Wealth Management Service
“It’s just good old-fashioned service. We feel very well looked after.”
Rather than fit clients into a product or solution, we asked them what they wanted from a financial planning service – the answer was advice, guidance and research to enable them to make the right decisions for themselves. They then wanted to be fully supported by us all year round.
If you have existing investments or pensions that you would like to review or if you have new funds to invest, our Wealth Management Service provides the regular financial input and management needed to increase the likelihood of achieving your financial objectives.
For a new client, the Schaefer Wealth Management Service is an option that can be selected after any initial transactions have been set up. There are two levels of service: the Review service and the Comprehensive service.
The Comprehensive Service
This is an all-inclusive package of financial planning advice, ongoing active investment management and administrative support. Everything you need in one service.
This is ideally suitable for clients with substantial combined investment and pension funds capital, or those who want Schaefer’s active investment management.
What’s Involved
The annual fee covers all the fund management, general financial advice, administration, and reporting services throughout the scheme year. At the end of each year, you decide whether to renew the service for a further 12 months.
We make additional, subsidised, charges for complex financial planning work such as estate planning, pension transfers, financial protection work.
Investment Management
We offer two portfolio approaches for Comprehensive Service clients:
1. The ‘Capital’ portfolio approach
The Schaefer Wealth Management Capital Portfolios (Defensive, Cautious, Balanced and Adventurous) have been designed to mitigate volatility by actively reducing exposure to equities in uncertain times. These portfolios are suitable for clients willing to sacrifice some investment growth in order to reduce the loss of capital from market falls.
2. The ‘Growth’ portfolio approach
When you invest in a growth portfolio you participate in the market and accept the volatility that comes with that – both on the upside and the downside. The portfolio is designed to remain invested over the longer term and ‘ride out’ any potential volatility.
The Growth portfolios will be invested in accordance with an agreed risk profile and will not deviate from this. This obviously provides the opportunity for greater returns, but also the greater potential for the value of your investment to go down.
We provide a detailed Annual Review Report that looks back at the past year as well as considering the next 12 months.
What is the Cost
There is normally an initial cost to develop a financial plan and, if appropriate, transfer assets onto the Wrap/Platform for management.
The ongoing management fees are 1.25% of the assets under direct management for the Capital Portfolios. So if you have £300,000 of investments then you will pay £3,750, normally exempt of VAT.
For the Growth Portfolios, we charge 1.00% of the assets under direct management for the Capital Portfolios. So if you have £300,000 of investments then you will pay £3,000, normally exempt of VAT.
You can cancel our ongoing services at any time and any unused fees for it will be refunded to you.
The Review Service
This is for clients who want a general review and are then happy to leave matters until the next review.
This service is ideally suitable for clients with combined investment and pension funds capital of more than £30,000 and do not require Schaefer’s active investment management. You can cancel our ongoing services at any time and any unused fees will be refunded to you.
Key Points
Many clients set up investments and policies and then never review them. For many, a solid annual review is all they need to keep their financial objectives on track.
What’s involved
Adopting this service could involve amalgamating assets onto a platform or wrap but it often involves reviewing existing contracts and making changes to them.
Investment Management
Under the Review Service we carry out a general financial review once a year, providing an overview of financial protection, investments and pension planning, as well as reviewing the investment funds you are invested in. The investment review will set a new asset allocation for the next 12-month time frame, as well as reviewing and changing investment funds. Reviewing investment funds every 12 months should increase the likelihood of better performance when compared to funds that have not been reviewed, or are reviewed only occasionally. We tend to use broad based general funds over a 12-month timescale.
Each year you will have the option to renew the Review Service for a further 12 months. Some clients may choose to have this review on a less frequent basis.
What is the Cost
There is normally an initial cost to develop a financial plan and, if appropriate, transfer assets onto the Wrap/Platform for management.
The ongoing management fees are 0.75% of the assets under direct management. So if you have £60,000 of investments then you will pay £450, normally exempt of VAT. You can cancel this ongoing review service at any time and any unused fees for it will be refunded to you.
The Standard Service
Key Points
Not everyone needs ongoing investment management and advice; perhaps there is a one-off issue that needs dealing with which is why this service may relevant.
What’s Involved
We discuss the specifics of the work that needs to be undertaken and then carry that out. Generally, no follow up action is needed but adhoc reviews can be agreed if they are. We do not review the funds or policies and investments involved.
What’s the Cost?
The cost for the work is agreed at outset and invoiced when the work is complete.