Your Personal Information
Under the Financial Services & Markets Act 2000 we, as Independent Financial Advisers, are required to have a proper regard for our client’s best interests in any advice given.
We must therefore do our utmost to ensure that we are aware of your personal and financial circumstances so that our advice is the most suitable for your needs. The Fact Find comprises a series of questions which have been specifically designed to help us provide advice that meets your needs. Depending on your circumstances not all the questions may be required, or alternatively additional questions may be required.
If for any reason you decline to answer any or all of the questions, or fail to provide true and accurate information to the best of your knowledge, the advice given subsequently may not be the best advice, as it can only be based on the information provided.
This information will be treated confidentially and will only be used for advising you on your financial affairs and for no other purpose. Where you accept our recommendations, the information will form part of our confidential customer database and we are a registered user of such information under the Data Protection Act.
Email Address: 1. The here and now
Age, family situation, financial dependence, residence and domicile.
Record what cash you keep on hand for emergencies. We suggest enough for three months essential household outgoings. Then list your property, possessions, existing savings, investments, pension and life insurance, and what returns they pay, if any.
Interest rate & monthly return
List the value of what you currently owe to others: mortgage, personal loans, credit card balances and any future financial responsibilities like commitments to children or other dependants that are not covered in your regular budget.
Interest rate and monthly cost
e) Planned spending
Do you have any planned major expenditure in the near future (conservatory, upgrade of car, sabbatical or extended holiday etc).
f) Earning capacity
Record your current occupation status and what you think your occupational salary and pension prospects are likely to be in the years ahead.
g) Tax status
What rate of income tax do you pay? What allowances are you using?
Note any known issues that may have some impact on your income or expenditure.
i) Inheritance and wills
Record the terms of any wills or trusts that you expect to benefit from, and the terms of your own will and what you would like to leave).
3. Looking ahead
a) Goals and aspirations
Name your goals – such as study, children, home move, career changes, retirement, travel etc. If you have several, which are the priorities?
What dates/timings are important for you to have sums of money available?
Do you need to achieve a minimum lump sum or income as an absolute must? If so, how much is that and how often/when?
If your goal is to produce income, how much do you need after tax and how frequently?
b) Changes to circumstances
Things on the horizon that have money implications – relatives going into care, children needing further support, changes at work etc.
Is your tax status likely to change in the near future (for example if you plan to move abroad or stop work)?
What do you think will happen to interest rates?
Would this affect your needs?
4. Know yourself
5. Your saving and investing potential
a) How much money do you have available?
Do you have lumps sums to invest – how much?
Are you looking for regular savings and investing plans – how much can you regularly pay in?
Do you foresee your spending patterns changing in the next few years?
Is there a likelihood of further money available in the future?
THINK – is your budget realistic or are you over-stretching?
Is there likely to be pressure on your budget in the future?
Could you increase savings or investment if things ease off financially as children leave home, a mortgage is repaid, or you receive an inheritance?
6. Risk Assessment
7. Attitude to Risk
a) Compared to others, how do you rate your willingness to take financial risks?
Extremely low risk taker
Very low risk taker
Low risk taker
Average risk taker
High risk taker
Very high risk taker
Extremely high risk taker
b) How easily do you adapt when things go wrong financially?
c) When you think of the word “risk” in a financial context, which of the following words come to mind first?
d)Have you ever invested a large sum in a risky investment mainly for the “thrill” of seeing whether it went up or down in value?
Yes, very rarely
Yes, somewhat rarely
Yes, somewhat frequently
Yes, very frequently
e)When faced with a major financial decision, are you more concerned about the possible losses or the possible gains?
Always the possible losses
Usually the possible losses
Usually the possible gains
Always the possible gains
f) What degree of risk are you currently prepared to take with your financial decisions?
g) Have you ever borrowed money to make an investment (other than for your home)?
h) Suppose that 5 years ago you bought shares in a highly regarded company. That same year the company experienced a severe decline in sales due to poor management. The price of the shares dropped drastically and you sold at a substantial loss.
The company has been restructured under new management and most experts now expect it to produce better than average returns. Given your bad past experience with this company, would you buy shares now?
i) Investments can go up or down in value and experts often say you should be prepared to weather a downturn. By how much could the total value of all your investments go down before you would begin to feel uncomfortable?
Any fall would make me feel uncomfortable
more than 50%
j) Most investment portfolios have a mix of investments – some of the investments may have high expected returns but with high risk, some may have medium expected returns and medium risk, and some may be low-risk/low-return. (For example, shares and property would be high-risk/high-return whereas cash and bank deposits would be low-risk/low-return.)
Which mix of investments do you find most appealing? Would you prefer all low-risk/low-return, all high-risk/high-return, or somewhere in between?
k) With some types of investment, such as cash and bank deposits, the value of the investment is fixed. However inflation will cause the purchasing power of this value to decrease.
With other types of investment, such as shares and property, the value is not fixed. It will vary. In the short term it may even fall below the purchase price. However, over the long term, the value of the shares and property should certainly increase by more than the rate of inflation.
With this in mind, which is more important to you – that the value of your investments does not fall or that it retains its purchasing power?
Much more important that the value does not fall
Somewhat more important that the value does not fall
Somewhat more important that the value retains its purchasing power
Much more important that the value retains its purchasing power
l) Think of the average rate of return you would expect to earn on an investment portfolio over the next ten years. How does this compare with what you think you would earn if you invested the money in bank deposits?
About the same rate as from bank deposits
About one and a half times the rate from bank deposits
About twice the rate from bank deposits
About two and a half times the rate from bank deposits
About three times the rate from bank deposits
More than three times the rate from bank deposits
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