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Why is it important to have regular financial reviews?

By Amanda Johnson - Topics: Financial Planning, Financial Review, France
This article is published on: 15th March 2019

15.03.19

Finding time in our busy schedules for reviewing our financial position is not always easy; however, here are some reasons why it is worth the effort and considerations in choosing who you should see.

1/ Living in France, it is important to check that you are both tax compliant and tax efficient, through proper use of savings allowances and being up to date on current tax rules.

2/ Using a company that is regulated here in France means that your advice is specifically relevant to France.

3/ Choosing a financial adviser who is also an expatriate means there are no language barriers and you both understand the experience of what it is like to have moved countries.

4/ Personal circumstances can change and regular reviews will make sure your finances are in line with your current needs. For example, you may have recently retired, be experiencing a change in your income or have just become a French resident.

We are all living longer, and it’s not all good news

By Jeremy Ferguson - Topics: Financial Review, Inheritance Tax, Marbella, QROPS, Retirement, Saving, spain
This article is published on: 5th February 2019

05.02.19

When it comes to the way in which we are leading our lives, the world in which we live has changed significantly over not that many years.

Do you remember starting the day off with a bowl of cornflakes smothered in processed sugar and full fat milk, followed by a couple of slices of white processed bread smothered in butter and marmalade (laden with sugar), then washing that down with a couple of cups of strong coffee before we rushed off to work? Then at work the stresses of the day were broken by coffee to keep you going, with a packet of sandwiches and a bag of crisps at lunch time. A sneaky stop off on the way home for a couple of pints for some, then dinner followed by bed. Sound familiar?

Through a combination of increased awareness of the dangers of processed food and sugars, non-stop articles and TV programmes warning us of health issues; people are becoming increasingly health conscious. Add to that the mass of personal trainers and nutritionists out there, and people nowadays are more active and much more aware when it comes to healthy eating and lifestyle.

If you are reading this, you probably made the decision to move to the south of Spain some years ago, and boy, how things have changed as a result. Longer days, constant sunshine, lovely salads, a relaxed life, and probably a lot more time spent outside walking, or for many, playing golf or tennis. Oh yes, and the big one, much less stress!

spectrum ifa retirement

This is all resulting in something that is causing massive issues around the Globe for all sorts of reasons. People are living longer and needing more medical help along the way, because, despite being generally healthier now, older people still have more health issues than younger people. With that comes an ever increasing stress on healthcare systems. The ageing population also means that the ratio between retirees and workers is swinging in a way that means less taxable income is there to help fund the ever increasing medical needs.

So, while it is great we are all living longer, and therefore having a longer and healthier retirement, how much attention are we paying to this fact with regards to financial health? The pension pot and savings pot we hope you have accumulated now has to last for an ever increasing length of time. Have you considered the need for adequate medical insurance before it is too late to be accepted as a client (because you are too old)? Inheritances may be left to you at a much later stage of your life, and when they are, they could also be smaller due to the fact your parents lived so much longer.

In summary, it is really very important to spend time considering all of these factors. How many of us actually look at this in detail, with an honest reality check regarding the years ahead?

One of the things I like to do with my clients is to make sure we look at the big picture, assessing what you have and how long it is likely to last. Should you be putting the brakes on the lifestyle just a bit for that added longevity financially, or are you being too cautious? It is amazing the amount of couples I meet who are being too careful with money. Or have you got it just about right?

What happens if inflation rises or falls, or the money you have invested loses value or, hopefully, makes more than you expected? Oh yes, and what happens to your income when exchange rates move?

It is always said that you cannot buy time, but strangely enough, most clients I meet here in Spain look a lot younger than they actually are, so in my view, they all seem to have managed to do just that, aided probably by all of the things we know are good about living here. So, if by talking we can remove a little more stress by getting all of those financial ducks in a row, then maybe you can cheat the grim reaper for a good many more years to come.

The Importance of having a Local Financial Adviser

By Sue Regan - Topics: Financial Planning, Financial Review, France
This article is published on: 15th June 2018

15.06.18

Moving to another country is one of the biggest decisions that anyone is likely to make, especially to a country where the language is not your native tongue. Most of the expats I meet say that the hardest thing about moving to France is getting to grips with the language, and I include myself in this.

From my own experience I know that lack of fluency is often a cause of frustration, confusion and anxiety, especially when dealing with bureaucracy, medical matters and finance. Fortunately, there are people and businesses out there who can help.

