The thing is that “simple” is not always easy.

Often we meet people who think that they know what they want from us, however as our relationship develops and trust builds, their requirements often evolve into something quite different.

Initially a client might feel they should be seeking advice on achieving the best investment returns available. While it is only natural to feel this way how does one define “best”? We believe that it is impossible to do so unless and until both the client and Financial Planner have a clear understanding of the purpose of the investment.

So if we are completely candid, we have to admit that we don’t always know what our clients really want. On the other hand, we do believe that we have a pretty good idea of what our clients need:

• Help in understanding their current position and what their existing investments, pension plans etc add up to in the context of their financial and lifestyle goals
• A clear idea of the actions that they need to take, and the compromises they might need to make, in order to achieve those goals
• Help in making smart financial decisions, avoiding the dumb ones and staying the course when things get rough
• Peace of mind (we know it’s a cliche but that’s what good Financial Planning is all about)

If these needs resonate with you it is likely that you will gain some real benefit from the Fortitude Financial Planning process.

“You can’t always get what you want
But if you try sometimes you might find
You get what you need”
The Rolling Stones

This post was prepared by Chris Bowmer. If you like what you read, why not follow him on Twitter?

The book is a memoir of her own life and how it was transformed through the regrets of the dying people she cared for. It is based on her original blog Regrets of the Dying, which I have copied below.

 

What has this got to do with Financial Planning you might ask?

Well, quite a lot actually. Financial Planning involves working out your goals in life. Then, by adding timescales and costs, you can work out how to get where you want to be by planning your finances accordingly.

The standard Fortitude Financial Planning process has always included an element of coaching where we help you to identify, quantify and prioritise your financial and lifestyle goals. The majority of our clients find this approach very helpful, as it provides a more personal context for the important financial decisions they need to make.

For some clients though, Financial Planning alone is not enough. While they might approach us with specific financial goals in mind (e.g. ‘I want to stop work when I’m aged 60′) they have rarely given a great deal of thought to what they will do next. Many are financially successful people, but they are not as content as they would like to be. They have plenty of financial resource and plenty of “stuff”. Nevertheless they feel that they are missing out on something and cannot quite put their finger on what it might be. Others may have a vague idea about what it is, but cannot see the way to reach it.

These clients need help to discover what they really want from life and at Fortitude we are developing the skills to do exactly that. I will shortly complete a period of mentorship with the Kinder Institute of Life Planning. The Kinder Institute trains and coaches financial advisers worldwide in a method called Financial Life Planning. This method is based on the premise that advisers should first discover a client’s most essential goals in life – their “hearts core” – before formulating a Financial Plan, so a client’s finances fully support those goals. This may sound elementary but few of us spontaneously undertake a thoughtful inquiry into our deepest and most enduring values and objectives.

If you take the time to read Bronnie’s blog you will find that the common regrets are based around missed experiences, feelings, friendships and relationships.

This is not so surprising when you think about it. It was my birthday recently and, as I often do at this time of year, I reflected on the highs and lows of the previous year. Guess what, the highs all involved memorable experiences with people I care about (and memorable does not necessarily mean expensive or even exciting); a meal with family and friends when I proposed to Helen, my son’s 18th birthday, getting my son settled into his University accommodation and an evening with friends watching their son performing in his band.

Why don’t you try it for yourself? Think about the last 12 months. Which memories provide the greatest source of happiness? What is it about those experiences that makes them so special? Would you like to have more of these experiences? What’s stopping you?

I found Bronnie’s blog very moving, but what really saddens me is that so many people only discovered what was really important when it was too late for them to do anything about it.

****REGRETS OF THE DYING, by Bronnie Ware****

For many years I worked in palliative care. My patients were those who had gone home to die. Some incredibly special times were shared. I was with them for the last three to twelve weeks of their lives.

People grow a lot when they are faced with their own mortality. I learnt never to underestimate someone’s capacity for growth. Some changes were phenomenal. Each experienced a variety of emotions, as expected, denial, fear, anger, remorse, more denial and eventually acceptance. Every single patient found their peace before they departed though, every one of them.

