The Value of Annual Reviews
Investment performance has picked up over the last 12-16 months or so with returns from our low cost balanced fund exceeding 11%* over the last 12 month period. These returns are welcome after a prolonged period of disappointing results.
However with every silver lining comes a cloud! So, what is perplexing us folks here at Fathom? Well we’ve had a number of clients decline their annual reviews because they are happy with the way their investments have performed over the last 12 months. This gives us cause for concern because 1/ we miss you and 2/ annual reviews are an important part of our ongoing advice process.
How so when things are going well I hear you ask..?
The annual review process is our opportunity to revisit the advice that we originally gave you and make an assessment about whether that advice still meets your ongoing needs. It allows us to review your retirement plans (for those who are both accumulating and decumulating), discuss your short, medium and long term goals and adjust your strategy as appropriate. This could simply be an opportunity to review your risk profile, the level of withdrawals you make, consolidating gains or talking about strategy, for as sure as God made little green apples markets falter and they inevitably will in the future.
The annual review also gives us the opportunity to discuss what we will do when this happens, how to handle inheritances (both giving and receiving), even something as mundane as checking your tax code and generally getting an annual snapshot of your situation. Sometimes a lot can happen in a year and sometimes nothing of significance happens at all. You might just want to discuss making a Will or ensuring that your property ends up in the hands of your loved ones. At the very least, the annual review is a good opportunity to check that you are on track in relation to your personal financial goals.
At Fathom we find it useful to have an annual catch-up and remind you of what you have with us. Our mantra is that our clients should:
“Know what they’ve got and why they’ve got it!”
If the above hasn’t convinced you to book your annual review when we call (if you usually visit the office) you’ll also get the opportunity to reacquaint yourself with Bohdi and Archie the fearsome Cockapoos, who undoubtedly will greet you with their Rottweiler like barking but will then proceed to attempt to lick you to death.
Hope to see you soon..
*average return 01/08/23-31/07/24 from a review of selected client accounts
This blog is for information purposes and does not constitute financial advice, which should be based on your individual circumstances.
The value of investments and any income from them can fall as well as rise. You may not get back the full amount invested.
Past performance is used as a guide only; it is no guarantee of future performance.