The Spectrum IFA Group are independent financial advisers and our area of expertise covers the provision of regulated advice on the tax-efficient investment of financial assets, pensions and inheritance planning. We are a French company, regulated in France, which means our business activities will not be affected by BREXIT.

As well as being regulated in the county in which he or she is advising a client, a good financial adviser should also have the relevant knowledge of the tax framework of that country and the tax treatment of suitable products in order to give the most appropriate, tax-efficient advice. You probably wouldn’t have sought the advice of a French regulated IFA to manage your UK investments when you lived in the UK so it doesn’t make sense to expect a UK regulated IFA to advise you when living in a different tax jurisdiction to the one in which they are qualified and regulated.

The Process
In this age of online banking, tele-marketing and robo-advice, we believe that the old- fashioned method of a face to face meeting, to discuss your individual circumstances and financial objectives, plays a vital part in establishing the trust between the client and the adviser, and that should be the number one priority.

An initial meeting with a new client can take up to three hours – there’s a lot to discuss, such as:

  • Your personal and family situation
  • Your income – your requirements now and in the future
  • Your pension provision
  • Your inheritance wishes – do you have wills? Are they set up correctly for French residency? Who do you want to inherit?
  • Your property assets
  • Your financial assets – bank deposits, investments, Trust assets, business interests – where are they situated? Are they tax-efficient for French residency?
  • Insurance policies
  • Your state of health and provision for healthcare
  • Your priorities now and in the future
  • Your financial objectives and attitude to risk

By the time we have gone through all the above, and usually swapped a few stories about our lives, both the client and I have a very good idea as to whether we feel comfortable with each other and that we can work well together.
If, after this meeting, I believe that I can help you achieve your objectives, I will go away and put together my thoughts and recommendations in a report to you. We do not charge any fees for meetings, research or preparing reports and making recommendations. We will meet again to discuss, in detail, any recommendations made, and the product charges will be fully explained. If you decide to go ahead with a recommendation and become a client of Spectrum, we will be remunerated by the product provider.
This is just the beginning of the relationship. Things generally change over time, such as pensions and tax legislation, investment performance, physical well-being, family situations, income and capital needs. An important part of my job is to ensure that we meet periodically, at least once a year, to review your circumstances and make sure that your finances are on track to meet your current needs and longer term goals.
If you would like to have a confidential discussion about your financial situation, please contact Sue Regan either by e-mail at sue.regan@spectrum-ifa.com or by telephone on 04 67 24 90 95. The Spectrum IFA Group advisers do not charge any fees directly to clients for their time or for advice given, as can be seen from our Client Charter here

The Emotions of Investing Money

By Susan Worthington - Topics: Financial Planning, Financial Review, Investment Risk, Investments, Mallorca, menorca, spain
This article is published on: 21st February 2018

21.02.18

Most days I count my blessings for having a job that I love doing. There are the odd times when it does get challenging, but when I’m helping clients all day long they are the magic cure. Being an Expat Financial Adviser giving advice on how to invest your money means it’s vital for me to get to know my clients. That involves understanding what their passions and goals are and what their fears and dislikes are too. It’s usually two things that drive investments, fear and greed, and my job is to manage these aspects. I let the experts manage the money and I take care of the emotions.

That’s not to say that I am a psychologist or psychoanalyst, but I did take advice from one while writing this to make sure I express myself as having the best interest of the client and not just voicing my opinion! If a client does not feel comfortable with advice they receive,then it must not be right. Persuading someone to do something is not in your best interest. I may have been guilty of this in the early years of my career when we were put under pressure by our management, however, at The Spectrum IFA Group we are trained differently, and age and experience have taught me that this is not the way to keep a client.

I am an investor myself so understand that the value of your money can and will go down as well as up, yet if I believe in what I recommend I can help clients when the times are unsettling. Having patience and belief in the advice you receive is paramount. If your gut instinct says that you don’t believe any part of what you’ve already done then discuss your concerns with an Adviser.

Emotions connected to your finances can relate to varying issues because each and every one of us is different. Common symptoms are: maybe you can’t sleep, you always worry about money, you are fearful about what might happen to it, you haven’t heard from your Adviser, you’ve never done this type of thing before, what happens to your money when you die, can you lose some or all of it, what if you go back to live in the UK?

When we are younger we are prepared to take more risk with our money, but as we grow older we tend to become more cautious and have concerns about whether the money will see you through. This all needs careful managing and looking after to ensure it does what you want it to.