When questioned about any regrets they had or anything they would do differently, common themes surfaced again and again. Here are the most common five:

 1. I wish I’d had the courage to live a life true to myself, not the life others expected of me

This was the most common regret of all. When people realise that their life is almost over and look back clearly on it, it is easy to see how many dreams have gone unfulfilled. Most people had not honoured even a half of their dreams and had to die knowing that it was due to choices they had made, or not made.

It is very important to try and honour at least some of your dreams along the way. From the moment that you lose your health, it is too late. Health brings a freedom very few realise, until they no longer have it.

2. I wish I didn’t work so hard

This came from every male patient that I nursed. They missed their children’s youth and their partner’s companionship. Women also spoke of this regret. But as most were from an older generation, many of the female patients had not been breadwinners. All of the men I nursed deeply regretted spending so much of their lives on the treadmill of a work existence.

By simplifying your lifestyle and making conscious choices along the way, it is possible to not need the income that you think you do. And by creating more space in your life, you become happier and more open to new opportunities, ones more suited to your new lifestyle.

3. I wish I’d had the courage to express my feelings

Many people suppressed their feelings in order to keep peace with others. As a result, they settled for a mediocre existence and never became who they were truly capable of becoming. Many developed illnesses relating to the bitterness and resentment they carried as a result. 

We cannot control the reactions of others. However, although people may initially react when you change the way you are by speaking honestly, in the end it raises the relationship to a whole new and healthier level. Either that or it releases the unhealthy relationship from your life. Either way, you win.

4. I wish I had stayed in touch with my friends

Often they would not truly realise the full benefits of old friends until their dying weeks and it was not always possible to track them down. Many had become so caught up in their own lives that they had let golden friendships slip by over the years. There were many deep regrets about not giving friendships the time and effort that they deserved. Everyone misses their friends when they are dying.

It is common for anyone in a busy lifestyle to let friendships slip. But when you are faced with your approaching death, the physical details of life fall away. People do want to get their financial affairs in order if possible. But it is not money or status that holds the true importance for them. They want to get things in order more for the benefit of those they love. Usually though, they are too ill and weary to ever manage this task. It is all comes down to love and relationships in the end. That is all that remains in the final weeks, love and relationships.

5. I wish that I had let myself be happier

This is a surprisingly common one. Many did not realise until the end that happiness is a choice. They had stayed stuck in old patterns and habits. The so-called ‘comfort’ of familiarity overflowed into their emotions, as well as their physical lives. Fear of change had them pretending to others, and to their selves, that they were content. When deep within, they longed to laugh properly and have silliness in their life again.

When you are on your deathbed, what others think of you is a long way from your mind. How wonderful to be able to let go and smile again, long before you are dying.

 Life is a choice. It is YOUR life. Choose consciously, choose wisely, choose honestly. Choose happiness.

For more information, please visit Bronnie’s official website at www.bronnieware.com or her blog at www.inspirationandchai.com.

This post was published by Neil Bailey. If you like what you read, why not follow him on Twitter?

Owner managers, who plan to sell their business in the future for its maximum value need 3-5 years to plan and prepare. Do you know how much your business is worth and is it enough to be financially independent during your retirement?

At this event you will learn

• How to value your business
• How Lifetime Cashflow planning can help you
• The selling process
• Top tips on how to sell your business
• Pitfalls of entrepreneurs relief
• How to preserve your wealth

Event Details

Date: Thursday 9th February 2012

Times: 8.30am -11.00am

Venue: Doubletree by Hilton, MK Dons Stadium

Cost: Free Seminar with an optional free stadium tour afterwards

To view the agenda online, Click Here

Speakers

Adrian Todd, CMC Partners

Chris Bowmer and Tim Davison, Fortitude Financial Planning

Mark Rayner, Keens Shay Keens MK

Kick start your planning by attending this event and maximise your business worth. Book today as places are strictly limited. Click here to book your place.

When we re-launched our website, we not only decided to include a child and superhero theme, but a selection of BEHAVIORGAP.COM images. These are actually sketches drawn by Carl Richards who, like us, believes in presenting complex concepts in a way that is easy to understand.

