Typical Plan Content
A Strategic Financial Plan typically contains:-
1. an introduction to the principles and practice of financial planning and wealth management,
2. a detailed list of clients' capital assets and liabilities with a year by year record of their progress in building up their Net Worth,
3. an analysis of their capital, broken down into the various asset classes and risk categories,
4. an analysis of their cash outflows as between different categories of expenditure,
5. an Income Tax computation with a calculation of net spendable income per year, per month and per week,
6. recommendations for legal tax minimisation,
7. lifelong cash flow forecasts on stated assumptions to determine to what extent there is a danger of running out of money (and when) or, if there is no such danger, the extent to which it should be possible to increase personal expenditure and/or gifts to family members or charities,
8. an analysis of clients' investments in terms of asset allocation with commentary on appropriateness of existing product selection,
9. recommendations for realignment of investments with financial objectives,
10. guidance on what to do when property or investment values increase or fall significantly,
11. an analysis of potential Inheritance Tax liabilities, with recommendations for tax minimisation and estate planning,
12. details of existing investments, life assurance and pension plans,
13. details of clients' professional advisers, wills, enduring or lasting powers of attorney and similar data which is helpful not only to clients but also (potentially) to their executors and trustees, and
14. details of the recommendations and actions related to the planned achievement of clients' objectives.
Strategic Financial Plans are tailored to clients' individual circumstances and can be a significant aid to self organisation and financial planning.
The Financial Services Authority does not regulate tax advice