First, PROTECT THE MONEY you have; second, take steps to GROW IT …
The good news that we are living longer has financial implications. When a woman reaches the age of 65, she can expect to live another 20 years. We could spend up to a quarter of our lives in retirement and we are quite likely to live at least part of this time alone, with sole responsibility for our own financial affairs.
Nowadays, it’s accepted that women take the lead in the majority of financial decisions. It’s also acknowledged that women are natural savers, and a bit risk-averse. Protecting our money comes first, growth second. Men are nearly twice as likely as women to agree that taking a risk when investing is important to achieve investment returns.
As we go through life, we will face a number of key financial moments such as the sale of a family business, inheritance, redundancy or receiving a retirement lump sum. All of these events require a plan. With constantly evolving tax legislation, it is extremely important to get high quality advice and continuously monitor any investment decisions that are made. “Women want and need to be very involved in financial planning,” says Catherine Flavin, Investment Manager at Investec Wealth & Investments, “and that conversation should start early, before any of the key financial moments might even be on the horizon.” Investec believe in “building the house first” in terms of financial structure, then “furnishing it”. “We aim to get a clear understanding of every client’s financial needs,” says Flavin. “We help clients to address a number of questions in relation to their finances: what is the most tax efficient way to take money out of family business? Is there a tax-free element to a redundancy package/will this effect my pension tax-free lump sum? Is there a tax-free element to my inheritance? Knowing the answers to these questions help us put the appropriate structure in place for our clients.” Once the structure is in place, the next step is to create a personalised investment portfolio based on the individual’s willingness and ability to take on risk.
With global interest rates at historically low levels and likely to stay low for a long time, a willingness to take on some level of investment risk is a necessity. Having advisers with scale, depth of investment opportunities and a good regulatory framework is key. “We want a client to be comfortable with the plan we set up for them, to know that whatever happens on the global or national stage, we are there to manage their pension or investment portfolio on a daily basis, understanding their needs and providing solutions to ensure all contingencies are covered – retirement planning, tax planning, succession planning and protection for all eventualities.”
If you would like to explore how Investec Wealth & Investment could assist you and your family, contact them on 01 421 0000.
This article appeared in a previous issue, for more features like this don’t miss our next issue, out Thursday May 4.
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