Carl is a Certified Financial Planner^CM (just like Chris and Neil) and is the founder of Prasada Capital Management, based in Park City, Utah. His clients share two objectives: to not lose money and to enjoy their lives to the fullest. Carl is also a regular contributor to the New York Times.

When we discovered Carl’s website we noticed that we share a number of similar beliefs about the importance of ensuring that our clients have a proper Financial Plan in place in order to provide a framework to help make smart financial decisions (or at least avoid the dumb ones).

You can find more of Carl’s deceptively simple images on his website: www.behaviorgap.com/sketch

We were excited to hear that Carl has recently published his first book. We’ve ordered a copy for the office and the team are really looking forward to reading it.

If you like what you see and would like to purchase a copy of the book, you can do so online here. Enjoy!

Our Planners have enjoyed getting into the groove for Christmas and because the Support team work like elves all year helping our clients, we thought each video was quite fitting. To play the video use these links Financial Planners get into the groove and Elves in the Support team.

We hope this brought a smile to your day – we’ve had a lot of fun here in the office!

Have a wonderful Christmas and we look forward to seeing you in the New Year.

Many of you, who have known Neil and Helen for a long time, have asked for proof that they finally married!  We can confirm they indeed did (photographic evidence below). The wedding was held at the end of September, when they were incredibly lucky to have timed the celebrations for the midst of the mini heatwave we all enjoyed.

Helen and Neil would like to thank everyone for their good wishes.  They are really looking forward to their honeymoon in Australia (the most beautiful country on earth, I would argue, given I’m Australian) when they will experience the delights of Melbourne and Tasmania in February.

Finally the office will be closed for the bank holidays on 26th and 27th December and 2nd January.

We are looking forward to working with you in the New Year and to the new challenges and opportunities that 2012 will bring.  Have a very Happy Christmas!

Remember, if you need anything at all, please don’t hesistate to get in touch.

NB: This post was uploaded by Abbie Tanner, our Marketing Director and token Australian.

As part of our commitment to strengthening our relationships with solicitors and accountants, we are members of Solicitors Independent Financial Advice (SIFA).

Below is an extract from an article posted in the Business Times last year, outlining our SIFA membership and the benefits.

Firm strengthens professional relationships, Business Times

Established in 1992, SIFA provides support to advisers working with the professions (solicitors and accountants) to ensure a quality of relationship between the financial planner and the solicitor or accountant for the benefit of the clients of both.

Neil Bailey, Director at Fortitude said: “Our relationship with our professional contacts is very important to us and we believe that joining SIFA will help us to strengthen these relationships at a critical time.

“The Legal Services Act 2007 will change many things about the way legal practices work and having been through a similar period of change ourselves, we believe we can help broaden the appeal of the services that lawyers provide for their clients.”

Commitment to professional relationships

Fortitude’s commitment to professional relationships is clear - Chris Bowmer has recently become an affiliate of STEP (The Society for Trust and Estate Practitioners) by examination, and Neil has been accepted as an affiliate member of Resolution, an organisation of 5,700 lawyers who believe in a constructive, non-confrontational approach to family law matters.

Both Chris and Neil are Chartered Financial Planners and Certified Financial Planner^CM (CFP) professionals.

The CFP^CM mark represents financial planning’s highest professional standard and is the global symbol representing excellence in financial planning.

If you would like to find out how you can benefit from working with the team here at Fortitude, please get in touch.

What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding the framework.

Source: Flickr - Josef Grunig

At Fortitude, we agree with this point of view and have developed our own sound intellectual framework, which is based on six key guiding principles:

1. You must have a plan
Investment decisions should only be made in the context of a financial plan, which identifies the return that you need from your investments in order to achieve your financial goals. The investment strategy should be designed to generate the returns required to achieve those goals with the least risk to your capital.

2. Risk and return are closely related
You cannot achieve a higher return without taking on more risk – there is no such thing as a free lunch.

3. Diversification is an essential means of managing risk
Investment portfolios should be diversified across asset classes and markets.

4. Asset allocation determines portfolio performance
Deciding what proportion of a portfolio should be invested in each of the key asset classes is the main factor in determining how an investment portfolio will perform.

