4 life-stages in wealth planning
As our client we will work with you directly to build a financial plan that works for you, in the long term, as you progress through changing life stages. With this in mind we work to our client segmentation which allows us to tailor our service to your specific requirements throughout your financial journey.
Within the provision of financial advice, we also recognise that every client is different and thus we can offer Transactional or one‐off advice. This would include a straightforward advisory service centred on your financial goals and objectives that require focused analysis and recommendations with limited ongoing servicing.
YOUR TIMELINE
What life stage are you?
At AMFA, we are here to help UK retail clients navigate the income accumulation cycle, which is divided into four stages: Accumulator, Consolidator, Optimiser, and Preserver. Let’s explore each stage and some financial planning products that may be applicable.
LIFE STAGE 1 ACCUMULATOR
Clients in the Accumulator stage are typically early in their careers and focused on building their assets for the future.
At this stage, Accumulators may benefit from:
- Workplace pension schemes – These are a great way to start building a retirement nest egg, with contributions taken directly from the client’s pay and benefiting from tax relief
- Individual Savings Accounts (ISAs) – These are tax-efficient savings accounts that offer a range of investment options, including stocks, shares, and cash
- Emergency savings accounts – These can provide a cash reserve to cover unexpected expenses or income gaps, providing peace of mind
- Mortgage payments – Making regular mortgage payments can help build equity and provide long-term financial stability, with the added benefit of owning a property
LIFE STAGE 2 CONSOLIDATOR
During the Consolidator stage, clients have started accumulating assets and are focused on consolidating their investments to ensure they are well-diversified and aligned with their financial goals.
At this stage, Consolidators may benefit from:
- Investment portfolios – A diversified portfolio of investments designed to meet the client’s risk tolerance and financial goals
- Property investments – Investing in property, either directly or through a Real Estate Investment Trust (REIT), can provide diversification and potential long-term growth
- Life insurance – A life insurance policy can provide financial protection for the client’s loved ones in the event of their untimely death
- Wills and estate planning – Having a will in place can ensure that the client’s assets are distributed according to their wishes and can help to minimize tax liabilities
LIFE STAGE 3 OPTIMISER
During the Optimiser stage, clients are focused on optimising their income and ensuring they have a reliable income stream in retirement.
At this stage, Optimisers may benefit from:
- Annuities – A type of insurance product that can provide a guaranteed income for life
- Drawdown plans – A flexible way to take income from a pension fund, which can be adjusted to meet changing financial needs
- Long-term care insurance – This can help cover the costs of long-term care if the client develops a chronic illness or disability
- Equity release – A way to release equity from a property to provide a tax-free lump sum or regular income in retirement
LIFE STAGE 4 PRESERVER
During the Preserver stage, clients are focused on preserving their wealth and passing it on to future generations.
At this stage, Preservers may benefit from:
- Trusts – A legal arrangement that can help to preserve wealth for future generations and provide tax benefits
- Inheritance tax planning – A strategy to minimize the impact of inheritance tax on the client’s estate
- Philanthropy – A way to give back to society while also potentially reducing the client’s tax bill
- Family succession planning – This can help ensure that the client’s business or other assets are passed down to the next generation in a tax-efficient manner
- Accumulator
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LIFE STAGE 1 ACCUMULATOR
Clients in the Accumulator stage are typically early in their careers and focused on building their assets for the future.
At this stage, Accumulators may benefit from:
- Workplace pension schemes – These are a great way to start building a retirement nest egg, with contributions taken directly from the client’s pay and benefiting from tax relief
- Individual Savings Accounts (ISAs) – These are tax-efficient savings accounts that offer a range of investment options, including stocks, shares, and cash
- Emergency savings accounts – These can provide a cash reserve to cover unexpected expenses or income gaps, providing peace of mind
- Mortgage payments – Making regular mortgage payments can help build equity and provide long-term financial stability, with the added benefit of owning a property
- Consolidator
-
LIFE STAGE 2 CONSOLIDATOR
During the Consolidator stage, clients have started accumulating assets and are focused on consolidating their investments to ensure they are well-diversified and aligned with their financial goals.
At this stage, Consolidators may benefit from:
- Investment portfolios – A diversified portfolio of investments designed to meet the client’s risk tolerance and financial goals
- Property investments – Investing in property, either directly or through a Real Estate Investment Trust (REIT), can provide diversification and potential long-term growth
- Life insurance – A life insurance policy can provide financial protection for the client’s loved ones in the event of their untimely death
- Wills and estate planning – Having a will in place can ensure that the client’s assets are distributed according to their wishes and can help to minimize tax liabilities
- Optimiser
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LIFE STAGE 3 OPTIMISER
During the Optimiser stage, clients are focused on optimising their income and ensuring they have a reliable income stream in retirement.
At this stage, Optimisers may benefit from:
- Annuities – A type of insurance product that can provide a guaranteed income for life
- Drawdown plans – A flexible way to take income from a pension fund, which can be adjusted to meet changing financial needs
- Long-term care insurance – This can help cover the costs of long-term care if the client develops a chronic illness or disability
- Equity release – A way to release equity from a property to provide a tax-free lump sum or regular income in retirement
- Preserver
-
LIFE STAGE 4 PRESERVER
During the Preserver stage, clients are focused on preserving their wealth and passing it on to future generations.
At this stage, Preservers may benefit from:
- Trusts – A legal arrangement that can help to preserve wealth for future generations and provide tax benefits
- Inheritance tax planning – A strategy to minimize the impact of inheritance tax on the client’s estate
- Philanthropy – A way to give back to society while also potentially reducing the client’s tax bill
- Family succession planning – This can help ensure that the client’s business or other assets are passed down to the next generation in a tax-efficient manner
AT AMFA, WE UNDERSTAND THAT EVERY CLIENT’S FINANCIAL JOURNEY IS UNIQUE. WE TAKE A PERSONALISED APPROACH TO FINANCIAL PLANNING, HELPING OUR CLIENTS NAVIGATE EACH STAGE OF THE INCOME ACCUMULATION CYCLE AND ACHIEVE THEIR FINANCIAL GOALS
Matt Wood
Head of Operations, AMFA
ASK FOR A NO-OBLIGATION CONSULTATION
Call 02380 420 606 for a quick chat or contact us and we can arrange a no-obligation consultation. Whatever life-stage you are at right now, we’d love to help
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