This document discusses financial planning and whether it is better to do it yourself or work with a financial advisor. It outlines what financial planning involves, the benefits of working with an advisor, and what to expect from the financial planning process. Some key points are: - Financial planning provides direction for financial decisions and considers short and long-term goals. It enables adapting to life changes and feeling more secure goals are on track. - Doing it yourself risks not considering the whole picture or having the expertise needed. Working with an advisor provides expertise, helps improve finances, and develops a long-term financial plan. - Working with an advisor involves analyzing current situation and goals, developing recommendations, implementing the plan, and monitoring

1. Investors in Values
LWM Consultants Ltd.
Financial advice, or do it yourself, that is
the question?

2. “You may have come across the term
financial planning and wondered what
does it mean, and does it apply to me?”

3. What is financial planning
• Provides direction and meaning to your financial
decisions
• Considers the whole picture, so one decision impacts on
another
• Enables you to consider both short and long-term goals
as part of your overall life goals
• Enables you to adapt more easily to life changes
• Makes you feel more secure that your goals are on track

4. Do it yourself – why?
• You have a need and know what you want, i.e.
prepared to do your own financial planning and
know how to deliver your goals
• You want online access and ability to trade 24
hours a day
• You have access to plenty of free “advice”
through online media, papers, magazines, self help
books and good investment knowledge
• You don’t want to pay for “advice”, and are
happy for the responsibility for decisions to rest with
you
• You want to take advantage of “low charges” – no
advice charges mean charges can be lower

5. Do it yourself?
- the market
• Dominated by one key player, but others coming on
board
• Likely to become more popular as advice focuses on
higher value investors, market already has a firm foothold
as alternative option to advice
• Product focus, i.e. pension, ISA etc
• Technology driven, online access 24 hours day
• Price driven, big players can get “rebates” from fund
managers which they pass back to customers (may
change in 2013)
• Marketing / service driven – plenty of free / guided
“advice” i.e. “popular funds”, portfolios etc
• Focus on funds, but plenty of trading platforms for those
wanting to invest in shares etc

6. DIY – be your own
financial planner
• Set measurable goals
o Rather than saying you want to be comfortable in retirement, quantify what you
mean and how you will achieve this
• Understand the effect of each financial decision
o All financial decisions are interrelated, so a decision around a child’s education may
effect when and how you meet your retirement goals
• Review your financial situation periodically
o Financial planning is a dynamic process
o Goals may change over the years due to changes in your lifestyle (i.e. an
inheritance)
o Revisit and review your financial plan as time goes by to reflect these changes so
you stay on track with your long-term goals

7. DIY – be your own
financial planner
• Start planning as soon as you can
o Don’t delay your financial planning
o Save or invest small amounts of money early, and often
o Develop good financial planning habits such as saving, budgeting, investing
o Regularly review your finances so you are better prepared to meet life changes and
handle emergencies
• Be realistic in your expectations
o You cannot change your situation overnight, this is a lifelong process
o And remember there are events beyond your control such as inflation, stock markets
and interest rates which will affect your financial planning results

8. DIY – be your own
financial planner
• Realise you are in charge
o Be sure you understand what you are doing
o Make sure you look at your whole financial situation
o Ask yourself questions before making any decisions

9. Financial advice - myths
• Financial advice is not about selling you a
product
• Financial advice is about working with you
to develop a long-term financial game
plan, i.e. financial planning
• Financial advice does not have to be paid
for in cash
• Financial advice can be paid for out of
the investments used to deliver your long-
term financial game plan

10. Financial advice – why?
• You may need expertise you don’t possess
in certain areas of your finances. For
example, an adviser can evaluate the
level of risk you are comfortable with, and
adjust your retirement plan to reflect this
• You may feel you don’t have the time to
spare to do your own financial planning
• You have an immediate need or
unexpected life event such as a birth,
inheritance or major illness

11. Financial advice – why?
• You feel a professional financial adviser could help
you improve on how you are currently managing
your finances
• You know that you need to improve your current
financial situation but don’t know where to start

12. What to expect from a
financial adviser
A financial adviser will work with you to develop a
game plan that fits your financial circumstances and
tailors it to accomplish your goals by:
• Looking at the whole financial picture including
your goals
• Understanding your tolerance for risk and what your
expected returns are
• Providing an unemotional assessment of what
needs to be done
• Delivering a comprehensive annual review
• Keeping your informed