5. Investment markets are efficient enough
Trying to beat the markets by using expensive, actively managed funds inevitably involves taking on more risk, which is rarely justified by the corresponding gains . Again, Warren Buffet agrees with the principle, stating in a letter to his own shareholders in 2007: Most investors, both institutional and individual will find the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals.

6. Costs matter
Charges and taxes can have a serious impact on your wealth. The charges applied by the majority of investment funds are eye-wateringly big.

Fortitude Financial Planners do not have access to a crystal ball. What we do have is an efficient and effective process which helps our clients to make smart investment decisions.

Somehow as we grow older we lose this ability. Many of us have a “dream of freedom” which we keep locked away deep inside us. If we do not nurture that dream and give it a voice it too often becomes our “secret sorrow”.

At Fortitude we believe that everyone should have the opportunity to spend some time to give a voice to those things that are important to them. More often than not we find that the constraints and boundaries are self-imposed. When we dare to dream we take the first step on the journey that will take us to where we want to be.

So we use these images to remind us that we are all capable of taking the hero’s journey. All we need is the fortitude to give an honest answer to the question “what do you want to do with your life?”. Below are a series of quotes, which we hope will inspire you to step out of your comfort zone and turn your dreams into a reality. Go on. Start the journey today.

“If one advances confidently in the direction of their dreams, and endeavors to lead a life which they have imagined, they will meet with a success unexpected in common hours.”
Henry David Thoreau

“Twenty years from now you will be more disappointed by the  things you didn’t do than by the ones you did. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in  your sails. Explore. Dream. Discover.”
Mark Twain

“Far better is it to dare mighty things, to win glorious  triumphs, even though checkered by failure…than to rank with those poor spirits who neither enjoy much nor suffer much, because they live in a gray  twilight that knows not victory nor defeat.”
Theodore Roosevelt

“It is not because things are difficult that we do not dare,  it is because we do not dare that they are difficult.”
Seneca

“All men and women are born, live suffer and die; what  distinguishes us one from another is our dreams, whether they be dreams about  worldly or unworldly things, and what we do to make them come about… We do  not choose to be born. We do not choose our parents. We do not choose our historical epoch, the country of our birth, or the immediate circumstances of  our upbringing. We do not, most of us, choose to die; nor do we choose the time  and conditions of our death. But within this realm of choicelessness, we do  choose how we live.”
Joseph Epstein

“Some men see things as they are and ask why. Others dream things that never were and ask why not.”
George Bernard Shaw

“Whatever you can do or dream you can, begin it. Boldness has genius, power, and magic in it. Begin it now.”
Johann Wolfgang von Goethe

What are you favourite inspirational quotes? Email us or Tweet @Fortitude_Neil or @Fortitude_Chris and we’ll publish them to our blog.

It was Charles Dickens who, in his novel David Copperfield, introduced us to the character Wilkins Micawber who observes “Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

With Christmas approaching there is merit in applying the Micawber Principle to our own budgets because planning to spend less than you earn is one of the basic principles of good Financial Planning.

As with other aspects of life, Financial Planning is a series of choices and consequences.  Many of our clients tell us that their long-term goal is to achieve and maintain a degree of financial independence. This happy state requires money, which means that either you must work forever or you must save up from your income to create wealth to spend later.

One never knows how long you will need your resources for but there are some rather scary statistics available. For example it has been estimated that 50% of all those people in history who ever reached age 65 are still alive today and life expectancy is increasing all the time.

Throughout our lives there will be many calls on our financial resources, which means that it is important that we plan and prioritise our spending.

Christmas is one of the key times when spending needs to be controlled so that our limited financial resources are not wasted. Why buy more food than you need?  Why buy toys the children will not play with; indeed why buy most of the “things” that tend to clutter up our lives. Keeping up with the Jones’s means that you focus on what you have not got rather on the things you have and this creates unhappiness (and usually large debt for both you and the Jones’s).

Recent research concludes that “things” have the capacity to make you happy for only a very short time. It is experiences and relationships which make people happy for the long term. Therefore we should focus precious time and effort, rather than just money, on family and friends – and do that throughout our lives, not just at Christmas.