Pete Matthew of Jacksons Wealth Management uses mainly on-platform passive multi-asset funds in Sipps and personal pensions to help clients reach their financial goals.
Pete Matthew, Managing director, Jacksons Wealth Management
We love it best when clients come to us five to 10 years before they want to retire. There is time to put right any wrongs or to take their retirement planning seriously if they have not done so far.
An essential component of the planning is the cashflow model. Hardly anyone who comes to us has the ability to visualise their future finances. They may have a vague idea they will be OK or that they need to save more or spend less, but they do not know for sure.
We use Moneyscope as our cashflow tool because it is quick and easy to use and we can edit and update on the fly, live with the client if we need to.
Often we find clients have a disparate collection of funds and wrappers, bearing no resemblance to their stated attitude to risk. We usually use multi-asset funds held on a platform to tidy things up.
Our primary investment partner is Seven Investment Management (7IM). We have been working with it for nine years and it continues to serve our clients’ needs perfectly.
Our work is all about focus: focusing the clients’ minds on their goals and timescales; focusing their portfolio to reduce costs and administration and reflect their risk profile; and focusing on the value we can add.
What’s in your wrapper?
More often than not, we use one of 7IM’s multi-asset funds, and usually the passive asset allocation versions.
These always form the core of our portfolios, but we will often add exchange traded funds or other more focused funds as satellites. This depends on how hands-on the client wants to be.
We have looked at model portfolios, both outsourced and building our own, but we have yet to see where the benefit lies compared with Oeic-wrapped funds of funds. These are generally cheaper and more widely diversified.
Retirement planning tips
Help clients visualise the future with a cashflow model, but understand the limitations of predicting the future.
Impress on the client the need for budget management, unless they are super-rich.
Encourage clients to sacrifice now (but not too much) to secure their future.
Do everything possible to reduce the clients’ cost of investing: passive portfolios, simple wrappers.
Encourage clients to spend their hard-earned money. They cannot take it with them when they die.
My favourite client case
My favourite case was when my optician made an appointment to see me. Aged 57 at the time, she had escaped from a violent marriage at the age of 40 with little more than the clothes she was wearing. She started saving in earnest, but when she came to me, she was convinced she was going to be destitute in retirement.
I helped her to see that she had managed to save enough money to retire comfortably to Spain eight to 10 years earlier than she had hoped.
Decumulation is about encouraging clients to spend their money well. Money is for using, not for hoarding.
How clients use their money is up to them, but we encourage them to enjoy their wealth and to pass it on to the next generation in a carefully planned way using trusts and regimented giving.