5 Tips for Money Success
As featured in the December/January issue of the Winchester Resident magazine
What is the difference between Wealth Manager, IFA and Financial Planner?
I’d say that wealth management tends to focus more on investments whereas financial planning emphasises the bigger picture such as funding and protecting lifestyle choices.
I’m unusual in being both a Chartered Wealth Manager, and a Chartered Financial Planner, and in order to provide financial advice, I’m registered with the FCA as an Independent Financial Adviser.
What kind of clients do you work with?
Usually they are dependent on their own wealth to maintain their lifestyles, as most do not have generous final salary pensions.
In the 1990s I worked for a firm of accountants in the City of London so my clients tended to be high net-worth SME business owners and that has continued since we started Collingbourne 15 years ago.
We are proud that no client has ever chosen to leave us (except one who transferred to his son’s own hedge fund and recently came back to us!).
What are the biggest challenges your clients face?
Knowing how much they need to achieve financial independence. Later on, balancing their desire to help the next generation (or two) with their own financial security and protecting their lifestyles.
What are the most important money management lessons that you would like to share?
# 5. Be mindful about your spending.
If you could see a chart of your spending by category for the last few years, how likely is it that you would reallocate some of that if you had that time again? A spending plan is more than a budget, it’s about defining your ideal lifestyle, within your present (and future) means.
# 4 More money is not a solution to a money management problem.
Lack of money buys misery but more money doesn’t buy happiness, not the sort that lasts anyway. Trust me, I’ve seen plenty of both. Good habits come and go, bad ones accumulate!
# 3 Diversify
If you’re in the property business, don’t invest all your savings in property. Your inside knowledge may give you an edge, but it won’t help if there’s a system wide crash that hits your business as well as your investments. If you’re a stockbroker, don’t invest too much in shares. If you are neither of those remember diversification is the nearest thing to a free lunch.
# 2 Stay disciplined
Assuming you have a well thought out, plan (see # 1 below), stick with it and trust the process. The time to worry about whether the keel is attached to your boat is before you leave harbour.
#1 Start with why
Question your assumptions. Sometimes we need to step away from the demanding and noisy world we inhabit in order to reassess what is important to us- have some sort of clarity break. Then build a financial plan to help you live it.
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