Sir Ranulph Fiennes, renowned explorer, spoke to Success Magazine about his record-breaking expeditions, emphasizing the importance of teamwork. He discussed how financial planning helped change one client's life by providing for a comfortable retirement. The article also previewed goals-based investing going mainstream and focusing on lifetime cashflow planning to achieve life goals.

1. AUTUMN 2014
UltimateExplorer
MAKING
CASHFLOW
COUNT
Goals-basedInvesting
GoesMainstream
Sir Ranulph Fiennes OBE,
talks exclusivelyto
Success Magazine about
teamwork,adventures,
record-breaking challenges,
love and legacy.
the increasingly attractive
approach of goals-based
investing.
A SUCCESSION GROUP CLIENT TELLS US HOW
FINANCIAL PLANNING CHANGED HIS LIFE

2. 03 PENSIONSAVING
David Lane gives us his views about changes to pension
saving rules.
04 ANDTHERE’SMORE
Additional services for clients.
05 RANULPHFIENNES:ULTIMATEEXPLORER
Sir Ranulph Fiennes OBE, talks about teamwork, adventures,
record-breaking challenges, love and legacy.
06 MAkingCashflowcount
Why it is so important for Financial Planners to be aware
of the bigger picture.
08 Goals-basedInvestingGoesMainstream
Tom Williams looks at the increasingly attractive approach of
goals-based investing.
09 PAYINGFORUNIVERSITY
How to fund university costs.
10 housingrecovery
A look at how the speed of recovery in the UK housing
market took most analysts by surprise and the effect it’s had.
11 THELASTWORD:Trusts,notdeadyet!
Steven Howells tells us why trusts have become an
intrinsic part of the way that we live our lives today.
A very warm welcome to our new look Solutions
Magazine. In this Winter issue we discuss how, with
the right technology and expert support, Succession
Benefit Solutions can benefit you, the employer, as well
as providing a powerful motivational and retention tool
for your staff.
Auto-enrolment will be in effect throughout all firms by
2017, and presents a huge challenge to all employers.
On page 4, we explain the effects and implications the
workplace pension reforms will have on firms, and
provide you with information on how we can help
you meet the compliance challenge that comes with it
through a workplace pension scheme.
On page 6, we analyse the importance of Succession’s
corporate wrap, explaining how with a secure, easy-
to-understand, online tool your staff can manage their
pensions and other investments in one place, before
revealing how Succession Benefit Solutions can help
you promote the benefits of group income protection.
Finally, turn to page 7 to see how, with the help of
your Succession Group Financial Planner, you can offer
employees a cost-effective Private Medical Insurance
scheme, tailored to your business, to maximise value
from this important benefit.By guaranteeing employees
PMI you can increase the engagement, retention and
recruitment of staff. Also on page 7, we offer you some
relief from the financial world with our own review on
the eagerly awaited F-Type Jaguar.
We very much hope you enjoy this issue of Solutions
Magazine and please let us know if any of your colleagues
or friends wish to receive a complimentary copy.
Should you require your Succession Group Financial
Planner to call you, or have any queries on any of the
articles in this magazine and how they may impact upon
you, please feel free to contact us by phone, e-mail, or
by the ‘Contact us’ button on our website.
Sanjay Shah
Managing Director
Succession Benefit Solutions LLP
02 www.successiongroup.co.uk
CONTENTS
INTHIS
ISSUE
Success Magazine is designed and published by Succession Group Limited.
No part of this publication may be reproduced without the permission of the publishers.
Welcome to this issue of Success Magazine.
Our lives, and our family’s well-being, are influenced to a
large extent by our finances.On page 6 we look at exactly
what is meant by lifetime cashflow planning and why it is
so important that your Financial Planner is aware of your
biggerpicturetohelpyouachieveyourlifegoals. Succession
Group client Phil Robinson shares how cashflow planning
has helped him enjoy a good retirement, even though he
sold his business in a depressed market.
Our range of services has expanded rapidly and page
4 spells out some of the additional solutions available
from your Financial Planner. Whether you are looking
for protection, insurance or to act as a buffer to mitigate
the impact of inheritance tax, we have the right solution
for you.
Succession Group works with a range of experts
across many disciplines. Lucian Cook, Director of
Residential Research for Savills, gives his unique
perspective on the UK’s housing market and Foot
Anstey’s Steven Howells explains why after more
than 900 years, trusts are still hugely relevant given
the complexities of family life.
Sir Ranulph Fiennes shared some remarkable tales of
his expeditions and record-breaking challenges when
he attended the Succession Group annual conference.
He is most definitely not a spender – revealing that his
jacket was 48 years old and that he also owns a suit
from the same vintage. Read what drives him, and what
he believes to have been his greatest challenge.
And finally, on page 8, one of our investment partners,
SEI, looks at how human behaviour and instinct can
affect our financial decision-making.
We hope you enjoy this issue. Should you require your
Planner to contact you about your own investment
portfolio, or if you have any queries about the articles in
this magazine and how they might impact on you,please
feel free to contact us.
Simon Chamberlain
Group CEO
Succession Group
05
04
07

3. www.successiongroup.co.uk 03
Budgets come and go and for many of us they pass
in a blizzard of economic data and sterile political
argument.
However, the Budget George Osborne delivered
earlier this year does not easily fit this mould, with
the Chancellor providing a series of announcements
that signposted a radical shift in the way pensions
and savings in general will be treated in the future.
The proposed changes have been seen by many
commentators as a bold attempt to re-invigorate
the savings culture in the UK. They not only allow
people a greater freedom in the way they save but
also critically how those savings can be accessed.
