Our conversations with clients have taken a more philosophical bent in recent weeks as users ponder investment and institutional styles along with what they can do to tackle IHT.
Users are plagued by Inheritance Tax uncertainty
Inheritance Tax (IHT) has become a real political football lately, with the Conservative government said to be considering scrapping this hated levy in order to boost their General Election prospects and Labour pledging that they would immediately undo such a move if they came to power. Little wonder then that our users are getting really confused about what they should do to reduce their exposure.
There are currently numerous strategies which High Net Worth Individuals can pursue to reduce (or even eliminate) the IHT bills their families will face when they pass away – such that some even call this a ‘voluntary tax’. Yet with a Labour government widely expected from the second half of 2024, it remains to be seen how many of these will remain viable in the years ahead. Aggressive raids on what some regard as ‘unfair’ hereditary wealth could feasibly become a real feature of the wealth landscape.
Inheritance Tax (IHT) has become a real political football lately, with the Conservative government said to be considering scrapping this hated levy in order to boost their General Election prospects and Labour pledging that they would immediately undo such a move if they came to power
We would advise responsiveness rather than worry is the key here. You may not be able to predict the future, but you can ensure that you have a specialist adviser in your corner who can make the necessary changes to your strategy as quickly (and frequently) as required.
Investors are getting philosophical
There is no doubt that 2024 is going to be a hugely consequential year, with elections due in the US and UK, multiple wars ongoing and geopolitical tensions continuing to rise. At the same time, seismic technological and sociological changes are rocking multiple industries from pharmaceuticals to automotives. It’s hard to know where things will stand even a year from now.
Against this backdrop, we’re having some deeply philosophical questions with our users about their portfolio strategies. Some have very clear views on where things are heading and wish to talk to wealth managers about high-conviction investment strategies. Others are taking a more circumspect approach and want to diversify to the maximum as a buffer against uncertainty.
We would always recommend a judicious degree of diversification of course, but there is also scope to make serious directional calls for at least a proportion of your portfolio. Dividing your investments into different ‘pots’ might be something to consider if you are prepared to take more risk with some of your wealth yet need to keep some safer reserves as well. We can set up conversations with leading advisers about how to do this fast and free.
Top Tip
Having been a currencies trader at a big bank, I personally feel confident in making high-conviction investment calls with significant sums. However, I appreciate that some people want to take a more conservative and broadly diversified approach, at least with the lion’s share of their wealth. There is a lot to be said on both sides.
The key thing is to match your convictions to both your financial and emotional needs. Some enjoy seeing big bets play out, while for others this would be far too much worry. A good wealth manager will help ensure that your returns and your psychological comfort are maximised through extensive risk-profiling and a holistic view of your finances. Let us help you find just such a quality adviser.
Lee Goggin
Co-Founder
Clients are considering size more and more
Another philosophical question which is increasingly coming up in our conversations with potential wealth manager clients is ‘Does size matter?’ This is a really important consideration which we will soon publish a more fulsome discussion of in response.
For now, we would urge those considering their first or a new wealth manager relationship to keep an open mind. Some people get real reassurance from a very well-known and perhaps global brand, while for others a regional or even boutique firm gives them confidence that their unique needs will be well met by a bespoke service. Then there are factors like service breadth, research coverage and even the size of credit line a wealth manager is able to offer (institutions attached to a bank might appeal here if you seek facilities like a Lombard loan).
Our raison d’etre as a service is that wealth management is an incredibly broad church in the UK, encompassing scores of very different but equally good institutions. Objectively filtering the market so that you can compare similar service packages from divergent firms easily is what we do; you just need to give us a handful of relevant details to start your search.
Make a truly informed choice
It is easier to change wealth manager than you might think. That being said, the best results tend to come from enduring relationships which last many years and this makes it worth investing the time to find the right adviser and institution for your profile and needs.
Wealth management is an incredibly broad church in the UK, encompassing scores of very different but equally good institutions. Objectively filtering the market so that you can compare similar service packages from divergent firms easily is what we do
The good news is that through our service, this time investment can be minimal. Our factual matching service is overlaid with our team’s intimate knowledge of the institutions on the findaWEALTHMANAGER.com panel, meaning that the shortlists we present to our users typically ends the search at a stroke. Save yourself time – and stress – by joining the thousands of individuals who have found their ideal match through us.
Important information
The investment strategy and financial planning explanations of this piece are for informational purposes only, may represent only one view, and are not intended in any way as financial or investment advice. Any comment on specific securities should not be interpreted as investment research or advice, solicitation or recommendations to buy or sell a particular security.
We always advise consultation with a professional before making any investment and financial planning decisions.
Always remember that investing involves risk and the value of investments may fall as well as rise. Past performance should not be seen as a guarantee of future returns.
