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Brett Investment Newsletter - August 2011
Boring is Good
The thing about investing when done properly is it’s far from sexy and is in fact quite dull and boring.
I wish more IFAs were boring ………..
You see boring is good when delivering sound financial and investment advice. Recently we have relished our boring approach to investment advice. By keeping things simple and sticking to the key rules of investing (keeping costs low, good diversification and staying disciplined) we have been able to avoid the exciting funds which have failed so spectacularly.
If only more IFAs had stuck to this approach rather than push the next new thing.
Whilst I hope that the service we offer, linking your financial decisions to the lifestyle you really want, is never dull the best financial solutions usually are. Paying off inappropriate debt, keeping a cash reserve, rebalancing your portfolio from time to time and above all staying disciplined are often the best course of action.
But when I read stories of inappropriate investment advice I always ask ‘why’?
Why would any IFA recommend a complex and esoteric product (I am talking about so called guaranteed products) unless it is because they get paid more (commission) for this and / or they wish to impress their clients.
Leaving aside the issue of commission (as this is set to be banned from 2103) the need to impress is perhaps more worrying. I accept that interest rates are low and investment markets can be wildly volatile but the case for investing properly is as strong as ever. Despite decades of evidence to the contrary, there are always those that feel it possible to break the unbreakable link between risk and reward.
So rather than simple, evidence based investment recommendations, some advisers will always recommend what we (and the majority of IFAs) would never dream of touching.
The problem is that when things go wrong and compensation is due it is often those that are left who have to pick up the pieces (and the costs).
Perhaps with the introduction of the new RDR rules in 2013 things will improve. I can only hope so.
When Market Is in Turmoil, Fight the Urge to React
When global stock markets hit a rough patch, like we’ve been seeing, there’s a natural tendency to do something and to do it fast. It is a basic human instinct and one that we all to a greater or lesser extent have.
Plenty anecdotal evidence exists confirming that an investor’s natural reaction is to sell after bad news (when the market is already down) and buy when news is good (after the market is already up). In other words, sell low and buy high.
The first thing to do is acknowledge that we need to fight this tendency to do the wrong thing at the wrong time, so here are a few things to keep in mind:
1. Remember the “why.” Almost every time you make a rash decision based on past market performance, it’s a mistake. Investment decisions should be made based on your goals and not the market. Make changes when your goals change, and ignore the market.
2. Incorporate new information slowly. Of course, you learn things during market corrections, and what you learn may change your goals. During the huge decline of the credit crunch in 2008-9, many of us learned what risk really meant. Before that, risk was an abstract concept, but it became very real then. That experience might have changed your goals. That would be a reason to make a change to your investments. But even then, be patient. The time to think about going for a swim is not when you’re already in a life raft. Wait until things settle down and you can think rationally about the next course of action.
3. “Have you seen what the market is doing?” This is often what people say when they are in a state of shock and ready to go to cash “until things clear up.” Notice the implication that the market is “doing” something. The reality is that all we know is what the market has already done. We have no real idea of what it will be doing tomorrow or next week.
4. Jumping out of the frying pan and into the fire. Going to cash until things clear up does not reduce stress. When you sell, because you feel the market is going to fall further, you have a new problem: when to get back in. Unless you decided that your new plan does not involve exposure to the stock market, you now have to decide when to re-enter the market. The most common “plan” is to buy back in when things have “cleared up,” whatever that means. If that’s your plan, stop and take the time to define what the world will look like when things have cleared up.
Will the news be better or worse than today? Will the economy look better or worse? What will the BBC’s Robert Peston be saying?
Now think about this for a second, do you think the market will be higher or lower when things have cleared up? Of course, the market will be higher when things clear up. So now what we’re talking about is a plan to sell low (now!) and buy high (later!) on purpose.
5. Good diversification is crucial. By having a broad mix of very low risk assets (green) and high risk assets (orange) it gives a good chance that when your shares fall, your lower risk assets strengthen offering valuable protection.
6. If you have a plan, stick with it. You would never plant a tree and then dig it up every time the wind blows to see how the roots are doing.
7. Don’t worry in silence. If you are at all anxious we are only a phone call away.
Lastly, none of what I’ve outlined is easy. It’s hard to stick to a plan when everything is screaming at you to abandon ship. I’m also not saying that the market will stop going down. But if you have carefully considered your investment decisions in the context of your life and goals, with a clear understanding of the risks you take when you invest in the stock market (no excuses here since we just lived through the best example of risk in decades), then now is the time to stick to the plan.
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Brett Investment Newsletter - November 2011
Passive Investing goes ballistic
A quick look at recent IMA statistics for the first quarter of this year show that index tracker (passive) funds had their best-ever quarter ever; up 19 per cent on the previous year.
Already hugely popular in the States, UK investors, mainly via fee-based IFAs, are wakening up to the increased supply of factual data and logical reasoning that favours passive over active fund management.
That data is compelling, showing that over extended periods, such as five or 10 years, for bonds and equities, the majority of managers fail to beat the index.
