Reviews

Question 1

Identify reasons why a financial plan should be reviewed regularly

Answer 1

Legal/economic/tax change

Circumstances change

Investment performance/rebalance

Ensure objectives still being met

Question 2

10 financial planning issues that you would discuss with Simon and Grace at the next review

Answer 2

Ensure use of ISA allowance and CGT exemption maximised
Review funding of pensions to ensure it is at the appropriate level
Changes in tax and pension legislation
Any additional funds to invest
Any changes to their wills
Change in income or expenditure
Assess risk profile and C4L and make changes if required
Performance of investments against expectations/benchmarks set
Review of protection needs/determine if there is a shortfall
Change in their health
Change in the economy/brexit impact
Any new products available

Question 3

10 events that should trigger a immediate review of Simon and Graces finances

Answer 3

A change in their ATR or C4L
End of tax year with ISA limits or CGT exemptions
Grace loses her job
Simons business is struggling
Change in personal circumstances E. g. death or divorce
They decide to change their wills
Unexpected windfall or inheritance
Health problems/Simon is unable to work
Change in tax or pension legislation
Adverse market conditions/significant fall in investments

Question 4

Identify 6 benefits of receiving regular reviews

Answer 4

The adviser can adjust the plans based on any personal changes in circumstances or objectives
The adviser can take account of any change in their tax status/amount Grace is earning/any change in value of Simons company
The adviser can review the performance of their holdings against a benchmark and rebalance if req’d
The advice can be adjusted based on changes in legislation or new products available
Can review the cost of uni cost and ensure the couple have funds to cover these costs
The adviser can ensure they are on track to be able to retire at 60
The adviser can review the protection in place and continues to be suitable

Question 5

Identify six issues to discuss on pension planning at next review meeting

Answer 5

Any change in their target retirement date
Any change in their target retirement income
Asset allocation/fund performance/ change in investment preferences or ATR
Has Simon increased the employer contribution to his PPP
Has Simon transferred the benefits from his old schemes to his Assure Life PPP
Any increase in expenditure or changes in income received
Economic market condtions
Changes in pension/tax legislation