Others are not so sure and have real concerns that
the economic and social consequences of these
reforms, particularly with regards to pensions have
not been properly thought through.
The pension revolution?
In a range of reforms, including an overhaul of the
Individual Savings Account, the stand out proposal has
to be the relaxation in how people can access their
defined contribution or“DC” pension pots.
Essentially, anyone who wishes, can take their whole
pension fund in cash from age 55.
The Chancellor re-affirmed his commitment to
retaining a tax-free cash entitlement of 25% with
the remainder being taxed at the pension member’s
marginal income tax rate. These changes apply to
“defined contribution” schemes such as personal
pensions and do not apply to final salary or defined
benefit schemes.
Queen’s Speech confirms
PensionsTax Bill
The Government has undergone a consultation on
these proposals and announced in the recent Queen’s
Speech that it will be introducing a new Pensions Tax
Bill in the Autumn session of Parliament. However, as
we wait for this to appear, what are the main talking
points as to how these proposals will change the
pension landscape?
annuitisation vs moral hazard
Firstly, from 6 April 2015, there will be absolutely no
requirement to buy an annuity at retirement.That does
not mean that an individual should NOT purchase
an annuity, it is just that the requirement to do so will
entirely disappear. On the face of it, this relaxation is a
big win for investors with smaller pension pots.
Critics of the policy have cried “foul” and cited the
danger of “moral hazard”. There are concerns that
people with pension savings could pay themselves too
much too early in retirement and underestimate their
own life expectancy,leaving themselves with little or no
provision later in life.
Opponents of this view call this patronising nonsense,
arguing that the tax implications of withdrawing large
amounts from a pension fund would put a natural fiscal
break on this type of behaviour.
As Merryn Somerset-Webb writes in Money Week,
“those who hold pensions aren’t idiots, likely to turn
from diligent believers in the future to spendthrift
short-termers on the turn of 55”.
Danger of re-investing
pension pots into property
The other concern is that investors will cash in their
pension savings and re-invest the net proceeds into
alternative investments such as buy-to-let properties,
fuelling a potential further spike in prices in a market
that is showing some signs of overheating, particularly
in London and the South-East.Whatever the outcome
- advice will be essential.
New pension rules
However prior to these proposals becoming law, the
Chancellor has tweaked the existing rules. For those
who are already drawing from their pension plans the
new drawdown limit will rise from the current 120%
to a new limit of 150% of the equivalent annuity.
Therulesforflexibledrawdownarealsotobereformed.
Currently, you are able to drawdown as you please as
long as you are able to prove that you have a minimum
guaranteed annuity of £20,000 per annum; the new
minimum will be only £12,000 of annuity per annum
subject to pension scheme rules.
In addition, for those individuals with smaller pension
pots,the size of those pots that can be taken as a lump
sum, regardless of total pension wealth, will increase
from £2,000 to £10,000. Additionally, the number of
small pots that can be taken as lump sums will increase
from two to three. Lastly, the amount of total pension
wealth that can be taken as a trivial commutation lump
sum will be increased from £18,000 to £30,000.
Huge opportunities?
Yes,but these changes also come with certain challenges
which will take some time to work through and there
are a number of questions you need to ask yourself.
• How,and to what extent,do these new rules affect
you and your current and future financial planning?
• Will the manner in which you save change?
• How you will access your savings in the future?
• Have your future retirement plans altered?
To help you answer these questions an early engagement
with your Succession Group Financial Planner is critical.
A valuable tool in bringing to life the impact of these
reforms is Succession Group’s cashflow modelling which
allows you to meaningfully assess with your Planner all the
financial and tax implications for you and your family.
Thisisthecrucialstepinmakingthesenewopportunities
work for you in the most effective and tax efficient way
possible. It is only by liaising with your Planner that you
can ensure that you maximise the benefits and minimise
the risks that flow from these announcements. ■
David Lane is Business Development
Technical Director forVestraWealth LLP.David
specialises in providing technical consultancy
services to Independent Financial Advisers,
lawyers and accountants focusing primarily
on UK pensions, tax and trusts and general
financial planning. David is a Chartered
Financial Planner, a Fellow of the Personal
Finance Society and a full member of the
Society ofTrust and Estate Practitioners.
This document is for informational purposes only and does not constitute advice
or a personal recommendation or take into account the particular investment
objectives, financial situations or needs of individuals. This document is not
intended and should not be construed as an offer,solicitation or recommendation
to buy or sell any investments.You are recommended to seek advice concerning
suitability of any investment from your Financial Planner.
The information and opinions expressed herein are the views of Vestra
Wealth LLP and are based on current public information we believe to be
reliable; but we do not represent that they are accurate or complete, and
they should not be relied upon as such. Any information herein is given in
good faith, but is subject to change without notice. No liability is accepted
whatsoever byVestraWealth LLP.
PENSIONSAVINGTax Expert David Lane gives us his views about
changes to pension saving and cautions that
financial advice is critical.

4. Protection Plans
When the unexpected happens,such as not being able
to work through sickness or injury, or because of a
premature death, what really matters is knowing that
you have a protection strategy in place to give you and
your family financial peace of mind should any of these
circumstances arise.
With limited Government support available, few of us
could cope financially if we were unable to return to
work. Protection insurance gives you and your loved
ones reassurance that your family’s lifestyle is protected
in the event of a change in income due to premature
death, illness, accidents or unemployment.
Whether you need a cash lump sum, or regular
payments to help meet the everyday cost of living,
Succession Group offers a number of comprehensive
solutions to help you deal with the aftermath of
unexpected life events.