Research has also identified the culprit, and it is not necessarily because active managers are "bad". The data shows that cost is the cause of many managers' failure to beat the index return. Not all managers are bad, indeed there are some very good managers, but their need to overhaul the drag as high total expense ratios create an often impossible hurdle to overcome. Low TERs mean more of the return achieved goes in to the client's pocket rather than the fund manager's, increasing the potential after-costs return to clients.
More advisers are questioning the TERs being paid for mediocre net-of-costs performance and deciding that index investing is the better route. The true long-term impact of cost is also becoming clearer. Assuming the same return, a fund with a TER of 1.6 per cent will erode 33 per cent of the client's portfolio over 25 years. An index fund with, say, 0.2 per cent charge will erode less than 5 per cent of the portfolio.
Source: FTadviser ‘New Star rising’ 28.07.11
Nucleus recently came out tops in the ‘Platform of the Year’ awards.
This award is for the Wrap platform that the judges deem to have made the greatest advance or been the most innovative in 2011. The judges felt that Nucleus has a unique proposition which is highly regarded by its users, is innovative, and has secured itself a strong financial position.
Our other platform offering – the Standard Life Wrap – won this award in 2010!
NEW – Inspiring Life!
As film quotes go, there can’t be many better than Forrest Gump’s, "Life is like a box of chocolates ………….you never know what you're gonna get”.
I think it sums up life and its uncertainty rather beautifully. Like all of you I have both good and bad days but remembering to appreciate all that life throws at me is not always easy. The older I get the more determined I am to be conscious of the preciousness of it all.
I am often struck that many people in life have so much money but little time or energy left in life. Time is strange – it is three-dimensional – the past, present and future. Instead of enjoying the moment I often catch myself looking to the future for myself, my family and my clients OR I sometimes reminisce and look back at the past in a sort of nostalgic (or even regretful) way. But the present is where I want to be, experiencing the now and immersing myself fully in life’s precious little ebbs and flows.
Someone recently reminded me that life is like a ‘three-legged stool’. I am sure that I don’t need to point out that you need all three legs when you sit down on a three-legged stool or you are going to just fall over. As time passes by the legs on your stool grow as you grow as a person. It they don’t grow in unison you are going to fall over. For me those stool legs are health, family and my business. Personally I need all three to thrive.
So just like investing money, in life we need to be disciplined too. If like me you listen to Simon Mayo’s fabulous evening show on BBC Radio 2 you’ll be familiar with his them tune, “…..enjoy yourself, it’s later than you think”.
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Brett Investment Newsletter - February 2011Brett Investment celebrates 10th Anniversary
Brett Investment celebrated its tenth anniversary with a drinks party at Main Street Trading in St Boswells.
Over eighty clients attended what turned out to be a very enjoyable evening.
We would like to say a big thank you to all of our clients for helping us to reach this milestone.
Click here to see the pictures of the evening.
Brett Investment short-listed for New Model Advisor Award
After searching the country for the best financial planners, New Model Adviser magazine announced the nominees that have shown commitment to their profession and passion for advice in their region.
Brett Investment is one of only five firms to be nominated for the Scotland & Northern Ireland region. This is the second time we have been short-listed for the award. Click here for more information. Brett Investment launch new website
We are very pleased to announce that our band new website is now live.
The new site explains how we differ from your everyday Independent Financial Adviser and what we mean by Financial Life Planning. |
Brett Investment Newsletter - March 2011Drawdown (USP) Forever
If you read the personal finance sections of the weekend press, you will probably have seen comments about abolishing the need to buy an annuity with pension funds post age 75 plus other drawdown (Unsecured Pension) rule changes.
These will become effective from April 2011.
Who should read this?
This briefing note will be of particular interest to people who are close to or already drawing down from their pension.
The headlines
In brief here are the following changes due to come into force from April 2011:
# So for anyone wishing to maximise the amount they can draw from their pension over the next 5 years a small window of opportunity remains. To benefit you must make a request prior to 5th April 2011 to commence drawdown and this will allow you to benefit from the 20% GAD uplift until 2016.
Should you wish to explore this option please contact me URGENTLY and we can make the arrangements for you.
In summary what will my options be at retirement?
From age 55 you can take a tax-free cash lump sum (usually 25%) from your pension fund and either buy an annuity or draw down an “unsecured pension” from the fund.
We are finding that an increasing number of clients are opting for the drawdown (USP) option.
What’s wrong with an annuity?
Not a lot. Annuities are a cost-effective way of buying guaranteed life-time income. They will remain the most suitable source of retirement income for most people.
An annuity is insurance against living too long. You hand over a premium (your pension fund) and the insurance company guarantees to pay you an income for the rest of your life – however long or short that is.
Objections to annuity purchase are often emotional, although this makes them no less valid. For example, most of our clients will be on the “winning” side of the annuity gamble and live longer than average; but we understand why they may not want to take the risk. So we understand why having an alternative to an annuity is important.
Drawdown forever
From April 2011, the same options will be available at whatever age you take your pension benefits after your 55th birthday:
• Annuity
Buying an annuity will continue to be appropriate for many retirees, especially for those with smaller pots as money-back guarantees will be allowed on death after age 75.
• Capped drawdown
This option will be a more restricted version of Unsecured Pension. The maximum income limit will be reduced from 120% to 100% of an equivalent annuity (known as the GAD rate). The minimum limit will stay as £Nil.
