More than just financial advisers
At Reeves, it’s fundamental to our approach that we see ourselves as more than just financial advisers but that we build deeper relationships with our clients based on a mutual trust and understanding that is closer to friendship.
Everybody likes to share good news about themselves – it’s a natural and understandable.
But, the other side of that coin is that many of us are much more reluctant to tell others when things aren’t going so well in our lives. There may be feelings of vulnerability, embarrassment or even shame. The natural instinct is to circle the wagons and keep problems within a small circle such as family or friends.
As such, we’re delighted when you contact us with good news, such as a pay rise or windfall and want to pay more money into a pension. But, it’s just as important that you get in touch during the darker times.
"Whatever stress you’re under, you don’t want the added burden of financial worries and we can help find a solution to your problems.''
We recently had a client who we’ll call Tom, who is in his late 50's. Tom rang us to tell us he was suffering from a mental health problem. He was planning to take 12 months off work to deal with this and wanted to take £10,000 out of his pension to replace lost earnings during that time.
This rang some alarm bells as we’d already identified Tom as being financially vulnerable. He didn’t have all the savings or pension to fulfil his retirement plans and this proposed, unplanned withdrawal mean his pension pot would last him an even shorter time.
We discussed this in complete confidence and came up with a bespoke solution for Tom.
First, we established the facts: exactly how long was he going to be out of work? Was it really 12 months, or possibly longer? We had to establish whether the figure of £10,000 was the result of careful and realistic calculation or an impulsive reaction to his situation. We can only act on facts, so we needed to question Tom on this, to establish just what his monthly needs and expenses were and the parameters of the period he was likely to be out of work.
Ultimately, a client’s money is their own and they're free to make their own decisions. But, we believe we have a duty as a friend to ensure first that the client understands that what they think they need may not be the best way to meet their requirements.
The solution we came up with for Tom was, rather than rush into taking a lump sum out of his pension, to make a series of sustainable, regular, smaller tax efficient withdrawals that he would be comfortable with.
Tom’s situation is by no means unusual. Somebody who is well today can be vulnerable tomorrow but we are here to help, we have the knowledge and the experience and have almost certainly dealt with similar problems in the past.
But, in order to help, we need you to get in touch and give us all the facts. Don’t keep it to yourself and make a spur of the moment decision under stress which may damage your long term goals.
Phone a friend.
Names have been changed to protect identities. These articles are for information only and are based on specific client circumstances which may be different to yours. No advice should be conferred from the articles. No action should be taken without independent professional financial advice as any actions on your pension may be irrevocable and have a big impact on your income in retirement.