A Bespoke Wealth Management Service for Senior Executives presented - - PowerPoint PPT Presentation

A Bespoke Wealth Management Service for Senior Executives presented by Germain Financial Associates

Partner Practice of St. James’s Place Wealth Management

www.germainfinancial.co.uk/seniorexecs

Initial Proposal

• Introducing Michelle Germain and Stephen Germain
• Introducing St. James’s Place Wealth Management
• Introducing Germain Financial Associates
• Our Wealth Management Services
• What makes us different?
• A bespoke service for Senior Executives
• Next Steps and contact details

Introducing Michelle Germain, DipPFS

Pensions, Business & Retirement Planning Expert Principal of Germain Financial Associates which is a Partner Practice of St. James’s Place Wealth Management

• Michelle is a highly experienced wealth adviser
• Specialist in Retirement Planning, including Drawdown, for
• ver 15 years
• Holds Advanced Qualifications in Pensions and Retirement

Options

• Builds long-term client relationships

Introducing Stephen Germain

Tax, Trust and Estate Planning Expert Principal of Germain Financial Associates which is a Partner Practice of St. James’s Place Wealth Management

• Stephen has worked in financial services for over 25 years
• Has extensive knowledge of the Income Tax regimes faced

by High Earners

• Specialises in helping clients to protect and grow their

wealth through economic cycles, whilst minimising their tax liabilities

Introducing St. James’s Place Wealth Management

• St. James’s Place is a leading Wealth Management company
• An award-winning, FTSE-250 Company
• Founded by Lord Jacob Rothschild, Sir Mark Weinberg and Mike

Wilson in 1991, commenced trading in 1992

• £28.5 billion client funds under management
• Over £20 million donated to the St. James’s Place Foundation

• St. James’s Place Wealth Management

Services

Michelle has always been on hand with good advice when it is needed. She has seen me through the financial services minefield on a number of occasions and has coped with some tricky pension transactions well beyond my own capability. She is charming and personable and a pleasure to deal with. Her knowledge of financial issues is second to none in my experience and I look forward to working with Michelle and reaping the benefit of her experience for many years to come“ Andy Booth – Client Director, Circle Research "Michelle helped me to rationalise some quite "messy" pension and savings arrangements I had haphazardly built up over the years. She is always clear in explaining options, delivers to time frames and is a very nice person into the bargain. I have recommended her to friends and colleagues." Tim Johnson - Director, EJS Search Ltd "Comprehensive and exceptional financial advice from Germain Financial associates has saved us tax and exceeded all of the financial objectives we required to achieve unplanned, early retirement. We didn’t believe that it was possible. Thank you, for your unparalleled efficiency, charm and professional attention. You have changed our lives." David & Rosalie Rye – Retired Publisher

A clients’ perspective…

We put our clients first.

• Emphasis on building long-term, face-to-face client relationships
• A Distinctive Approach to Investment Management
• Emphasis on tax wrappers to maximise wealth preservation and

creation

• Tailored solutions for specific issues – working with panel of

experts to provide the best solution

• The St. James’s Place Foundation
• Guaranteed Advice*

*

• St. James’s Place guarantees the suitability of the advice given by the members of the
• St. James’s Place Partnership when recommending any of the wealth management products

and services available from companies in the group.

What makes St. James’s Place different?

Monitor Change Select

(Search, Research, Appoint)

The St. James’s Place Approach to Investment Management

Globally Regularly Appropriately

What makes St. James’s Place different?

A distinctive investment research approach

• People – talent, professionalism, independent thinking,

entrepreneurial, focused

• Investment Process - clearly defined, consistent, no undue

constraints, contrarian thinking

• Portfolio - portfolio and trading pattern disciplined & consistent,

manager conviction

• Organisation – Efficient asset size, efficient implementation ,

controls & support functions strong, employee participation, thorough governance/best practice

• Investment Results - consistent with strategy & risk, identifiable

rationales

What makes St. James’s Place different?

The St. James’s Place Investment Committee

Independent Members

• St. James’s Place

Experts Stamford Associates Investment Committee

A tangible body using internal & external expertise

What makes St. James’s Place different?

• 400 - Estimated universe of UCITS hedge funds within next 6 months
• 210 - funds identified via ‘at source’ research with investment banks
• 12 - funds left after initial filter based on liquidity, leverage, constrained

mandates, volatility

• 5
• shortlist assessment of fees, managed account availability & capacity
• 1
• manager recommended on basis of defensive strategy, experience &

depth of team, lower end fees & risk management process

Our approach in action -

What makes St. James’s Place different?

Date: April 2010 Source: Stamford Associates

Current Investment Houses

What makes St. James’s Place different?

External Service Providers

What makes St. James’s Place different?