Property Purchase
The house you buy, improve or aspire to – whether
as your home or an investment - is probably the
single biggest investment you will make. Tougher
rules requiring lenders to look at spending habits,
rather than income, came into force earlier this year
following the Financial Conduct Authority’s review
of the mortgage market.
It is not just a question of who you borrow the money
from,but also about the type of mortgage and whether
the capital amount can be secured by an existing asset
such as pension or investment savings.
Succession Group will give you access to a panel of
mortgage lenders offering market-leading, specialist
deals to deliver a cost- effective solution to meet
your needs*. Your home may be repossessed if you
do not keep up repayments on your mortgage.
At retirement
The 2014 Budget saw further changes and
restrictions to the amount that can be contributed
tax efficiently into a pension scheme without
incurring punitive tax charges. It also gave people
options for pension draw down and there was an
increase to the state pension age.
Few companies now offer generous retirement
pensions and individuals are increasingly on their
own if they want more than a subsistence pension
of some £7,000 a year during the last 20 or so years
of their lives.
The choices for a comfortable retirement are looking
less rosy – especially for those without a plan in place.
With fewer people working, and more retiring, it is
only a matter of time before the value and availability
of even a basic state pension – already described in the
DailyTelegraph as one of the meanest state pensions
in the western world - is eroded or removed entirely.
Our priority is to ensure you receive the best possible
advice, with expert Financial Planners working with
you to review your retirement plan regularly and
implementing alternative strategies if the lifetime
allowance – the maximum amount of tax-relieved
pension savings built up over your lifetime - is likely
to be exceeded.
Household
contents insurance
A recent report from the Association of British
Insurers states that 20% of UK households are at
risk of being underinsured as a result of the value
of belongings increasing. Underinsurance usually
results in a reduction in the settlement of a claim
and at a time when personal items have been lost
or damaged, this can come as a very unwelcome
surprise. But the good news is, it’s something that
can be avoided.
To avoid disappointment, it is highly recommended
that your policy is reviewed at least once a year.
Reviewing the value of any new personal items
purchased during the year, as well as the rise in
value of more precious items such as jewellery,
art and antiques, can help remove any uncertainty
over whether you will be covered should you have
to make a claim.
Building insurance
An accurate estimated ‘rebuild cost’ for your
property is just as important, factoring all materials
and labour.This cost will naturally vary depending
on property size, age and type of property.
Even with helpful online tools, it’s widely
acknowledged that reviewing insurance cover can
be time consuming and may seem complicated for
those not up-to-date with the current prices of
their most valuable items.
Banks, direct offers and comparison sites might
seem appealing, but Succession Group’s General
Insurance panel proposition offers clients value-
for-money cover that is complementary to our
client’s other financial solutions. ■
* A fee of 1% of the loan, subject to a minimum of £250 and a
maximum of £500 is payable once a Decision in Principle has
been secured from the recommended lender.
ANDTHERE’SMORE
www.successiongroup.co.uk04
Succession Group now offers an extended range of financial advice solutions
complementing our independent investment advice and financial PLANNing
services. Entirely tailored to your risk profile and personalised financial plan,
the additional services include mortgages, protection, pension and insurance.
As part of our service, Succession Group’s
Financial Planners take the time to understand
your unique needs and circumstances. If you
would like to discuss the additional services now
available please contact your Financial Planner.

5. RanulphFiennes:
UltimateExplorerSir RanulphTwistleton-Wykeham-Fiennes OBE, 3rd
Baronet,
talks exclusivelyto Success Magazine aboutteamwork,adventures,
record-breaking challenges, love and legacy.
Sir Ranulph“Ran” Fiennes is,according to Guinness
World Records, the world’s greatest living explorer. He
was the first person, with Charles Burton, to reach both
North and South Poles on foot. He also made it into
the record books by completing seven marathons on
seven continents (including Antarctica) in seven days.
Taking up climbing following a lifelong fear of heights,
Ran became the oldest Briton to conquer Everest on
his third attempt at an age when most people are
expecting their bus passes.
As well as holding a number of endurance records, Ran is
also one of the UK’s top celebrity fund raisers and to date
has raised £16.2m for UK charities in his 40-year career
as an adventurer.
The earlyyears
Until the age of 24, I only wanted to do one thing -
command the fantastic Royal Scots Greys regiment, as
my father had. I served eight years in the British Army
in my father’s regiment, and was seconded to the SAS
becoming the youngest Captain in the British Army. I
spent my final two years seconded to the army of the
Sultan of Oman, and was awarded the Sultan’s Bravery
Medal from HM the Queen.
Many British explorers have died in their attempts to reach
the North or South Poles and it was a great shame that we
were beaten to the North Pole by an American team in
1910,and then by the Norwegians who were first to reach
the South Pole in 1911. Sixty years later,over breakfast,my
wife came up with the idea of being first to both Poles in
the course of a single journey.
That challenge over the cornflakes resulted in me
leading a three-year, 52000 mile odyssey between 1979
and 1982, and becoming the first person to reach both
Poles, the first to circumnavigate the world along its
polar axis, and the first to cross both the Antarctic and
Arctic Ocean.
My Greatest Challenge
But the expedition that took longest and I suppose I was
most happy to eventually succeed in - because otherwise
we would have wasted 26 years – was to find the lost city
Ubar, sometimes called the Atlantis of the Sands.
By the fifth expedition (there were eight in total each
taking a long time to organize and find sponsors) having
discovered a pillar in the desert, but not the lost city, and
racing against a German team that was also searching
for it, I was beginning to think we would never find it.
