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A helping hand: Tom’s story

We are more than just financial advisers

When Tom came to us with an issue we really wanted to help him

Reeves Independent are more than just financial advisers. It’s fundamental to our approach that every client sees us a company that truly cares about looking after its people – both staff and clients. We build deeper relationships with our clients, based on mutual trust and understanding that is closer to friendship.

It’s part of life that people really enjoy talking about successes – and so you should. However, when the chips are down, we are reluctant to tell others due to feelings of shame, embarrassment and vulnerability. It’s natural to keep your feelings closely guarded.

We are delighted when you contact us with good news, such as a pay rise or a windfall and want to pay more money into a pension. However, it’s just as important that you get in touch during the darker times.

''We build deeper relationships with our clients, based on mutual trust and understanding that is closer to friendship.''

We recently had a client called Tom Stevens, who is in his late 50's. Tom is a very well respected client. He rang up 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.

We were deeply saddened to hear that this was the case. It is not nice to see anybody go through such struggles. Furthermore, this rang some alarm bells as we’d already identified Tom as being financially vulnerable. He didn’t have all the savings or funds in his pension to fulfil his retirement plans. This proposed, unplanned withdrawal meant his pension pot would be further dented, reducing how long it would last. 

We discussed this matter in complete confidence with Tom and came up with a bespoke solution for him. 

Firstly, we established the key facts: exactly how long was he going to be out of work? Was it really 12 months or would it possibly be longer? We had to establish whether the figure of £10,000 was the result of careful & realistic calculation or an impulsive reaction to his situation. We can only act on facts, so we needed to make sure Tom had thoroughly considered this. It's hard to think straight when you have other worries on your mind. As a result, it makes it hard to make smart and rational decisions. To act in Tom’s best interests, we needed to establish just what his monthly requirements and expenses were, as well as the parameters of the period he was likely to be out of work.

Sometimes you can make decisions based on emotion - you just need a friend to make it all clear for you

Ultimately, a client’s money is their own and they're free to make their own decisions. However, we believe we have a duty as trusted advisers and friends to ensure that the client understands that what they think they need, might 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 and 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. We have the knowledge, the expertise and the experience to be able to help in any situation. We 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.

Click the button below for a free initial review of your pension situation - with an IFA that truly cares. 

Names have been changed to protect identity. 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.

Reeves Independent’s Technology Portfolio!

Here at Reeves Independent we have just undergone our quarterly review of our Fund Portfolios. Over the next week we will be Blogging about the research the team have undertaken & explain the reasons behind their construction. Firstly we will talk about the Reeves Independent Technology Portfolio.

According to leading fund managers opinions, Technology stocks are set to out perform most equity markets, hence why we have constructed this as a specialist portfolio.

Technology companies are seen to have high profits, good cash flows & cash in the bank. There is demand for their products & services that is likely to continue & it’s considered that these companies can maintain growth even in times of economic uncertainty.

Access to a selection of specialist funds is available through the Reeves Technology Portfolio. This includes the funds managed through Axa Framlington & Henderson (This was our Fund of the Week last month  https://www.reevesifa.com/?p=336) together with a tech tracker fund through Legal & General.

Framlington & Henderson have different feelings about where to invest within the markets. Framlington being very keen on Software & Hardware sectors with over 70% being invested in that sector & Henderson have a more diversified covering of sectors. The Legal & General Tracks an index.

The bulk of the investments within the portfolio are invested with the USA & all 3 funds have ‘Apple’ as the biggest Individual holding.

These funds are for investors looking for higher returns that can afford and are willing to experience higher levels of volatility. Advice should always be sought and this should not be seen as a general recommendation. One should always remember the .com bubble of 10 years ago & tread with caution.

Further details about how to access this portfolio, these funds and the Reeves Independent Wealth management service are available by calling 0191 281 9862 or e-mail info@reevesifa.com NOW for a FREE initial chat!

What is our ‘Risk Assessment’ Process?

Here at Reeves Independent providing our clients with top quality customer service is a priority. When it comes to clients investments it is vital that we work closely with them to ensure they are invested appropriately. Below highlights the steps/questions we go through before investing;

  1. Firstly we would ask you describe your ‘attitude’ towards taking financial risks right now? Is it Balanced, Cautious or Aggressive?
  2. We then attempt to measure your attitude on a scale of 1-10. The reason behind this is to see if this confirms or contradicts you answer to question 1.
  3. Thirdly we assess how ‘strong’ or how ‘weak’ your confidence levels are in the current economic environment.
  4. The next step is to try & match the above to a portfolio of investments ‘carefully’ selected to match both the ‘risk profile of the client’ & the ‘current market expectations’
  5. Having decided on the asset allocation for your portfolio we will then have a detailed look at the investments you’ve chosen to give you the best opportunity to produce returns required for you

This process is followed for all ‘new clients’ & during client’s quarterly reviews!

Undergoing this process regularly has highlighted the following to us as a company;

  1. Clients opinions will change, therefore working with them & making sure they feel comfortable with the investments is imperative
  2. There is a time for the cautious investor to invest more speculatively & for the speculative investor to invest more cautiously
  3. You don’t have to make all your growth at once, many variables should be taken into account before making your decisions

If you would like to speak to someone about the Reeves Independent Portfolio Management Service please contact us NOW for  FREE initial chat  on 0191 281 9862 or e-mail your enquiry to info@reevesifa.com