• Flexible drawdown
This option will allow individuals to draw down unrestricted amounts from their pension pot, provided that they can demonstrate that they have secured a sufficient minimum income to prevent them from exhausting their savings prematurely and falling back on the state. This is currently set at £20,000 p.a. Income that will count towards this include:
The 25% tax-free cash option will remain available, even after age 75. All benefits drawn down will continue to be taxed as income.
An example provided by HM Treasury is of a 65 year old man with £5,078 basic state pension and £2,500 additional state pension, but no other pension income. A healthy 65 year old would need a pension fund of roughly £233,000 to buy the £12,500 a year annuity income to meet the MIR. Any extra pension fund can be put into flexible drawdown and taken as taxed income without restriction. Alternatively this person can stick to the more restrictive capped drawdown.
Welcome reforms
Overall these planned changes are welcome. They should give savers more confidence that money saved in a pension is not wasted. However, drawdown should only be entered into after seeking specialist advice.
Of course if you have any queries please email me on jb@bretinvestment.com or call me on 01896 822520.
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Brett Investment Newsletters
In the Press (PDF) - September 2009 open >> |
"Like many people, I spend the majority of my time planning for my business, but pay little or no attention to my own finances.
Brett Investment has developed a personal plan for me that allows me to take much greater control of my financial affairs, and plan for the future. Everything now makes much more sense, and I only wish I had got in touch with Brett Investment sooner!" Gordon Brown - Managing Director, GB Telecom |
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Brett Investment Newsletters - 2010
Recent Market Turmoil (PDF) - June 2010 open >> |
"Like many people, I spend the majority of my time planning for my business, but pay little or no attention to my own finances.
Brett Investment has developed a personal plan for me that allows me to take much greater control of my financial affairs, and plan for the future. Everything now makes much more sense, and I only wish I had got in touch with Brett Investment sooner!" Gordon Brown - Managing Director, GB Telecom |
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Fun Videos
Gullibility Life Insurance
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"Brett Investment provides an excellent service, be it on a business or on a personal level.
I have found the company's advice regarding investment opportunities particularly helpful - everything is explained fully, no matter how complex the subject. The personal attention Brett Investment gives to its clients is first rate, and this makes a refreshing change in today's financial marketplace." Alistair Buchan - Proprietor, Lochcarron of Scotland |
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Fun Videos
And now for something completely different...
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"Brett Investment provides an excellent service, be it on a business or on a personal level.
I have found the company's advice regarding investment opportunities particularly helpful - everything is explained fully, no matter how complex the subject. The personal attention Brett Investment gives to its clients is first rate, and this makes a refreshing change in today's financial marketplace." Alistair Buchan - Proprietor, Lochcarron of Scotland |
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Dimensional Fund Advisers Videos
Origins of Modern Finance - Dimensional Stories, Chapter 1
The Birth of Indexing - Dimensional Stories, Chapter 2
Founding Dimensional - Dimensional Stories, Chapter 3
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"Like many people, I spend the majority of my time planning for my business, but pay little or no attention to my own finances.
Brett Investment has developed a personal plan for me that allows me to take much greater control of my financial affairs, and plan for the future. Everything now makes much more sense, and I only wish I had got in touch with Brett Investment sooner!" Gordon Brown - Managing Director, GB Telecom |
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Vanguard Videos
The Basic Rules of Investing - Burton Malkiel
Costs Matter - Peter Robertson
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"Jeremy is our third financial adviser, and a huge improvement on the others in terms of advice and commitment.
He is pro-active where the others were not, and has made us focus on our plans for retirement - a huge achievement! He intends to make his business grow here in the Borders, rather than re-locate to the city, and that makes his company additionally attractive to us." Harry & Senga Griffiths - Creative Director and Financial Director of H.G. Design |
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Contact Us Please contact us by completing the form below: |
Contact Details
Brett Investment 5 St. Dunstans Lane Melrose TD6 9RS Tel: 01896 822520 Fax: 01896 822437 Email: jb@brettinvestment.com |
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Library
Brett Investment Newsletters
November 2011 read >>
August 2011 read >>
March 2011 read >>
February 2011 read >>
2010 Newsletter Archive browse >>
2009 Newsletter Archive browse >>
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“Just to say many thanks for a very positive meeting yesterday.
Hilly and I came away feeling well satisfied that we are able to continue enjoying life without too much stress on the old finances and should be able to carry on with our present lifestyles for some time to come. Very satisfied with the way you are managing affairs and hope this will continue into the future.” Mr & Mrs B - Kelso |
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Wrap Login
Standard Life Account Standard Life Wrap Login >>
Nucleus Account Nucleus Account Wrap Login >> |
"Jeremy is our third financial adviser, and a huge improvement on the others in terms of advice and commitment.