Whether an expedition goes well or not is immaterial,
although we always try to keep the sponsor happy.
But my wife, who spoke Arabic, was very, very keen to
discover it, and we persisted.
Eventually,having begun the search in 1968,we discovered
Ubar in 1992. That was my greatest challenge and if it
sounds like an Indiana Jones story, the archeologist on the
team Dr Uri Zarins did in fact wear the same hat.
What drives me
After leaving the army, my career as an expedition leader,
travel writer and fund raiser evolved, and now age 70, I
remain busy with lectures,mentoring,fund raising,farming on
Exmoor,and continued involvement in expeditions.
Having experienced more than 30 expeditions over a
40-year period, I have learnt that inspiration for new
expeditions can come from anywhere. However, it has to
be proven that there is an unbroken record before we will
go for it (and even now, there are still a number of polar
records yet to accomplish).
Ourteamgetsmotivationfromourowncompetitiveness.
We’ve been known to rapidly pull a Polar team together
to compete against a rival explorer’s challenge. Even
the opportunity to conduct scientific research by linking
together a number of challenges excites me.
More recently, expeditions have included the additional
element of fund raising for charity, which is above and
beyond the significant sponsorship necessary to fund the
expedition. Charities such as Seeing is Believing, Marie
Curie and the Multiple Sclerosis Society have been the
primary beneficiaries. We have found that climbing
Everest and running marathons is a much easier way to
raise funds than holding a jumble sale, and to date we
have raised £16m for charity.
The rightteam
Over the years, a magnificent expedition team of
more than 50 unpaid volunteers has grown to meet
the challenges of raising sponsorship, finding the right
team-mates, and navigating the political, geographical
and physical barriers and complexities of our trips.
That is why a team with the right balance of character
and attitude is essential. Personality is most important
because“expedition fever” is inevitable, making even the
most peaceful person gloomy, spiky and rash. Skills can
be taught. Being kind is a gift.
We use everything available to make our expedition
more comfortable, and part of our trip involves testing
the latest kit and equipment in extreme conditions, at
the same time conducting scientific research. Today’s
expeditions contrast starkly with our early expeditions
of the ‘70s and ‘80s when there was no Sat Nav, GPS,
or sat-phones, which meant we had to rely on the same
type of theodolite or sextant to navigate as Shackleton
and Scott had used at the turn of the century.
I’m a celebrity?
I have yet to be approached about a film of my life,
although I did audition with Cubby Brocolli for the
role of James Bond (Roger Moore got the role). The
BBC’s World About Us series did film our Headless
Valley expedition depicting the first complete journey
by water from the northern borders of the Yukon,
through the Rockies, to the southern border of the US
in Vancouver via nine rivers but to date, that has been
my only foray into the world of broadcast.
My life learning
Expeditions pale by comparison when you have
someone you love, and live with for most of your life,
and I have been very lucky having two wonderful wives.
I was happily married for 38 years to Ginny, and now to
Louise and we have a daughter. I’m very proud of that,
but recognise that it was my good fortune.
Anyvices?
I used to go for chocolate in a very big way but have cut
down because of diabetes. ■
Areyou a spender
or a saver?
I take advice and trade shares that I like the sound of.
My wife has a horse business,and we are hoping for
great things, but at the moment I need to do quite
a lot of lectures.
I don’t smoke, party or drink; my car cost £9000
– although I am a Land Rover Ambassador. This
blazer is 48 years old. I have a pin stripe suit of
the same vintage.
www.successiongroup.co.uk 05

6. 06 www.successiongroup.co.uk
Succession Group places great emphasis on face-to-face financial planning.
We take the time to get to know you well, understand your goals, and the key
financial milestones in your life to create a tailored plan that will secure your
financialambitions. Success Magazineasked Malcolm Stone,Succession Group’s
Director of CashFlow Planning,to explain why it is so important for Financial
Plannersto be aware ofthe bigger picture.
It’s often not until we reach our 60s, facing the
prospect of retirement and the termination of
a regular income, that we start wondering how
to make best use of a lifetime’s savings over the
decades ahead, that we appreciate the benefits of
a visual cashflow forecast more clearly.
The decisions for today’s retirees are more
complex than for previous generations. This is
partly because we live longer and therefore
retirements last longer, but also because there
are no longer generous pension schemes on offer.
Without the right guidance, this has meant that
people reach their mid-60s with a collection of
assets, typically including several work pensions,
savings and the family home and no idea whether
it is enough to live out the rest of their days.
Some would suggest a software tool or online
research engine is sufficient to plan your long
term financial security. I certainly don’t believe
that a complex estate planning problem, or a
finely balanced drawdown case, can be solved
using a set of advice algorithms. Not yet anyway.
But similarly, I don’t believe that financial planning
without using lifetime cashflow forecasting is
accurate enough to provide a professional service.
Planners who don’t use it are in danger of making
judgments that lack any framework.
A new dawn
A new dawn of financial planning – where
professional, qualified Planners oversee the whole
of a client’s financial circumstances – twinned with
new technologies that help people to model their
expected, or hoped-for, expenditure over their
remaining lifetime is beckoning.
Tremendous benefits accrue from using technology
with clients and it is more than merely a back-office
tool. There are a variety of software options being
used by financial planners but once you have‘seen’your
financial future displayed visually on a lifetime graph,you
will certainly understand the impact of your financial
decisions – no-one wants to be in the‘red’.
At initial meetings clients can see what we do by using
financial planning software to illustrate our process -
from initial data entry through to a lifelong cashflow
forecast. This is done by entering approximate figures
for the clients’capital,income,and expenditure.
