Independent Financial Advice

Over the festive season of 2008 I met with a lady who had invested with me some 18 years ago. She is now age 92; 74 and widowed when she originally asked for my advice. At the time we discussed here priorities, her assets and liabilities and what she expected from her independent financial adviser.

 

An investment “portfolio” was put together for the lady and this included an approach that reduced the amount of tax she would pay on her savings. Portfolio is perhaps a bit grand; it was really just following the principles of sound financial planning. Her need for income was taken into account and it was clear that the income might need to last for a long time as she was still very sharp minded. Inflation was taken into account and so some of the money was invested in a way to give some capital growth too. 

 

Over the years the investments went up and down in value and some changes were made to reflect changing economic circumstances. As expected the requirement for income went up. The client remains in her own home, despite succumbing to failing health. She can stay  in her house, in large part, due to the fact that her investments allowed her to hire help. She has retained (and still does) her independence throughout the 18 years despite medical problems. 

 

I do not claim credit for the investment performance of the investments. Nor do I under-estimate the fact that markets have had a good run over this period. However, the fact that the right strategy was put in place, adjusted when necessary, was the key to the lady retaining her most important asset, her independence.

 

 "If I had just left my money in the bank I would have had to go into a care home years ago"