A Bespoke Wealth Management Service

Key questions for you to consider…

As a city professional, finding the time to manage your personal finances can be

• challenging. Have you had time to consider any of the following questions?
• Are your personal affairs set up in the most tax-efficient way?
• When do you want to retire?
• Should you take Fixed Protection?
• How will the current pension legislation affect you?
• Are your previous pension arrangements working hard for you?
• How much income do you need when you retire?
• Have you protected your Pension and Death Benefits for your loved ones?

Whatever financial challenges you face, St. James’s Place Wealth Management can help you achieve clarity on your business and personal financial ambitions to achieve the lifestyle you require now and during retirement.

A Bespoke Service for Senior Executives

Individual Financial Planning for You and Your Family

• Pre-retirement planning opportunities
• Tax planning
• Maximising investment opportunities
• Protecting your income
• Trust & Estate Planning
• Portfolio Management

Main Pension Rules

Annual Allowance (from 6/4/11) £50,000 100% of relevant UK earnings – Tax Relief at Marginal rate – Carry forward – 3 years – Flat factor 16 times Lifetime Allowance (from 6/4/12) £1.5m – Fixed protection – Triviality £18,000 Tax Free Cash 25% Retirement Age 55

Fixed Protection

• Maximum amount of benefit that can be drawn from a pension

without paying tax currently £1.8 million (2011/2012)

• Will reduce to £1.5 million on 6 April 2012
• Aggregate limit of accumulated pension funds

– Includes funds accumulated prior to ‘A’ Day

• Funds above the Lifetime Allowance are subject to Lifetime

Allowance Charge of 55% or 25%

• Unless Protection is in place

Fixed Protection

• Urgent – Only available until 5 April 2012
• To review individuals position for Fixed Protection, we need:-

– Up to date benefit statement from the active scheme – Up to date values of any other DC/money purchase pensions – Latest benefit statement from any deferred DB/final salary schemes

Fixed protection means opting-out

• The need for retirement planning remains
• Subsequent investment planning may include*:-

– ISAs / Regular contribution Unit Trusts – VCT/EIS schemes * The underlying investments are usually held in very small UK companies, as such there is a risk

that any of these investments may not perform as hoped and in some circumstances may fail

• completely. They are only recommended to those who take a high risk approach to their

investments.

Tax relief until 5 April 2012

£5,000 £6,000 £8,000 £10,000 50% tax payer 40% tax payer 20% tax payer Gross Contribution Net Cost

• Any unused allowance carried forward will also receive tax relief at

highest marginal rate

24

New Carry Forward - Conditions

• Pay current year’s contribution first
• Carry forward unused allowance from earliest year first
• Need to have been member of a scheme (no longer requirement to

be eligible to contribute)

• Unused allowance = £50,000 less “total pension input” for the

“pension input period” ending in the tax year

• Includes employer contribution
• Individual needs earnings in 2011/2012 to support contribution
• No additional forms!
• Reported by self assessment

Carry Forward Use it or lose it?

• Do your know about Carry Forward?
• Review previous 3 years’ pension contributions
• Maximum fund this year to access unused allowance from

08/09 tax year

Drawdown Options

• Individual must meet minimum

lifetime pension income requirement of £20,000 p.a.

• Access of whole of drawdown fund

without a limit on an annual withdrawal

• Annual allowance charge on any new

pension contributions once application

• f access to fund accepted.
• Maximum Income 100%
• 3 yearly review to age 75
• Annual review post age 75

Flexible Capped

Flexible Drawdown

• A new term ‘Maximum Income Required’ MIR
• MIR set at £20,000 p.a from pensions (can include State Pensions)
• Once MIR established can take any amount out of the fund
• Taxed as income in that year
• Care to understand tax implications – Income on Death

Tax Year End Planning

All clients need to review their retirement arrangements in light of the proposed changes announced by the Government.

To do nothing is really not an option.

• Personal Wealth Management advice for Senior Executives
• Option to subscribe to topical St. James’s Place updates and

communications

• Regular Review Meetings
• Invitation to exclusive Client Briefings
• Tailored service agreement to suit your specific requirements

Our Relationship

Quarterly Investor Magazine Exclusive In-House Company Briefings

Our relationship - Exclusive Communications

Monday Market Bulletins Investment Bulletins Special Investment Bulletins

Our relationship - Exclusive Communications

Our relationship – Exclusive Client Events

Next Steps:

• Arrange a Confidential Personal Financial Review
• Register for Wealth Management Communications
• Find our more about us at:

www.germainfinancial.co.uk/seniorexecs

Contact Michelle & Stephen Tel: 020 8770 0647 Email: gfa@sjpp.co.uk Web: www.germainfinancial.co.uk/seniorexecs

• r scan the Q Reader below

‘Partner Practice’ is a marketing term used to describe St. James’s Place representatives.