Lifelong cashflow forecasts are prepared,based upon
prudent assumptions regarding future cash inflows
and outflows, future inflation, and future investment
returns. Additional forecasts are developed to identify
‘what if’ moments eg the premature death of either
spouse or if either spouse became disabled and in
need of long term care.
inter-generational
planning
Increasingly, inter-generational planning is a major
element - and not just to mitigate tax. Lifelong
cashflow planning is used to identify the extent to
which clients could help family members without
prejudicing their own financial security. Helping
children or grandchildren with education expenses,to
pay off student loans or to fund deposits for their first
homes are high on the list of most clients’priorities.
Clients are fully involved in deciding what planning
assumptions would be appropriate and what
changes should be made if cashflow modelling
demonstrates that the initial assumptions are
unlikely to achieve their objectives.
Confidence forthe
future
The questions that underpin everything are “how
long are your assets likely to last, and how long do
you think you are likely to live?’
I’m quite sure that most of us fear that we will
run out of money too soon. Or, if too cautious,
will we end up having not used our assets to their
full potential?
The latter case is not so uncommon. Many
people have saved carefully during their working
lives. They are frightened of running out of money,
sometimes unnecessarily.We carefully model their
future outgoings and often point out that they
have scope to spend more than they thought.
The modelling enables clients to look 15, 20 or
even 40 years ahead. It makes clients feel more
confident – that they have choices and options.
Entering your outgoings – or hoped-for outgoings
– to cover everything from essential costs, such
as heating or council tax, through to discretionary
spending on travel, car replacements or gifts to
grandchildren is the necessary input before a
series of graphics and charts is then generated,
showing whether you will outlive your money, or
vice versa.
The visual representations of cashflow allow for
different scenarios to be pictured alongside each
other.This can spur clients to take action, as they
can see graphically when their current situation
will cease to support them. There are multiple
scenarios for which this can be useful, from
varying retirement dates and life projections to
budgeting for a child at university. ■
Have your circumstances changed since you last saw your Financial Planner? Call us now and book an appointment for review.
MAkingCashflowcount

7. www.successiongroup.co.uk 07
Retirement is a very personal choice. I remember
a friend of my father’s working well beyond
retirement age so that he could enjoy a good
retirement,but sadly we attended his funeral a short
time later. From an early age, I knew I wanted “a
good retirement”, and for me that meant retiring
when I was 55.
As a business owner I needed to be certain that
the one real asset that would fund my retirement
could create enough capital to ensure that I
would never run out of money.
That kind of lifelong cashflow forecasting is not
something that can be done on the back of an
envelope, so over a period of six months my
Financial Planner used detailed expenditure
analysis and forecasting to demonstrate that
I could live the life I wanted with the funds
available to me.
My family has farmed for generations. My
grandfather bought the family farm, in Madley,
near Crewe, in 1948, and four years later my
father took over the tenancy. I farmed in
partnership with my parents until my father
passed away. Livestock farming is a challenging
career choice and the last 15 years in particular
took a great toll on us all.
Neither of my two daughters wanted to pursue
a career in farming, and Joan and I decided to
sell. At this time I had no idea how much money
I would need to sustain a happy retirement and
support my family.
Malcolm has been my Financial Planner for 20
years, supporting me both professionally and
personally with a financial plan designed to achieve
my goals. He was aware that I was keen to retire
and worked with me over a number of months to
help me understand “how much is enough?”
Using sophisticated software, Malcolm brought
my financial position to life. I could see clearly
the impact of different lifestyle choices; I could
ask lots of ‘what if’ questions, and, crucially, get
meaningful answers that enabled me to make
real time decisions.
The cashflow forecasts showed me how much
I needed from the sale of the farm in order to
meet my retirement goals.This proved invaluable
and even showed me that I might be able to
retire earlier than previously anticipated.
Crucially, it meant that I wouldn’t have to hold
out in a depressed market for an optimum
price, potentially delaying my retirement date.
After much discussion, Joan and I agreed the
financial plan and put it into action. Malcolm
attended the auction with me in November
2006 and the farm was sold for a fair price.
Without doubt, I would not have had the
courage to go to auction if it were not for the
cashflow.
I was able to retire at 53 and working with
Malcolm consolidated my assets, maximized
tax advantages and created an investment
plan using ISA and other investments.
Without Malcolm’s input, I might still be
waking at the crack of dawn to milk the cows
instead of being out on the golf course 3 or
4 times a week.
I have just turned 60 and Joan and I have
built one house and are now in the process
of building a second. Lots of farmers don’t
know that there is a life beyond the farm and
now I truly am enjoying life in a way I couldn’t
have even imagined before. Being able to take
spur-of-the-moment trips to Paris certainly is
a luxury.
Cashflow planning changed my life and meeting
with Malcolm every 6 months to review my
financial situation ensures that I am always on
top of my finances. I can’t understand why
more people don’t use it. ■
cashflowcasestudy:philrobinson
life long cashflow
forecasting is not
somethingthat can
be done onthe back
of an envelope

8. 08 www.successiongroup.co.uk
Goals-basedInvesting
GoesMainstreamAs investors heightened their focus on personal investment
goals, goals-based investing is emerging as an increasingly
attractive approach says SEI’s Tom Williams.
Coming out of the “Great Recession,” investors want
to know how to navigate an ever-changing investment
landscape in a world where there’s a new crisis on
every horizon. Investors are looking for assistance in
defining their unique personal financial goals and are
seeking strategies designed to help get them there.Such
needs are a far cry from product-only sales that entail a
cookie-cutter approach and often ignore the fact that all
investors are different.