He is pro-active where the others were not, and has made us focus on our plans for retirement - a huge achievement! He intends to make his business grow here in the Borders, rather than re-locate to the city, and that makes his company additionally attractive to us." Harry & Senga Griffiths - Creative Director and Financial Director of H.G. Design |
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Ongoing Review Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec nulla libero, dapibus in vehicula eu, vestibulum ac urna. Pellentesque molestie varius vestibulum. Proin malesuada tristique tortor, a dignissim tortor faucibus sit amet. Nunc nec urna sit amet orci porttitor egestas. Maecenas id eros lectus, in venenatis dui. Donec ac leo quis libero commodo pulvinar. Integer hendrerit enim non tellus feugiat quis auctor lacus feugiat. Donec vitae neque nec turpis facilisis molestie. Sed vehicula, lacus at bibendum tincidunt, justo turpis adipiscing risus, at sagittis diam metus et dui. Quisque aliquam enim sed mauris dictum posuere. Proin pellentesque blandit elit, in tincidunt mi iaculis imperdiet. Ut commodo iaculis nisl ut vestibulum. Nam tristique feugiat lobortis. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia Curae; |
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Checkpoint Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec nulla libero, dapibus in vehicula eu, vestibulum ac urna. Pellentesque molestie varius vestibulum. Proin malesuada tristique tortor, a dignissim tortor faucibus sit amet. Nunc nec urna sit amet orci porttitor egestas. Maecenas id eros lectus, in venenatis dui. Donec ac leo quis libero commodo pulvinar. Integer hendrerit enim non tellus feugiat quis auctor lacus feugiat. Donec vitae neque nec turpis facilisis molestie. Sed vehicula, lacus at bibendum tincidunt, justo turpis adipiscing risus, at sagittis diam metus et dui. Quisque aliquam enim sed mauris dictum posuere. Proin pellentesque blandit elit, in tincidunt mi iaculis imperdiet. Ut commodo iaculis nisl ut vestibulum. Nam tristique feugiat lobortis. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia Curae; |
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Implementation |
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Financial Bucket Presentation & Report Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec nulla libero, dapibus in vehicula eu, vestibulum ac urna. Pellentesque molestie varius vestibulum. Proin malesuada tristique tortor, a dignissim tortor faucibus sit amet. Nunc nec urna sit amet orci porttitor egestas. Maecenas id eros lectus, in venenatis dui. Donec ac leo quis libero commodo pulvinar. Integer hendrerit enim non tellus feugiat quis auctor lacus feugiat. Donec vitae neque nec turpis facilisis molestie. Sed vehicula, lacus at bibendum tincidunt, justo turpis adipiscing risus, at sagittis diam metus et dui. Quisque aliquam enim sed mauris dictum posuere. Proin pellentesque blandit elit, in tincidunt mi iaculis imperdiet. Ut commodo iaculis nisl ut vestibulum. Nam tristique feugiat lobortis. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia Curae; |
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First Meeting Lorem ipsum dolor sit amet, consectetur adipiscing elit. Donec nulla libero, dapibus in vehicula eu, vestibulum ac urna. Pellentesque molestie varius vestibulum. Proin malesuada tristique tortor, a dignissim tortor faucibus sit amet. Nunc nec urna sit amet orci porttitor egestas. Maecenas id eros lectus, in venenatis dui. Donec ac leo quis libero commodo pulvinar. Integer hendrerit enim non tellus feugiat quis auctor lacus feugiat. Donec vitae neque nec turpis facilisis molestie. Sed vehicula, lacus at bibendum tincidunt, justo turpis adipiscing risus, at sagittis diam metus et dui. Quisque aliquam enim sed mauris dictum posuere. Proin pellentesque blandit elit, in tincidunt mi iaculis imperdiet. Ut commodo iaculis nisl ut vestibulum. Nam tristique feugiat lobortis. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia Curae; |
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About You At Brett Investment, our initial focus isn’t on ‘this product’ or ‘this investment’, it’s on you. That’s not to say that the right product or investment approach isn’t important. It is. But it should only be addressed once we understand what is most important to you. Chances are it isn’t going to be ISAs or pensions. If you are visiting our site in search of sound financial or investment advice the chances are you also looking for quality answers to some very big questions. Questions like:
At Brett Investment we start by asking you about ‘you’. It’s only once we really know what you want out of life, that we can start giving you the answers.
A Typical Client For you to enjoy a successful investment experience, allowing you to relax and focus on what is important to you now, you need to know that your future is in the very best hands. Our aim is to develop a life-long relationship with you, that is successful for both of us. We are proud of our commitment to achieving our client’s goals and ambitions. But, this commitment takes time. We can’t do it for everyone. For us to continue to provide the level of service our clients have come to expect, we have put a ceiling on the number of clients we will work with. We generally work best with clients who are within 15 years of their desired retirement age or older. The majority have £100,000 or more of pension and/or investment capital to invest or manage (for younger clients this minimum can be waived). |
"Jeremy is our third financial adviser, and a huge improvement on the others in terms of advice and commitment.
