Importance of ongoing advice

Importance of ongoing advice

“No plan of operations extends with certainty beyond the first encounter with the enemy’s main strength.” – Helmuth von Moltke 

This principle holds true for financial planning as well. 

In 2006, the Labour Government introduced Pension Simplification, a significant change in legislation that included the concepts of Lifetime Allowance and Annual Allowance. These changes necessitated a re-evaluation of retirement planning strategies. Since then, these allowances have undergone numerous adjustments—increases, decreases, and even removal—illustrating the fluid nature of financial regulations. A plan devised in 2006 would be largely outdated today. 

Financial plans are built on current knowledge, including legislation, taxation, and personal circumstances. While changes in legislation and taxation often have a minor impact on long-term cashflow strategies, the key to successful long-term planning is capturing and compounding small benefits annually. Conversely, changes in personal circumstances and objectives can significantly alter the overall strategy. 

Ellacotts Wealth Planning believe that a structured review process is essential for the success of any long-term plan. 

Waiting to review your plan until a problem arises or circumstances change can be risky. Our experience shows that a disciplined review structure is critical, much like regular dental check-ups. Regular reviews help identify potential issues early, making them easier to address before they become significant problems. 

Minor reviews can be conducted as desk-based processes to assess the need for rebalancing, appropriate cash levels, ISA allowances, or CGT allowances. Even in these instances, we will always check in with you to discuss any recent or upcoming changes in your circumstances that might necessitate adjustments. 

Full reviews focus on you—your goals, your plans, and ensuring everything remains on track. While investment performance is important, our primary concern is your personal progress, aspirations, and any changes you anticipate. Therefore, we will meet with you at least once a year, either in person or online, to review and adjust your plan as needed. 

Speak to our Wealth management team