In building a portfolio to meet their unique needs, they
are less likely to concentrate on portfolio returns in
relation to a benchmark and more likely to focus on
how they will meet their many financial objectives
(including saving for retirement or saving for their
children’s education).
SEI has been on the cutting edge of goals-based
investment strategies since 2003.After publishing a ground
breaking paper entitled“Goals-based Investing: Integrating
Traditional and Behavioural Finance” we introduced our
first goals-based strategies in the UK.
The Study of
Behavioural Finance
In 2002, Professor Daniel Kahneman, of Princeton
University, won the Nobel Prize for Economics,
based on his work in the area of behavioural finance.
Kahneman and others put modern portfolio theory
to task by studying how investors actually think and
behave,ratherthanhowfinancialtheoriesandtheorists
suggest they should behave.The study of behavioural
finance has challenged the very foundation of modern
portfolio theory, for once abandoning the assumption
that investors are always rational.
The work of Kahneman and others helped form the
basis for a new approach that is focused more on
achieving investors’ specific financial goals.
Unlike modern portfolio theory, where the goal is to
manage the trade off between risk and its expected
return, behavioural finance can help explain why
many investors tend to buy high and sell low.
Redefiningthe
InvestmentApproach
SEI’s work in this area led to a belief that not all investors
make decisions based on the trade off between risk
(standard deviation) and return.Aggressive investors,or
those with long time horizons, may desire a portfolio
with risk defined relative to broad equity and fixed-
income markets—electing a point along an efficient
frontier to capture the returns of equity and credit.
However, a more conservative investor, or one with
a more time-sensitive goal, may not want always to
assume the full risk of global equity and fixed-income
markets. This investor’s concept of risk is a one-way
street (unlike standard deviation),with the emphasis on
the downside. More conservative investors view risk
in terms of how much money can be lost. Risk, in this
sense, is more absolute than relative. SEI’s goals-based
investment strategies were designed to account for
such differing needs and views of risk.
Goals-based investing redefines investment objectives.
Rather than using measures of return and standard
deviation to define success, results are instead
measured in terms of the investor’s ability to meet
personal financial goals. Risk is viewed in terms of the
probability of falling short of those goals, as opposed
to simply outperforming or under performing a
benchmark index.
Goals-based investing is a more intuitive approach
for investors because it centres on meeting tangible
objectives. The focus changes from exceeding the
return of a given benchmark to achieving the tangible
- the pursuit of specific and personal goals.A portfolio
solution tailored to better align with an investor’s view
of a goal and measure of risk becomes more easily
understood and relevant, leading to more meaningful,
personal discussions of wealth management.
Because goals-based investing incorporates the
principles of behavioural finance, it can help change
investor behaviour by creating a more rational
framework for expectations. It can also help investors
avoid traditional mistakes,such as making snap decisions
to pull out of the markets during volatile periods.
When the focus is on a particular financial goal,and not
on a benchmark return,investors may be more likely to
ignore the many whims of the market.
SEIatthe Forefront of
Goals-based Investing
While SEI was an early proponent and early adopter
of goals-based investing, we did not completely dismiss
modern portfolio theory. Instead, we believe that
traditional financial theory and behavioural finance
need not be an all-or-nothing proposition;there is value
in both approaches.
However,the long-held industry practice of aggregating
all client financial assets into a single portfolio, and then
measuring the success of that portfolio relative to a
given benchmark, was replaced by a more focused
approach. Since investors have multiple financial
objectives with differing time horizons that have varying
degrees of importance, financial assets are instead
broken out in separate portfolios, specifically designed
to meet an individual goal.
In this context, the measure of risk that guides our
allocation process will vary across our portfolios, as we
view risk as relative to the ultimate goal.With the tenth
anniversary of SEI’s first goals-based offering getting
closer, we are pleased to remain at the forefront of
this not-so-new type of investing — delivering practical
strategies to help investors achieve their personal
financial objectives. ■
The information and opinions herein are the views of SEI. If you
would like to discuss goals based financial planning call us now and
book an appointment for review.

9. www.successiongroup.co.uk 09
It’s nowthreeyears since student finance in Englandwas radically overhauled
with universities in Scotland and Wales similarly affected.yet myths, panic and
confusion are still widespread. Success Magazine steers clear of the politics to
focus onthe practical impact on students’ pockets.
PAYINGFORUNIVERSITY
HOWTOFUND
UNIVERSITYCOSTS
A university education is priceless. But today,
parents and students know exactly how much it
costs. Tuition fees of up to £9,000 a year for full-
time students (and £6,750 a year for part timers)
as well as accommodation and living expenses
(including food, travel and leisure) of more than
£12,000 outside London and more than £13,000 in
the capital (source: NUS.org.uk).
For a typical three year degree course, the cost will
be at least £63,000, and according to the Money
Advice Service, the average student now expects
to graduate with £39,000 of debt. But it may be
a price worth paying. According to the Office for
National Statistics, graduates will earn £12,000 a
year more than those without a degree. While the
Government insists that 60% of students will be
able to clear their debt through the course of their
working lives, 85% will never repay their student
loans according to research conducted for the Mail
on Sunday in 2013.
Parents will inevitably bear some of the cost burden
of a child’s university education. After all, education
and childcare have remained the biggest single
expenditure for parents, with the costs doubling
over the last ten years.
So what do you need to know if your child is about
to embark on higher education? And when should
you start planning to support them?