He is pro-active where the others were not, and has made us focus on our plans for retirement - a huge achievement! He intends to make his business grow here in the Borders, rather than re-locate to the city, and that makes his company additionally attractive to us." Harry & Senga Griffiths - Creative Director and Financial Director of H.G. Design |
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BettrPlanning We follow a simple four-stage financial planning process:
This stage is all about getting to know you. Our ‘Discovery Meeting’ will help us to identify what’s important to you and give us an understanding of the things you want to achieve in your lifetime, particularly the sort of lifestyle you want to enjoy now and later in life. As well as defining your personal and financial goals, during the discovery stage we will also:
Once we understand what is important to you, we will analyse the information you have provided us with and assess your current situation. Using leading financial software we will then prepare a financial strategy that can help you get to where you want to be quicker and with less risk. At our ‘Strategy Meeting’, we will present this financial strategy and talk you through our recommendations in as plain English as possible, enabling you to make an informed decision.
Once any revisions have been made, we will organise a ‘Checkpoint Meeting’, where we will agree the final financial strategy with you and start implementing it. With your permission, we will carry out our recommendations, check and sort through the paperwork and, where required, co-ordinate the process between you and other professionals such as lawyers and accountants.
Once complete, we will arrange a ‘Follow Up Meeting’, where we will hand over the paperwork and give you a quick refresher on what we have just done. An evaluation programme is then established through face-to-face ‘Review Meetings’ (for most clients a meeting once a year is enough). At these meetings we will review your progress towards your long-term financial objectives, to maximise the likelihood of you 'staying on track'. |
"Like many people, I spend the majority of my time planning for my business, but pay little or no attention to my own finances.
Brett Investment has developed a personal plan for me that allows me to take much greater control of my financial affairs, and plan for the future. Everything now makes much more sense, and I only wish I had got in touch with Brett Investment sooner!" Gordon Brown - Managing Director, GB Telecom |
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Videos
As truly independent advisers, we are free to choose from an unlimited number of fund management groups.
We have no vested interest in the investment firms we partner with. The choices we make are based purely on our clients' best interests.
- Dimensional Fund Advisers (DFA)
DFA was set up in America over 25 years ago by leading academics. Today it applies financial science into modern investing and is now one of the largest passive fund management groups in the world. We are able to offer clients privileged access to these funds. Click here to view >>
- Vanguard
Vanguard is one of the largest fund management groups in the world and primarily deals with fee-based advisers both in the UK and the US.
It now manages $1.7 trillion worth of assets worldwide (as at 01.09.10) and just like DFA has some of the lowest expense ratios on offer. Click here to view >>
A Bit of Fun ………
Gullibility Life Click here to view >>
The Money Song Click here to view >>
Pixar's Up Click here to view >>
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"Through in-depth discussion Jeremy encourages us to regularly focus on our goals in life and then to financially plan with us to reach our aims.
This approach fully integrates life plans and the financial plans and makes very good sense. Brett Investment is very client centred and professional and we would happily recommend their services to others." George & Louise Runciman |
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Testimonials The majority of our clients are referred to Brett Investment by existing clients and other professionals. Here are some of the kind words they have for us:
He is pro-active where the others were not, and has made us focus on our plans for retirement - a huge achievement! He intends to make his business grow here in the Borders, rather than re-locate to the city, and that makes his company additionally attractive to us."
Harry & Senga Griffiths - Creative Director and Financial Director of H.G. Design Brett Investment has developed a personal plan for me that allows me to take much greater control of my financial affairs, and plan for the future. Everything now makes much more sense, and I only wish I had got in touch with Brett Investment sooner!"
Gordon Brown - Managing Director, GB Telecom I have found the company's advice regarding investment opportunities particularly helpful - everything is explained fully, no matter how complex the subject.
The personal attention Brett Investment gives to its clients is first rate, and this makes a refreshing change in today's financial marketplace."
Alistair Buchan - Proprietor, Lochcarron of Scotland
"We have been with Brett Investment now for three years.
His small team have made an effort to get to know us and so the service we receive feels very personal.
Jeremy has helped us to focus on what we want out of life and is helping us realise our plans.
The peace of mind we have from knowing our finances are being so well managed is priceless."
Mike & Wendy Davidson
"Through in-depth discussion Jeremy encourages us to regularly focus on our goals in life and then to financially plan with us to reach our aims.
This approach fully integrates life plans and the financial plans and makes very good sense.
Brett Investment is very client centred and professional and we would happily recommend their services to others."
George & Louise Runciman “Just to say many thanks for a very positive meeting yesterday. Hilly and I came away feeling well satisfied that we are able to continue enjoying life without too much stress on the old finances and should be able to carry on with our present lifestyles for some time to come. Very satisfied with the way you are managing affairs and hope this will continue into the future.”
Mr & Mrs B, Kelso
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"Brett Investment provides an excellent service, be it on a business or on a personal level.
I have found the company's advice regarding investment opportunities particularly helpful - everything is explained fully, no matter how complex the subject. The personal attention Brett Investment gives to its clients is first rate, and this makes a refreshing change in today's financial marketplace." Alistair Buchan - Proprietor, Lochcarron of Scotland |
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Bucket Case No. 2: Business owner who wanted out
Michael Confused owned his own business, but quite frankly he had had enough. Work was no longer enjoyable and Linda, his wife, was about to retire, so he wanted to know if he could too.
The trouble was that although he had various investments and pensions, as well as a business to sell, he didn’t know if it was going to be enough for him and his wife to lead the kind of retirement they always envisaged.
