Have you ever jumped in your car, started the engine, and driven aimlessly without a destination in mind? Chances are, you haven’t. Yet, surprisingly, many people take this approach when it comes to their investment portfolios. These portfolios often involve substantial sums of money that have been diligently accumulated through years of hard work and disciplined saving. Without a clear objective or understanding of what you are trying to achieve, it becomes challenging to find meaning in your money. When asking “What are you trying to achieve?”, common answers from clients include “growth”, “income”, or even “outperformance”. As financial planners, it is our responsibility to reframe the question and shift the focus towards aspirations, goals, dreams, beliefs, and visions.
Traditionally, financial planners have prioritised money over their clients’ genuine fears and pressing questions. We believe it is crucial to address concerns like “How can I ensure I never run out of money?”, “How much do I need to earn or save to be able to achieve my life goals?”, “When can I afford to free myself from burdensome obligations and start doing things I really enjoy?”, “How can I secure my family’s financial security in any circumstance?”, and, perhaps the most significant question of all, “How much is enough?”.
Our role as financial planners is to assist clients in attaining and maintaining the life they want. We aim to inspire them to pursue their passions and enjoy the things they want to do while they still have the time to do so. People don’t really want financial products or investments—they seek peace of mind, security, and a clear financial direction to be able to secure their desired lifestyle.
How much do you need to retire and more…
How much income do you need to be comfortable, how much do you need invested and how to pay less tax...
Lifestyle looks different for everyone, whether it is large scale or entails a more modest approach. Some have a lifestyle that includes gifting to charitable causes or leaving behind a legacy after they die. Ultimately, it all comes down to lifestyle. A big lifestyle requires a big number, while a smaller lifestyle requires a smaller one. Therefore, our job is to help clients understand their “number” – the amount needed to sustain their desired lifestyle. With proper financial planning, we can guide them in accumulating, managing, protecting, and, most importantly, enjoying their wealth.
One effective method for determining an individual’s financial requirements is the use of cash flow modelling. By projecting an individual’s assets, income, and expenditures into the future, we can paint a picture of their financial journey. From a financial planning perspective, cash flow modelling presents an individual’s present financial situation in a graphical form and illustrates how it may unfold in the years to come. Find out more about cash flow planning in this article [1].
Once we establish the current financial situation, we can compare it against the stated goals and objectives. Generally, people fall into three categories: the “Haven’t got enough,” the “Got too much,” and the “Got just the right amount – but I don’t know it.” Attempting to provide financial planning advice without cash flow modelling is akin to guesswork. Only after undergoing comprehensive financial planning and cash flow modelling can we delve into the topic of investments.
An investment portfolio serves as a tool or medium through which individuals endeavour to achieve their financial planning and lifestyle objectives. The “Not enough” group will either need to invest more or take more risk, the “Too much” may be able to reduce risk on their portfolio and spend more or give assets away to avoid inheritance tax. The “Just right” need to become aware of their situation to be able to enjoy some peace of mind.
Our clients may wish to consider combining the expertise of a financial planner with that of an investment manager. When these skills are mixed together, the results can be both powerful and life changing.
On your journey towards financial security and fulfilment, it is essential to avoid aimlessly driving without a destination in mind. Instead, adopt a purpose-driven approach to your investment portfolio. By defining your aspirations, goals, and dreams, you can find meaning and direction in your financial decisions. Here at Saltus, clients have access to both highly qualified financial planners and an award winning investment management team, ensuring that we can carefully map out the journey and help you to arrive at your destination safely and on time.
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All authors have considerable industry expertise and specific knowledge on any given topic. All pieces are reviewed by an additional qualified financial specialist to ensure objectivity and accuracy to the best of our ability. All reviewer’s qualifications are from leading industry bodies. Where possible we use primary sources to support our work. These can include white papers, government sources and data, original reports and interviews or articles from other industry experts. We also reference research from other reputable financial planning and investment management firms where appropriate.
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Book a reviewSaltus Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority. Information is correct to the best of our understanding as at the date of publication. Nothing within this content is intended as, or can be relied upon, as financial advice. Capital is at risk. You may get back less than you invested. Tax rules may change and the value of tax reliefs depends on your individual circumstances.
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Financial planning
Financial planning can help you reach your goals in life, whether you want to determine when you can retire comfortably, bring organisation to your financial world or pass on your wealth effectively.
Pensions and retirement planning
Deciding when to retire is a challenging decision and can feel like a leap of faith. At Saltus, we gather information on all of your existing assets and then use our technology and expertise to show you exactly how to achieve the retirement you’re after.
Reducing your tax burden
How to structure your wealth and access income should be approached in a sophisticated way. A detailed financial plan may use pensions, ISAs, general investment accounts, offshore bonds and other tax wrappers to ensure you can draw your money in a tax-efficient manner.
Consolidating your wealth
Holding multiple investment accounts and pensions can mean they’re hard to keep track of and administer. We’ll help you overcome this by consolidating your accounts into a single plan so that you can understand your financial position with ease.
Protecting you and your assets
We protect our cars and houses without much thought yet you might be the most valuable asset in your family. Whatever your situation, we can provide advice to ensure you have the right level of insurance in place to keep your finances protected.
Passing on your wealth
Estate planning is more important than just having a Will. We’ll work closely with you to understand how estate planning, which has emotional as well as financial consequences, can impact your overall financial plan.
Significant life events
Significant life events can present great opportunities but also considerable challenges. Whether you are going through a business sale, divorce or are receiving a lump sum, we’ll help build a financial plan to meet your changing lifestyle.