13. The process
• Analysing and evaluating your financial goals
o Understand what your goals are
o Analyse your information to assess your current situation
o Determine what you need to do to meet your goals
• Develop and present financial planning
recommendations and / or alternatives
o Deliver financial planning recommendations that address your goals
o Go over the recommendations with you to help you understand so that you
can make an informed decision
o Listen to your concerns and revise the recommendations as appropriate

14. The process
• Implementation of financial planning recommendations
o Agree how recommendations will be carried out
o Adviser may carry out the recommendation, or act as a “coach”, co-
ordinating the whole process with you and using other professionals such as
stock brokers etc.
• Monitoring your financial plan
o You and the adviser agree who will monitor your progress towards your goals
(normally this rests with the adviser)
o If resting with adviser then they will review your situation and adjust the
recommendations, if needed, as your life changes

15. Expectations
• Set measurable goals
o Rather than saying you want to be comfortable in retirement, quantify what you
mean, the adviser can only help if your goals are quantifiable
• Understand the effect of each financial decision
o All financial decisions are interrelated, so a decision around a child’s education may
effect when and how you meet your retirement goals
• Review your financial situation periodically
o Financial planning is a dynamic process
o Goals may change over the years due to changes in your lifestyle (i.e. an
inheritance)
o Your financial adviser will meet you at least once a year to review your financial
situation, but you can call them anytime if things change

16. Expectations
• Be realistic in your expectations
o An adviser cannot change your situation overnight but they will take control of
the lifelong process to deliver your goals
• Realise you are in charge
o You are in charge, make sure you understand what your adviser is doing for
you and what they are offering
o Make sure you provide the adviser with all the relevant information on your
financial situation
o Ask questions and play an active role in decision making

17. Do you have to pay?
• YES
• An adviser is a professional like an accountant or
solicitor and they will charge
• From 2013 charges for advice must be clear and
transparent (this will apply to platforms who offer a
“free” service)

18. Do you have to pay?
• What you pay depends on the structure they have
but may include:
o Hourly or fixed fee – you will be charged an hourly rate or fixed fee for any
work they do for you
o Retainer fee – some may combine the hourly rate or fixed fee with a
retainer fee. This could be a fixed amount or a percentage of your
investments
• This could be as a direct payment, or could be
made out of your investment

19. Do you have to pay?
Example of charges
Initial Advice On-going service
Percentage fee 1% 1% p.a.
Fixed fee £5,000 £5,000 p.a.
Note:
• Based on investment of £500,000
• Often the investments will have rebates from fund managers
(especially funds, which can be offset against fees)
• The fee can be paid as a cash payment or taken from the fund

20. Choosing an adviser
Remember you are in charge:
• Understand the initial process, and what
they do for you
• Understand what on-going service you will
get – for example:
o What is the annual review – not only looking at goals and
aspirations but also your investment performance, review
of legislative changes, appropriateness of current strategy
and recommendations for any changes
o Regular information – regular market information, alerts on
regulatory changes and access to information on your
investments
o Telephone contact – being available when you need
them

21. Choosing an adviser
Effectively the whole partnership is
service driven, a good service means
you don’t need to worry about
financial planning because they will
do that for you.

22. What if I only have a
small amount of money
and need advice?
This is likely to be mopped up by the banks. The service
is likely to be more product focused and less emphasis
on lifetime financial planning goals.

23. Choosing an adviser
• You can find financial advisers on-line there are a
number of websites you can go to like -
http://www.unbiased.co.uk/
• Alternatively think about what you do for major financial
decisions like buying a car or house, this is no different:
o Ask friends, family or work colleagues. Recommendations are worth their
weight in gold
o When you find an adviser, do your research, find out what they will do for you,
look at how they communicate with their clients (look for websites, twitter,
Facebook and other social media outlets)
o Talk to them, talk to their team, be active

24. Financial advice, or do it
yourself, that is the
question?

25. About LWM Consultants
We are financial advisers who developed a company based on
Values. Adding Value is how we judge ourselves.
We aim to:
• Share knowledge; good knowledge is the pathway to
understanding
• Be thoughtful and challenging of set ideas and practices
• Be supportive and empowering of our employees
• Help those less fortunate than ourselves in the UK and overseas

26. Twitter: http://twitter.com/#!/LWM_Consultants
Facebook: http://www.facebook.com/InvestorsinValues
Website: http://www.lwmconsultants.com/public/
Shareshare: http://www.slideshare.net/InvestorsinValues
LWM Consultants Ltd is an appointed representative of Sense Network
Limited, which is authorised and regulated by the Financial Services
Authority. Registered in England and Wales under Company Number
07408315. Registered Office: St John’s Court Whiteladies Road Bristol BS8 2QY