Essentially what he wanted to know was how big his bucket needed to be.
Michael and Linda had accumulated various assets during their lifetime. They owned their own home (value of £350,000), had investments and pension funds of about £400,000 plus they also had Michael’s share of the business (the value of which they weren’t sure about).
To be honest they were confused and needed help.
First of all we got Michael and Linda to think about the kind of lifestyle they wanted for now and into their retirement. It turned out that each had a passion for travel, so using powerful financial planning software we developed our BettrStrategy with them. This helped calculate how much they would needed in their bucket for Michael to retire and be able to live the life of their dreams without the fear of running out of money.
More importantly, Brett Investment was able to calculate how much Michael would need to sell his share of the business for (after costs and taxes) to have enough money. It turns out it was less than Michael thought but it also turns out that now that Michael knows his number he has greater certainty and confidence about his future and has now began to enjoy work again.
Michael and Linda are now well on course to achieving their plan. They meet annually with us, so that real progress can be made and their dreams become reality.
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"Like many people, I spend the majority of my time planning for my business, but pay little or no attention to my own finances.
Brett Investment has developed a personal plan for me that allows me to take much greater control of my financial affairs, and plan for the future. Everything now makes much more sense, and I only wish I had got in touch with Brett Investment sooner!" Gordon Brown - Managing Director, GB Telecom |
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Bucket Case No. 3: Retired and worried about spending too much
Bob and Alice Can-We-Spend-It had been retired for a couple of years. They had always dreamt of retirement and the things they’d do together and the places they would see.
The trouble was, they were worried about spending too much, too early, and not having enough for the future.
Bob and Alice enjoyed retirement but when it came to the big ticket items such as having that extra holiday in the sun, staying in a better hotel, taking the family away on holiday they somehow held back.
Although deep down they knew that they were financially comfortable, they had this nagging doubt about running out of money later in life.
Like many people, they had scrimped and saved to give themselves a comfortable retirement. They owned their own home, had an investment property worth £300,000 and pensions/investments/savings of £450,000. All in all a tidy sum but still Bob and Alice were concerned they didn't have enough.
Sitting down with them, we were able to establish how much the life of their dreams would actually cost. Then, using our BettrStrategy approach and our powerful financial planning software (The Bucket), we were able to identify how much capital they needed.
It turns out that it is a lot less than they thought.
In fact, based on prudent assumptions and allowing for inflation and the potential cost of future nursing care, B
ob and Alice were never going to run out of money.
Already Bob and Alice have a big family trip organised for the whole family.
They meet annually with us to make sure everything stays on track.
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"Jeremy is our third financial adviser, and a huge improvement on the others in terms of advice and commitment.
He is pro-active where the others were not, and has made us focus on our plans for retirement - a huge achievement! He intends to make his business grow here in the Borders, rather than re-locate to the city, and that makes his company additionally attractive to us." Harry & Senga Griffiths - Creative Director and Financial Director of H.G. Design |
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Data Protection Act 1998 - Use of personal information
As you may be aware, the UK is one of the most highly regulated financial centres in the world. This is to safeguard the interests of consumers and other persons purchasing and being advised about investments, insurance and other financial products and in use of their personal data. Against this backdrop, we are required to make certain regulatory and statutory declarations to you.
If instructed by you, we collect data during our initial and other meetings with you about you and your family. We will also be collecting data about you and your family from other persons. We collect the data through note-taking and filling in of questionnaires about you and your family’s circumstances.
We may make checks with credit rating agencies and Institutions with whom you have policies of insurance and investments and with your mortgage provider. The scope and extent of the gathering of information from third parties depends on what type of service you are taking from us.
How is your information used?
Primarily, we use your data and data about your family’s circumstances to provide advice to you and complete transactions on your behalf. We analyse and assess your data to maintain and develop our relationships with you.
Depending on the instructions we receive from you, we may pass your data to other professional advisers to enable us to provide advice most suited to your circumstances. Usually, this would be referrals to local accountants, solicitors, tax advisers and sometimes to specialist advisers in the financial and insurance industry where we do not feel we have appropriate expertise. We, and any third party specialist advisers to whom we introduce you, will, of course, pass your data to Institutions if you agree to purchase or amend policies and products as part of the sales and advice process.
Copies of the files we create about you may be retained so that in future it can investigate any concerns you or appropriate authorities may have about the sales and advice we give to you.
We will retain your data according to the statutory requirements for regulatory products. For instance, if you are given specialist pension advice, the data will be retained indefinitely. If you want details of the statutory retention periods for various product types please contact us.
Your data is held in our offices in computer-based and paper-based filing systems.
New products
We have a wide portfolio of financial and insurance products available to us. We believe these are some of the best and most appropriate in the marketplace. We would also like to be able to contact you so that we can further advise you of developments of new products that might be suited to you. We also might advise you of legal developments that might make it appropriate for us, or for third parties, to give you pro-active advice about the investments, insurance and other financial products of which we are aware. We stress that your information would only be used in this way to help us to provide a pro-active service to you. As we all know, time is precious and none of us want to be bombarded with information that is simply not relevant or which we do not require. Please tick contact us at our usual address if you do not wish your information to be used in this way.
