Financial Planning - Step 4
What happens next?
Having considered how to organise your assets so they are doing what they should be for you, you are now in a position to consider what to do with the individual pots of money.
Investor Profile says:
Ensure you have enough money on your cash reserve and short term portfolio to make you feel comfortable.
Consider your long term assets carefully - are they invested in the correct funds, should you be putting more money away?
Make sure you can keep on top of what is happening to your assets. Are your long term investments easy to monitor?
If you need to simplify your investments then do so, but take account of tax or any other financial implications of doing so.
If it makes sense to keep your investments where they are, i.e. for tax or cost reasons, then it’s still important to integrate them into your overall portfolio of investments. It won’t be as easy to monitor them but it’s an important task nevertheless.
Investor Profile offers a service whereby you can include these types of assets in to your overall portfolio for monitoring purposes.
Once all your transfers have been completed it is time to consider what funds are still suitable for your needs. If some or all of the funds need changing and it is the best option for you to achieve long term success, then so be it. Tax and cost implications should always be considered before making any sales, however if the funds are held within an ISA or pension then you need not worry about tax.
Ultimately you want a mixture of investments that will provide you with the sort of return you need to achieve your goals and sits well with your risk profile.
Be sure that if you have regular contributions going in that these are still sufficient. This should be considered as part of the earlier exercise in what you really want and what you need to do to get there.
Once all of that is done then you really can sit back, relax and watch your investments online.
Back to...Step 3 or Read on...Step 5
