FutureCertainty
Changing the world, one plan at a time...
Financial
planning
Financial planners have always consulted with their clients concerning their goals, typically from the point of view of money goals rather than life goals, but all too often the emphasis is placed on the product rather than the person.
Our approach to financial planning is different in that is really better described as “life planning with money.” We each have a collection of ideas or beliefs about money: what it is, how it works and how to relate to it. But, without a vision for a meaningful life, we may default to using money to acquire the outer trappings of a happy and worthwhile life whilst ignoring the truth that a life worth living is a feeling that comes from within.
For us, planning is like a journey. Imagine we were to travel across a body of water. If the voyage was across a lake with no wind and tide to take into account; no shoals to run aground on, the outcome would be predictable - we should reach our destination simply by holding a straight course.
However, if our journey was, say from Southampton to Cowes on the Isle of Wight, our short journey could be fraught with variations in wind and tide, hidden sandbanks and rocks, with many other vessels to avoid. Reaching our destination would require many adjustments to our course along the way.
Planning not budgeting: Knowing where your money goes on a monthly basis is important information, but we do not burden you with the requirement to provide detailed breakdowns of your expenditure on cat food and cable tv, instead we create a plan that inspires you to work on the goals that motivate you.
Assumes minimum risk: A typical financial plan attempts to identify your capacity for investment risk - but then position you to experience the maximum pain you can bear - whether or not your plan requires it. Our process uses risk/return within the overall blend of factors to produce a a plan you can live with.
Central to our planning process, therefore, is the confidence calculation which simultaneously evaluates your goals, your investment allocation and your assets to determine how confident you can be that your goals will be met. By subjecting your plan to a sophisticated ‘stress testing’ process we can simulate 1000 lifetimes where the markets can be both good and bad. From this, we can determine your confidence level – i.e. how many of the 1000 simulations resulted in you achieving your goals. For example, if you achieved all of your goals or more in 830 of 1000 tests, your confidence is 83%.
Monitoring: Ongoing monitoring is the part of the process that ensures your course is constantly corrected to adjust for changes in your circumstances, goals or market conditions.
For more information about financial planning and to arrange an initial interview contact us or call David Jones on 0208 744 1888.
Financial planners have always consulted with their clients concerning their goals, typically from the point of view of money goals rather than life goals, but all too often the emphasis is placed on the product rather than the person.
Our approach to financial planning is different in that is really better described as “life planning with money.” We each have a collection of ideas or beliefs about money: what it is, how it works and how to relate to it. But, without a vision for a meaningful life, we may default to using money to acquire the outer trappings of a happy and worthwhile life whilst ignoring the truth that a life worth living is a feeling that comes from within.
For us, planning is like a journey. Imagine we were to travel across a body of water. If the voyage was across a lake with no wind and tide to take into account; no shoals to run aground on, the outcome would be predictable - we should reach our destination simply by holding a straight course.
However, if our journey was, say from Southampton to Cowes on the Isle of Wight, our short journey could be fraught with variations in wind and tide, hidden sandbanks and rocks, with many other vessels to avoid. Reaching our destination would require many adjustments to our course along the way.
Planning not budgeting: Knowing where your money goes on a monthly basis is important information, but we do not burden you with the requirement to provide detailed breakdowns of your expenditure on cat food and cable tv, instead we create a plan that inspires you to work on the goals that motivate you.
Assumes minimum risk: A typical financial plan attempts to identify your capacity for investment risk - but then position you to experience the maximum pain you can bear - whether or not your plan requires it. Our process uses risk/return within the overall blend of factors to produce a a plan you can live with.
Central to our planning process, therefore, is the confidence calculation which simultaneously evaluates your goals, your investment allocation and your assets to determine how confident you can be that your goals will be met. By subjecting your plan to a sophisticated ‘stress testing’ process we can simulate 1000 lifetimes where the markets can be both good and bad. From this, we can determine your confidence level – i.e. how many of the 1000 simulations resulted in you achieving your goals. For example, if you achieved all of your goals or more in 830 of 1000 tests, your confidence is 83%.
Monitoring: Ongoing monitoring is the part of the process that ensures your course is constantly corrected to adjust for changes in your circumstances, goals or market conditions.
For more information about financial planning and to arrange an initial interview contact us or call David Jones on 0208 744 1888.