Every Step of the Journey Covered.
We are with you, for the long haul.
Retirement isn’t a single, self-contained event. At Reeves, we’ve long recognised that it’s more a process and we’ve developed an approach to help guide our clients along every step of their journey.
Every client is different and we deal with everyone as an individual according to their circumstances, but there are four stages which tend to be common to everybody.
First, the client journey begins with an initial meeting where we get to know you and gain a thorough understanding of your circumstances and your aims. This is often a matter of helping a client clarify for themselves, for the first time, exactly what their long-term ambitions are. This first step is crucial to avoid the danger of drifting into retirement with no clear plan and no provision to achieve a plan.
It’s surprising how often at this stage that people find they can do more than they anticipated or earlier than they’d hoped.
Thereafter, it’s a question of managing the client’s retirement fund, ensuring that their investments grow as much as possible, while being secure. Our investment board meets monthly to review our investment strategy in the light of market conditions and, if as a result of that, we think any changes are necessary we contact you for your consent. In 2018, the Reeves portfolio outperformed the FTSE 100 by about 5%.
We have a range of portfolios which are appropriate for different clients, depending on their attitude to risk and how frequently they want to make investment decisions and adjustments. At the end of every tax year we can advise clients on using their tax allowances to maximise the benefit to their portfolio. Every client has a personal account manager whom they can contact at any time.
Third, we advise our clients when it comes to making those key retirement decisions. What income will I need, net of tax, to maintain a comfortable lifestyle? How soon can I afford to give up working? Can I ease myself into retirement by cutting down on my hours? Should I move into a smaller – or even, perhaps, a bigger - house in my retirement?
Finally, once a client has made the necessary decisions and has retired, we continue, through regular reviews and discussions, to ensure that their retirement fund is secure and preserving as much of its value as possible and that those retirement plans remain on track.
Take the example of one client: Simon McAloan. Simon, who was in his late 50s, had worked in well paid jobs for most of his life for a number of employers. He had considerable cash savings and multiple pensions in several funds. These pensions had little diversification and were not suited to his attitude to risk.
After talking to us, Simon became a client and we combined his pensions in our Balanced Tactical portfolio which was better suited to his risk tolerance level.
Thereafter, Simon, was given constant reviews on how his investments were performing and we constantly monitored the portfolio to make investment changes to generate better performance and pension growth than he would have received otherwise.
From when we first met him, Simon was thinking about reducing his hours of work. His hobby was carpentry and he had long dreamed of setting up a small business to do this on a professional basis, while continuing to work as an employee. There was a risk that the new business wouldn’t succeed and he needed the reassurance that his pension savings could make up for his reduced hours of employment. It was also possible that his employer wouldn’t agree to part time working, so, again, he needed to know that he could rely on his pension fund,
We advised Simon to build up his pension pot by making annual contributions from his cash savings, up to his £40,000 annual allowance, taking advantage of the tax benefits.
The result of this was, that by the time Simon was 62, he was in a position to fulfil his ambitions. His retirement fund had grown to a sufficient size to allow him to realise his ambitions; he set up his business and went onto a three-day week.
Now, although Simon is only in partial retirement, we review his income management to save on his tax bill. We have moved funds to a short-term portfolio to safeguard three years’ worth of income and we conduct regular six-monthly reviews and retirement planning session with him. We have also produced and managed his ‘death plan’ which includes wills and estate and IHT planning.
Retirement is not something that can or should be done overnight. It’s too important for that. It’s a long and complicated business, which has to be planned for, carefully managed and then it has to be recognised that it’s an ongoing process. At Reeves, we are experts in this.
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These articles are for information only. These articles are based on specific clients and their situation may be different from 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.