12 Mar Under One Roof – Why It Can Make Sense to Consolidate Investments
Although not universally the case, a decision to start a family very often coincides with the busiest and most productive period of working life.
And of course, that’s not really surprising. For those who are climbing the corporate ladder, real success – in the form of promotion, a partnership, or a seat on the board – may well be the result of several years of hard work in more junior positions. And the point at which a career takes off often dovetails with the very personal decision to have children. Indeed, the sense of financial security that tends to walk hand in hand with career advancement may well be an important factor in making a decision that “now is the right time.” It can be a similar story for entrepreneurs as they take the journey that leads from “hopeful startup founder” to successful business owner.
This is all good. Aside from the inevitable work/life balance issues, career success removes much of the financial pressure from the inevitably expensive undertaking of raising a family. But financially speaking, there is also a huge amount to think about – not least in terms of investment strategy and, more broadly, wealth management.
Differences in Emphasis
For one thing, priorities change. Every individual is different, but if you compare and contrast the financial concerns and ambitions of a young man or woman just out of university, with someone who is perhaps ten or fifteen years older and experiencing the pleasures and challenges of parenthood for the first time, you’re likely to see some very real differences in emphasis.
For instance, in the absence of family responsibilities, the younger investor might well have a much greater appetite for high return/higher risk investments.
It would be wrong to say that the slightly older and family-focused investor will lose all appetite for risk, but there will be additional factors to consider, not least ensuring that the children are well provided for, whatever lies ahead. So, in addition, with the funds that may be needed for school and university fees, the investor is likely to be looking for wealth solutions that will ensure financial security for the family, regardless of what circumstances lie ahead. These solutions could take the form of insurance/assurance to protect income in the event of death or illness, or a high return but relatively low-risk investment strategy.
In simple terms, you could say that managing wealth and investment choices becomes more complex as the investor is likely to be balancing a range of financial objectives – growth, income, wealth protection – each with different timelines and solutions.
Which brings us back to the opening point, that many of us start families at a time when we are also working incredibly hard. In that respect, the time available to think about wealth management tends to be very limited indeed. That can be less than optimal, both in terms of new investments and also managing and keeping a track on all the elements within an existing portfolio.
Under One Roof
That’s why it makes sense to bring together all – or most – of your investment and money management requirements under one roof.
The simplest way to do this is to find a wealth management firm that will take the time – while also applying the necessary resources and expertise – to fully understand each individual or family and advise on a strategy that will deliver the desired outcomes, based on circumstances and life goals.
But the under-one-roof approach is – or should be – about more than advice. It is also about a coordinated approach to investment.
For instance, The Route – City wealth club offers access to a range of investment opportunities, some of which are exclusive to Members. Equally important, however, The Route takes the time to fully understand the goals of each Member through a twice-yearly review.
Crucially, for those who don’t want to use up valuable time managing a disparate portfolio of unrelated investments, The Route can manage the estate, investment and protection requirements of its Members. The components include bespoke fund management portfolios, syndicated investment opportunities, access to tax-efficient VCT, EIS and SEIS products, financial risk protection, retirement structures and estate planning.
People with busy lives can’t always spend much time thinking about their investments and finances. By bringing everything under one roof, The Route makes investment and financial planning not only easier but also more effective.
To find out more: 020 3141 9040