Your right to a copy of your personal data
Under the Data Protection Act you have a right, upon payment of a fee, currently £10, to obtain a copy of the personal information that we hold about you. If you believe that any information held is incorrect or incomplete, you should contact us at our usual address. Any information that is found to be incorrect or incomplete will be amended promptly.
Thank you for your time and I confirm that we are at all times committed to making sure that you receive the best service and products available in the marketplace.
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"Like many people, I spend the majority of my time planning for my business, but pay little or no attention to my own finances.
Brett Investment has developed a personal plan for me that allows me to take much greater control of my financial affairs, and plan for the future. Everything now makes much more sense, and I only wish I had got in touch with Brett Investment sooner!" Gordon Brown - Managing Director, GB Telecom |
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About Us Brett Investment was established in 2000 by Jeremy Brett and has since grown to be the leading wealth management and financial planning firm in the Scottish Borders. Since 2004, Brett Investment has worked with clients on a fee basis, as this is the only way to offer truly objective advice. Experience has shown that once the concept of fees has been properly explained to clients, they much prefer working this way (click on our Fees v Commission page for more information). In 2008 and again in 2011, Brett Investment was one of only five firms to be short-listed for the New Model Adviser of the Year Award (Scotland and Northern Ireland).
About Jeremy Brett Jeremy started his career in financial services back in 1992 and having experienced both the good and the bad of the industry, set up his own business in 2000. He was one of the first IFAs in Scotland to pioneer a move to a fee basis and became a CERTIFIED FINANCIAL PLANNERCM professional in 2007. Married with a young family and living in Melrose, Jeremy currently serves on the Scottish committee of the Institute of Financial Planning and is a regular features writer for the Southern Reporter.
Why use a CERTIFIED FINANCIAL PLANNER professional
CFPCM, CERTIFIED FINANCIAL PLANNERCM and |
“I believe in many cases the consumer gets a raw deal from the financial services industry. Too much focus still exists on the selling of financial products - and not enough on genuine financial planning.
In an increasingly complex and fast moving world the help and advice a financial planner can offer is genuinely invaluable.” Jeremy Brett - Brett Investment |
are cetification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB.
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A Better Way - BettrInvest Portfolios We believe that it is our job to help maximise your chances of having a successful investment experience. Most investment strategies are simply a series of short-term speculative bets strung together and called ‘investing.’ These active management strategies, that attempt to predict the future, are promoted by overconfident advisors who too often place their interests before yours. In our opinion there is no credible evidence supporting the theory that active management enhances investment results. At Brett Investment we have rigorously constructed a series of investment (BettrInvest) portfolios which we believe give you the best chance of having that successful investment experience. We have achieved this by investing in broadly diversified, mutual funds called asset class funds. Our policy is to use these ‘passively managed’ funds where possible as these result in lower investment costs, lower risk and the most effective portfolios attainable for each selected asset class. These funds are allocated to parts of the market that offer long-term risk and return characteristics that are relatively predictable despite ever-changing economic, social, political, and financial conditions. There has never been a more important time to get a second opinion about how your current investment strategy is performing. So, why not arrange an informal, no-obligation meeting with Brett Investment and discover how our philosophy to investing could benefit your future?
Past performance is no guarantee of future returns. The value of a unit linked investment is not guaranteed on encashment and you may not get back the full amount invested. |
"Brett Investment provides an excellent service, be it on a business or on a personal level.
I have found the company's advice regarding investment opportunities particularly helpful - everything is explained fully, no matter how complex the subject. The personal attention Brett Investment gives to its clients is first rate, and this makes a refreshing change in today's financial marketplace." Alistair Buchan - Proprietor, Lochcarron of Scotland |
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Fees v Commission
At first glance, paying by commission may appear tempting because you don't have fork out a lump sum up front. But it can affect the long-term return on your investment. Paying by commission does not mean an adviser's service is free. Instead, you are paying indirectly through extra product charges, which pay for their commission. These charges reduce the amount of money left for investing. In our experience the majority of financial advisers are more focused on trying to sell, arrange or implement new financial products. After all, that is how they get paid. And once they have received their initial commission, there is no real incentive to make sure their recommendations are working for you. In fact, their biggest incentive is to get you to switch investments or buy another product. At Brett Investment, we are fee based, meaning that we work for you and not for the financial institution whose products we may be recommending. Being fee based means we provide truly objective advice. We have a strong incentive to minimise your costs and maximise your account value as this aligns our interests with yours. After all, the only way our fees can grow is if the size of your account grows. Our pricing structure is based around the value we deliver, not the time we spend on providing services. All fees, expenses and transaction charges are fully disclosed and clearly accounted for. Our fee includes personal cash flow forecast, consolidation, unlimited meetings, liaison with professional advisors and a lifetime relationship - all for less than the cost of an average UK unit trust fund. We only use investment funds, custodians and financial products which are commission free, and always negotiate with fund managers to reduce costs where possible. Our fees are described in full within our Client Agreement, which you will receive at our Discovery Meeting. The introduction in the next couple of years of the Retail Distribution Review, which recommends that commission be banned and instead be replaced by ‘adviser charging’, will force IFA firms to change their business models. At first they will change in order to survive but, in time, more and more will look to embrace lifestyle-linked financial planning. |
"Through in-depth discussion Jeremy encourages us to regularly focus on our goals in life and then to financially plan with us to reach our aims.
