Investing for long-term income

investing for a long-term income

I’ve four similar cases on the go at the moment, all at different stages, all investing for long-term income.

Drs H invested for income two years ago, when he retired.  Our second annual review will be on Friday.  I’ve begun preparing for that, with a performance review of all the funds and holdings within the funds.  Their brief was a sustainable income, with a long retirement in mind, so plenty of scope for the income to rise to keep pace with inflation. (Although, they haven’t started spending the income yet.  Maybe this time?)

Mr & Mrs S are new clients.  They’ve recieved a lump sum from an injury settlement, so it’s not a cheerful time.  They need a modest income, from a portfolio that can cope with changes in their objectives.  We’re at the begining of the planning process.

A different Mr & Mrs S need more income, so we need to change their investment brief.  They want a high level of income now, but with limited scope for protection from inflation.

Finally, Mr & Mrs M retired five years ago, but have been managing without an income from their investments.  Their children would rather that Mum & Dad enjoy the money, instead of struggling without it.  So, we’ve agreed to chase a useful level of income now, with some scope for protection from inflation.

Four customers, similar ages, similar wealth levels, and broadly similar objectives.  But there are some crucial differences, aren’t there?  They’re the bits I enjoy coming to work for!

Here's a little more information about our team:

Q: Qualifications Include

A: My degree in modern languages included a module on economics and personal finance, and that's how I got into financial planning.

Since then, I've become dual qualified as both a Certified Financial Planner and a Chartered Financial Planner, including the specialist qualifications in Tax & Trusts (G10) and Pensions (AF3/G60).

The full list is:

AF3 - Pensions (CII) (I did that to totally update my pension knowledge, as I had done G60 in 1994.)
K10 - Retirement Options (CII)
K20 - Pensions Investment Options (CII)
G20 - Personal Investment Planning (CII)
Chartered Financial Planner (CII)
ER1 - Equity Release (CII)
HR1 - Home Reversion Plans (CII)
G10 - Taxation and Trusts (CII)
CFP - Certified Financial Planner Licence (IFP)
H15 - Supervision and Sales (CII) 

In November 2016 I added the STEP (Society of Trust and Estate Practicioners) Certificate for Financial Services.

Q: Do your clients have anything in common with each other?

A: They are all lovely and there are a few similarities in their aims that I've noticed. 

Many of my clients want to do more than just meet their own needs. They also see themselves as custodians of their money for the next generation or for other beneficiaries. 

In other cases, their aim is to manage their wealth efficiently during their lifetime, with the aim of spending it all… but minimising tax on the way there.

Q: What type of work do you enjoy most?

A: I do get a real sense of satisfaction from the work with those clients who engage me to manage the needs of two generations of the same time. That can be 'just' a long-term and balanced investment strategy or it can be trust planning and estate planning to avoid paying too much Inheritance Tax.

Q: Where would you be right now if you weren't at work?

A: In the Lakes

Q: In the film of your life, who would play you?

A: In my head, it's Uma Thurman, but I expect they would approach 'Nursey' from Blackadder II.

Q: Curry or Hot Pot?

A: Agh, too difficult. Curry.

Q: Sherbert or Chocolate?

A: Chocolate

Q: Lawn or Flowers?

A: Lawn

Q: What are you most likely to do whilst being 'on hold'?

A: Infuriate my colleagues by opening conversations then cutting off their reply when my call is answered.