Goal-based, outcomes-driven investment...
Every Fowler Drew client has one or more portfolios, each designed uniquely to deliver specific quantified outcomes, as defined by the client, for a particular purpose, in a planning process.
Goals can take any form and at any stage of life.
Goal-based Financial Planning
In goal-based management, every investment solution relies on holistic, lifetime financial planning. This initial collaborative phase, which precedes any
portfolio management, covers all aspects of your life involving money and all aspects of your money: borrowings, liquidity, investments, pensions, insurance, tax, trusts.
For most clients, maximising outcomes means maximizing after-tax outcomes. That makes the tax efficiency of our investment decisions and account structures an important part of the value we deliver to clients.
In a holistic view of how risk for an individual or household is managed, whether they choose to bear or insure liabilities and risks that can be insured should not be separated from their approach to investment risk. It is all part of our service.
If you are already juggling the typical time pressures of career and family, the competing claims on your pockets of spending and savings can feel like a whole lot more juggling. Goal planning at this stage can provide two valuable outputs; as motivational device for the sacrifices involved in wealth building and why you should take risk.
Conventional, standardised portfolio management relies on fitting all individual purposes and time horizons into one of a group of portfolio models differentiated by levels of volatility or ‘path risk’. Outcomes-driven investing customises every portfolio to its own purpose and its one or many time horizons, with risk defined by uncertainty of outcome at the time horizon, rather than volatility.
In goal-based planning, funding retirement spending is typically a goal that competes for resources with other goals and so has to be planned holistically. Successive reforms to pension legislation reinforce the need to plan and manage holistically. The spending outcomes are about money. What kind of account the money should sit in is about tax.
Young people potentially face more financial challenges than people at later life stages. The range of potential uses for money is wider and so is the range of time horizons they imply. You might want to fund a period of retraining now on the basis this will increase your lifetime earnings.
Planning in the latter part of your working life is typically dominated by what you did or didn't do to provide for your retirement. Unless you are fortunate to be able to rely on a generous final-salary pension (which itself now poses some questions about whether to transfer out), you face one of the most challenging management tasks of your life: