you will not receive advice until you again ask to become advised. You will continue to benefit from any online valuation services we have set up for you, and annual statements. You will be free to provide investment instructions which we will execute on a non advised basis, ie we will not comment if we think what you are doing is unsuitable . Charge £50 per month plus £40 per execution instruction.

 

We are RESTRICTED ADVISERS (refer notes 3,4,5 above) directly regulated by FCA

Our offices are in a private estate yet within the town boundary of Newtownards, access via Golden Glen Road.All advice meetings are by prior appointment 02891826767 – normal office hours for admin support 9-1 2-5 Monday to Thursday.

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