Spain Life Exclusive speaks with George Whitby from family-run business, Logic Financial Consultants, to demystify wealth management and gain a better understanding of what they do for their wealth management clients.
Q: Hi George, so tell me what do wealth managers actually do?
A: While some may think that wealth management is just investment advice, it is actually far more than that. It takes into account all aspects of a person’s financial life. This can include money management, investment advice, estate planning, accounting, insurance review, retirement planning, and tax services.
The role of a wealth manager is to analyse a client or couple´s position and advise on how to invest their portfolios and plan their finances to meet their personal financial goals. Using a consultative process, we gather information about a client’s desires and specific requirements. We then develop a personalised strategy utilising our knowledge and expertise, always ensuring that it aligns with the client’s financial circumstances and importantly, risk rating!
Q: And what is the goal of wealth management?
A: The goal and therefore approach to wealth management varies based on the individual aspirations of each client. Ultimately, the aim is to grow, preserve, and strategically transfer client assets in order to achieve their financial objectives. These can include achieving financial security, increasing their existing wealth, preserving capital, optimising tax efficiencies, planning for retirement, enabling estate planning, or a combination of these.
Q: So, as a wealth management client of Logic Financial Consultants, what steps can I expect to be taken through?
A: The Logic Financial Consultants wealth management process can be broken down into the following areas:
Defining the relationship
The initial step involves clearly outlining the roles, responsibilities, and expectations of both the client and ourselves. This includes discussing the scope of the services to be provided, fee structures, and the level of communication and engagement throughout the advisory process. Collaborating with the client is of paramount importance to us. For example, understanding their comfort level with risk tolerance is crucial, especially in relation to various types of investments and market volatility.
Client data gathering and evaluation
The next step would be to collect detailed information about the client’s financial background, including income, expenses, assets, liabilities, and existing investment accounts. This enables us to evaluate its strengths and weaknesses and identify areas for growth or risk mitigation. Alongside this data, we then explore short-term and long-term financial objectives, as well as any specific ethical considerations that need to be taken into account when selecting investment opportunities.
Formulating an investment strategy
Based on the information gathered, we develop a tailored investment strategy that sets out asset allocation. This strategy outlines how the client’s assets will be allocated across various investment categories, including equities, fixed income, real estate, and alternative investments, in alignment with their risk profile and objectives. This includes recommendations on specific investments, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs).
Choosing tax-efficient wrappers
This step involves selecting the appropriate investment vehicles or wrappers (e.g., individual retirement accounts, taxable accounts, or trusts) that can help maximise tax efficiency, optimise after-tax returns, and meet the client’s long-term financial objectives.
Presentation of recommendations
We prioritise ensuring that our clients fully understand our recommendations by presenting them in a clear and concise manner that is free from complicated financial jargon. When we deliver our suggestions, we always explain the rationale behind each one. We address any concerns the client may have and obtain their agreement before proceeding with implementation.
Monitoring and rebalancing
After implementation, we continue to monitor our client’s portfolio to ensure that it remains aligned with their personal objectives and risk profile. This involves regular reviews and discussions about market conditions and/or changes in the client’s individual circumstances. If necessary, we will rebalance the portfolio to maintain the desired asset allocation.
Q: So, how much wealth is needed to make it worthwhile working with a financial adviser?
A: This is a difficult question to answer in truth, as some providers or solutions will be subject to “minimum” investments but ignoring that, I genuinely believe that anyone can benefit from sitting down with a financial adviser to review their position. Although higher net-worth clients may have more complexity and scale to their financial needs, a lower net-worth client also has their own personal goals and objectives and it could be argued that money management is even more important to them. So, in conclusion, I would say that it is not all about “how much wealth” is needed, it is more about the level of help that is required.
Q: And typically, what type of clients does Logic Financial Consultants work with?
A: Typically, we work with expatriates residing in mainland Spain as well as the Balearic and Canary Islands. This includes a diverse mix of individuals, primarily those enjoying a well-earned retirement, as well as professionals who are still actively working.
However, thanks to the advancements in technology, we are also able to remotely connect and collaborate with clients across Europe. This capability allows us to offer our services, regardless of geographical boundaries.
Q: Finally, (and I am sure the answer is ‘yes), but is Logic Financial Consultants held to a fiduciary standard?
A: Logic Financial Consultants operates in accordance with UK best practices and promotes the full disclosure of services and fees. We are individually regulated as advisers at the UK Diploma Status level and are registered with the European Financial Planning Association (EFA) in Spain. As part of the Aisa International network in Europe, we are granted the necessary licences and permissions to operate across Europe, including the IDD licence for insurance and the MIFID II licence for pensions.
Thank you for speaking with us and helping to demystify wealth management for our readers. For those interested in engaging with Logic Financial Consultants or exploring their other services, the company’s contact information is provided below.
Logic Financial Consultants
Address: Calle Andres Lambert 24, 1B, Javea 03730, Alicante
Web: www.logicfinancialconsultants.com
Email: info@logicfc.com
Tel: +34 965 020 444
Mob: +34 634 706 748