This approach fully integrates life plans and the financial plans and makes very good sense. Brett Investment is very client centred and professional and we would happily recommend their services to others." George & Louise Runciman |
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Bucket Case No. 1: Happily retired and comfortably off
John and Jane Well-Off were retired and although instinctively they knew they had more than enough income and assets to support their own life, they also knew that a large part of their estate would end up with the taxman.
Not only did they have plenty income through their generous final salary pension schemes, they had also accumulated £600,000 in various investments and savings accounts. John and Jane also owned a house with a value of £300,000.
John and Jane came to Brett Investment seeking investment advice.
We spent time with them, getting to know what they wanted to do with their rest of their lives. We then established the cost of their desired lifestyle in retirement and this is what we found: Based on prudent assumptions and allowing for inflation and the potential cost of future nursing care, John and Jane were never going to run out of money. In fact, their wealth was only ever going to grow.
John had already mentioned in our conversations that they did not wish to pay the Chancellor any more tax than they needed. The problem was that if both died now their Inheritance Tax bill was over £100,000! With a growing estate this bill would only ever get bigger!
This is what we did…
Using our BettrStrategy approach and using powerful financial planning software (The Bucket), we were able to establish how much income and capital was actually surplus to John and Jane’s needs.
In effect, we worked out how much they could afford to spend annually and how much they could afford to gift away without the fear of ever running out of money.
As a result, John and Jane then set up a ‘family trust’ arrangement and are now on course to eliminating their Inheritance Tax liability.
John and Jane’s investments were also transferred into our BettrPortfolio, which reduced their investment costs, improved their diversification and gave them a higher probability of achieving a successful investment outcome.
This leaves John and Jane with the security and peace of mind that they can live the kind of life they want whilst gradually passing on their wealth to their family instead of to the taxman.
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"Brett Investment provides an excellent service, be it on a business or on a personal level.
I have found the company's advice regarding investment opportunities particularly helpful - everything is explained fully, no matter how complex the subject. The personal attention Brett Investment gives to its clients is first rate, and this makes a refreshing change in today's financial marketplace." Alistair Buchan - Proprietor, Lochcarron of Scotland |
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The Bucket (of life!)
This is our assessment of the amount or the ‘bucket’ of money you will need to continue living the lifestyle you enjoy now - or to start living the lifestyle you really want.
It’s the ‘bucket’ of money you will need to do everything you ever want to do, without worrying about running out before you’ve done it.
So, how big does your bucket need to be? Most people have assets, investments and income, but they don’t really know how that translates to what they will need in the future, or whether it’s enough.
At Brett Investment, we will ask you the right questions to give you the right answer.
Not just financial questions about what you own and what you earn, but personal questions about what you want to do, how you would like to live and when you would like to retire.
Only once we have a better understanding of what you want from the rest of your life, can we can tell you how big your bucket needs to be and advise you on how to make sure it is full.
Case Studies
Here are a few examples of who we help and how we have helped them (names and exact figures have been changed to repsect privacy).
Bucket Case No. 1: Happily retired and comfortably off
John and Jane Well-Off were retired and although instinctively they knew they had more than enough income and assets to support their own life, they also knew that a large part of their estate would end up with the taxman. Read more >>
Bucket Case No. 2: Business owner who wanted out
Michael Confused owned his own business, but quite frankly he had had enough. Work was no longer enjoyable and Linda, his wife, was about to retire, so he wanted to know if he could too.
The trouble was that although he had various investments and pensions, as well as a business to sell, he didn’t know if it was going to be enough for him and his wife to lead the kind of retirement they had always envisaged.
Essentially what he wanted to know was how big his bucket needed to be. Read more >>
Bucket Case No. 3: Retired and worried about spending too much
Bob and Alice Can-We-Spend-It had been retired for a couple of years. They had always dreamt of retirement and the things they’d do together and the places they would see.
The trouble was, they were worried about spending too much, too early, and not having enough for their later years. Read more >>
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"We have been with Brett Investment now for three years.
His small team have made an effort to get to know us and so the service we receive feels very personal. Jeremy has helped us to focus on what we want out of life and is helping us realise our plans. The peace of mind we have from knowing our finances are being so well managed is priceless." Mike & Wendy Davidson |
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Brett Investment Brett Investment is an independent wealth management and financial planning firm, which specialises in working with individuals, families and trustees within the Scottish Borders. Unlike many independent financial advisers (IFAs), we believe that planning for the future isn’t just about pensions and other bits of money but is about you and the things that are important to you. Only once we have understood your concerns and listened to your dreams and ambitions of how you wish to spend the rest of your life, will we then talk to you about a financial plan that can make those dreams reality. That way, you become our client and not just your money. This approach to financial planning is called Financial Life Planning and we believe it is a better way to work. If this sounds attractive or you would simply like more information, please call 01896 822520 or email us on jb@brettinvestment.com
The guidance contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
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