PAYING FOR UNIVERSITY
The good news is that students don’t have to pay
university fees upfront. They can get a tuition fee
loan to cover the full cost, which is paid directly
to the university or college. The loan does not
have to be repaid until the course is finished
and the borrower is earning more than £21,000
a year. If they never earn more than that, they
won’t have to repay a penny. However, interest
accrues at 3% above inflation as measured by
RPI even while they are studying. And once
earning, the interest rate is dictated by their
salary bracket.
Student loans are still the most cost-effective way
to fund university. The interest rate is competitive
compared to a bank or building society loan and
the Government has agreed to wipe out any unpaid
loans after 30 years.
Scholarships and bursaries are available from most
colleges and universities and details can be found on
thecompleteuniversityguide.co.uk
Students may be able to apply for a maintenance
loan to help pay for everyday expenses such as
food, travel and accommodation. It gives the average
London student around £7,750, while students
elsewhere in England receive around £5,550. The
loan is partly means-tested and is repaid in the same
way as the tuition fees loan.
There is a shortfall and the chances are that you as
a parent or grandparent may have to help fund it.
HOW YOU CAN HELP
Working out a financial plan that can help your child
manage their university finances will be a valuable
exercise. Just like your own financial plan, they will
need to write a list of all the income they’re likely to
receive and when they’ll get it,and then do the same
for all outgoings, including phone bills, clothes, rent
and food.Then you should be in a position to work
out how much they have to live off each month.
They will need other financial services too. A good
student bank account with a generous interest-free
overdraft facility is a must, contents insurance is
essential although it might be more cost-effective to
add their Uni possessions to your own home policy
rather than taking out a specific student insurance.
Talk to your Succession Group Financial Planner
about your household insurance.
You could consider helping your children through
university by purchasing a property for them to
live in and as an investment for you. Again your
Succession Group Financial Planner can advise you
on the most appropriate mortgage options available.
SAVING FOR UNIVERSITY
Building up the sums of money that a university
education entails requires some forward planning to
ease the burden.
Your Succession Group Financial Planner may have
already discussed your children’s or grandchildren’s
higher education costs as part of your life goals.
Even with the simplest of savings plans, you would
be looking at investing £91 per month from the day
your child was born (assuming a gross annual interest
rate of 3.5%) to achieve £27,000 - the amount
needed to meet three years’ worth of tuition - by
the time they turn 18. If you don’t start saving until
your child turns 10, you would need to save £245
to reach the same target (source: Money Advice
Service savings calculator). ■
If you would like to discuss how to fund university costs
call us now and book an appointment for review.

10. 10 www.successiongroup.co.uk
housing
recoveryLucian Cook, Director of Residential Research
for Savills looks at the UK’s housing market.
Conjuring Up a Housing
Market Recovery
The speed of recovery in the UK housing market in
2013 took most analysts by surprise. On the one
hand conjuring up a housing recovery has positive
benefits for consumer sentiment and the wider
economy. On the other, the experience of 2013 has
also caused economists and politicians to express
their concerns over the threat of a new housing
bubble forming.
Certainly what we saw in 2013, is quite different in
nature to the short lived bounce in 2009 and 2010,in
that it has been accompanied by a more meaningful
improvement in transaction levels and mortgage
lending. There are strong indications that prices,
transaction levels and mortgage lending will continue
to increase in the short term at least.
RATE RISES?
What then is the risk prices will rise to such a degree
that future interest rate rises cause severe financial
stress across overly indebted households?
Our annual valuation of the value of UK housing
stock provides insight into these issues. Overall the
value of UK housing stock rose to £5.2 trillion at the
end of 2013.While it rose by £186 billion over the
course of the year, it is still some £344 billion below
the value in 2007.
Perhaps more instructive is the geographical
distribution of growth. Although almost all other
regions saw growth in the value of their housing stock,
London continued to lead the way.
However, across London there has been a big
variation. The value of housing stock in the boroughs
of Kensington and Westminster may be 15% more
than that of Wales but in percentage terms the
biggest value growth was in the boroughs of Hackney,
Lambeth and Wandsworth. Here growth, that has
been well into double-digit territory, has been fuelled
by high levels of domestic equity, much less so
mortgage debt.
At the other end of the scale Newham,one of Britain’s
most indebted housing markets, saw price growth of
just 3.9%. In this borough the value of housing stock
has risen £1.2 billion in five years, less than 10% of the
gains seen in, say, Islington.
Geography Lessons
Beyond London the pattern has been repeated. The
markets showing the most growth over the past
five years have been the likes of Elmbridge, Brighton
& Hove, St. Albans and Guildford, all affluent and all
attracting plenty of equity. On this basis it is not
surprising that Aberdeen,Bath and NE Somerset were
amongst the highest risers in 2013.
Of course there is a wide disparity between the best
performing areas within and outside of London. In
2013 the value growth of London’s 10 most valuable
boroughs at £55 billion was four and a half times that
seen in the 10 local authorities that saw the biggest
value growth beyond the capital.
It is clear that equity is driving the recovery, something
which we expect to continue though with different
equity rich markets in different regions leading
performance at different times during the recovery.
Theroleofequityisnotconfinedtodifferentgeographical
areas but also has relevance to different segments of the
market. Across the UK housing market as a whole the
level of equity (as opposed to mortgage debt) is high.
Outstanding mortgage debt stands at £1.27 trillion –
roughly one quarter of the value of housing.
Debt pays the smallest part in the rented sector. That
means a lot of the housing occupied by our younger
households is relatively lowly geared in a private rented
sector now worth just short of £1 trillion.
That figure has increased by £277 billion over 5 years.
By contrast during this time the value of housing stock
in the mortgaged owner-occupied market has fallen by
£172 billion reflecting a significant ongoing shift in the
distribution of housing wealth between generations.