5 Factors I take into account before making a recommendation are: what income do you have and need to live on, what assets do you own, where do you pay your taxes, what level of risk, if any, are you prepared to take and how long do you wish to plan for.

Another point to consider for living in Menorca is where is you Adviser regulated? This is important because if you have a legal problem it ideally must be dealt with in Spain. We are registered and regulated under the DGS (Correduria de Seguros). Does it work to have someone regulated in the UK when you live under the authorities of Spain? All Spectrum Advisers are regulated in the country they live and work in, they are expected to live locally and within easy reach of their clients.

3 words to say. Reassurance, Reassurance, Reassurance. To know that all is as it’s meant to be will allow you to live your life more peacefully and happily on this beautiful island.
Menorca has a special place in my heart. I used to live and still own a property here on the island and purely demand from work made living in Mallorca more practical. My opportunity now to say thank you to all my friends and clients here who keep me having to come backwards and forwards all the time!

How do you choose a financial adviser?

By Amanda Johnson - Topics: Financial Planning, Financial Review, France
This article is published on: 12th February 2018

12.02.18
Amanda Johnson

Question: Can you offer me any tips in choosing a financial adviser?
When you move to France, you are moving to Country with many different laws and rules to the one you are leaving and this is unlikely to change in the future, so choosing a financial partner which is right for you is very important for your financial peace of mind.

Here are several things I would suggest expatriates consider when looking for a Financial Adviser:

Is the Company regulated in France?
With nothing yet becoming clear on how the UK will be trading with France after Brexit, using a company which is based and regulated in France reduces any need for a sudden change, should regulations change, post Brexit.

Is my adviser able to sit down with me and review my finances on regular basis?
Your Financial Adviser is not just someone to see once and then forget about. As your needs and circumstances change and with different investments growing at varying rates, being able to sit down and review your situation regularly is very important.

What are the costs involved for any appointments, reports or ongoing support?
It is important to know what costs will be involved throughout the life of any arrangement with your Financial Adviser.

How does my adviser get remunerated?
A clear understanding of how your adviser gets paid and a client charter outlining how the relationship is set up helps clarity and ensures you have no surprises down the line.

Can your Adviser offer any references from existing clients?
Being able to speak to existing customers is a great way to measure a Financial Adviser. You can hear first hand, how the process and relationship has worked for someone in the same boat as you?

Does the company own, or do its Directors/Partners have financial interests in the investments being offered, or are they truly independent?
You should be comfortable that your Adviser is not promoting any “own brand products”, without making this clear to you in advance of any commitment. If the company does have its own products be sure that you can view performance, move to another product or change Adviser without additional penalties.

Can I work with this person?
Your Financial Adviser is someone you need to be able to work with. You will likely see them on a regular basis and be comfortable speaking about your future with. In life we sometimes meet people we just cannot seem to warm to, so do not be afraid to seek alternative advice if you find yourself in this scenario.

Whether you want to register for our newsletter, attend one of our road shows or speak to me directly, please call or email me on the contacts below and I will be glad to help you. We do not charge for our financial planning reviews, reports or recommendations.

How often should I have a financial review?

By Amanda Johnson - Topics: Financial Planning, Financial Review, France
This article is published on: 12th January 2018

12.01.18

There are no hard and fast rules regarding the frequency of a financial review. I believe, however, that there are several questions you can ask yourself, which may indicate that now is a good time to review your own situation:

Have my personal circumstances changed since my last review?
This can include firming up on plans for retirement, changes in your family situation, emerging health issues, a change in jobs or an inheritance. Any of these things could change what you need your money to do for you.

Do I know how the investments I hold are performing?
Have you received a recent statement and are you aware of how your investments are performing compared to others? Reviewing your finances can reassure you that you are on track.

Do I know the position of my current private pensions?
There are options available to expats which are not open to British residents. These are not right for everyone and a professionally prepared analysis is required.

The answers to of these questions may indicate that now is a good time to arrange a financial review.

Sitting down with your adviser will enable them to ensure that any investments held are appropriate for your current situation and risk profile and that you are not over exposed in certain areas.

Your adviser can also tell you how your investments are performing against other types of investment available in the market. Couple this with an ability to advise you of any changes in rules and regulations and you can see that a financial review can provide tremendous peace of mind.

Whether you want to register for our newsletter, attend one of our road shows or speak to me directly, please call or email me with the contacts below and I will be glad to help you. We do not charge for our financial planning reviews, reports or recommendations.