Market Segments
None of this means that the market is entirely free
of risks from increases in interest rates. Even though
levels of lending at high loan to value ratios has been
heavily constrained post credit crunch, in that part
of the housing market where there are mortgages,
loan to income ratios are relatively high.
Amongst these mortgaged owner-occupiers the
level of mortgage debt accounts for 54% of the total
value of stock owned, up from 43% ten years ago.
So we are left with a housing market that continues
to be driven by equity rather than debt, one
where future price growth is likely to be greatest
in equity rich markets, where transaction levels are
constrained in the lower rungs of the housing ladder
in which debt requirements are greatest but which is
still sensitive to future interest rate rises. ■
The information and opinions expressed herein
are the views of Savills.

11. 900 years and counting. Foot Anstey’s Steven Howells writes exclusively
for Success Magazine about why trusts are still hugely relevant, given the
complexities of family life.
THELASTWORD:
Trusts,notdeadyet!
Born in the 12th century, when Crusaders
transferred their estates to others to hold for them
during their absence, trusts have since become an
intrinsic part of the way that we live our lives today.
We see them all around us: in the co-ownership
of land; in the way that we provide for vulnerable
people; the way that finances are arranged on
second marriages and new relationships; as well
as their use in conjunction with broader wealth
preservation and investment strategies.
Over the last few decades though, successive
governments have sought to attack trusts through
the use of taxation. In the early 1970’s, they were
viewed as tax avoidance devices for wealthy families
wishing to escape the exceptionally high rates of
income tax in force at the time, and as such the
Additional Rate of Tax was introduced - with the
income of discretionary trusts and the suchlike being
taxed at much higher rates. History repeated itself
at the turn of the last century when the incumbent
Paymaster General was revealed to have an interest
in a tax free offshore trust valued at £12.5 million.
As a consequence, the way that UK residents were
taxed on their interests in offshore trusts changed
radically. Likewise, in 2006, that year’s Finance Act
again introduced sweeping measures to dissuade
people from putting too much into trust under an
all-encompassing banner of“harmonisation”.
Taking all of this in the round then, we can conclude
that (a) trusts are not going anywhere,anytime soon;
and (b) the only effective way for Parliament to attack
them is to change the way that they are taxed from
time to time.So where does this leave us?
Two words: flexibility and review. We need
structures which are flexible enough to adapt to an
ever changing taxation environment and evolving
family circumstances. We need to review what we
have and question whether, in their current form,
existing family trust structures remain appropriate.
Take the examples below:
Insurance products
written intrust
Many people have bought investment / insurance
products over the years and transferred them into
trusts for family members. Usually – but not always
– a single premium product,many families I deal with
have had these for decades.Absolutely the right tax
planning devices at the time,and in many cases,there
have been significant InheritanceTax savings.
But – don’t just look at the investments; look at the
trust which wraps around it.What is the impact of that
trust on your beneficiaries, who in all likelihood may
not now be far from the age you were when you
did your tax planning! Do those trusts need to be
“moved on” a generation? Are those trust wrappers
still fit for purpose?
Existing discretionary
trusts
Mitigating tax is all well and good, but replacing tax
with cost is another thing all together. Many families
have discretionary trusts, established for one reason
or another. With income being taxed at higher
rates, tax returns, accounts and beneficiaries usually
having to complete tax reclaim forms as well, it’s not
surprising that cost and complexity becomes a major
source of irritation.
But – need the status quo remain? In many cases,
trustees could give one or more beneficiaries
a revocable interest in possession. Those
beneficiaries would then be able to receive the trust
income net of the standard rates of tax (10% or 20%)
as opposed to the trustees’ rates (37.5% or 45%).
Such a move can often simplify trust arrangements,
as well as improve beneficiary cash flow and reduce
administrative cost. Depending on the underlying
investments, an annual tax return may not even be
necessary in future years.
Mitigating Capital
GainsTax
A consequence of a successful investment portfolio
is often a potential liability to Capital Gains Tax and
the effect that has on a client’s investment philosophy.
Trustees are generally taxed on their gains at the rate
of 28% but there can often be ways of mitigating this
– if families are willing for wealth to be held outside of
the protective wrapper of a more conventional trust.
Bare trusts are trusts where the beneficiaries are
absolutelyentitledtotheassets.Usuallyusedforchildren,
the downside is that the beneficiary can demand the
trust assets at the age of eighteen,but the upside is that
they can be an effective way of utilising a child’s possibly
unused income and capital gains tax allowances.
Nine hundred years in, they’re still here, and still
hugely relevant – maybe more so than ever before,
given the complexities of modern family life.Many are
absolutely fine, and wholly fit for purpose, but some
may no longer be: a periodic review could pay huge
dividends over the longer term! ■
www.successiongroup.co.uk 11
The information and opinions expressed herein are the views of Foot
Anstey. If you would like to find out more about trusts call us now
and book an appointment for review.

12. Head Office
Succession Group Limited
Drake Building, 15 Davy Road,
Plymouth Science Park
Derriford, Plymouth, Devon PL6 8BY
Tel: 01752 762140
Email: info@successiongroup.co.uk
This magazine has been written for information purposes only and does not constitute advice or a personal recommendation. It does not take into account the particular
investment objectives, financial situations or needs of individuals.The information and opinions expressed in the articles are those of the relevant authors and based on
information which they believe to be reliable.They do not represent that they are accurate or complete and they should not be relied on as such. Any information is given
in good faith but is subject to change without notice. No liability whatsoever is accepted by Succession Group Ltd.