Magus Core Services
Wealth planning is like a 3-legged stool - each leg must be robust to ensure the stool is built well and balances properly. The 3 core legs of wealth planning are:
We need to understand you: what makes you tick, what your life looks like when it's the best it can be, the people in your life and how everything fits together in your world. We spend as much time as necessary to build this picture, as this is the first and most important part of the process.
To help you make sense of your finances and your ambitions, we:
- Build your Plan: We use this knowledge about you to create your tailored Private Wealth Plan. In some respects, this is the real start of our relationship: we give you the map for your journey but we don't then abandon you to your own devices.
- Act as your financial coach: Just as a top athlete needs a coach to help them stay the course and perform at peak levels, we work with you throughout your journey. There are regular reviews and check points to recalibrate your compass and ensure you are on track to get to your desired life.
- Turn dreams into reality: We have extensive experience helping clients who may be seeking a different path in life. Often the perception of their financial position and what it will give them is different to the reality. Magus assists you to in making more informed decisions that will help turn your dreams into reality.
- Your other advisers: Many of our clients have an existing team of advisers, such as lawyers and accountants. We work with all your professional advisers to ensure that you only receive joined up and co-ordinated planning advice.
Once you know where you want to be, the next task is to get you there. Your current financial planning may be enough, or you may need to amend, restructure, simplify or consolidate your finances to get you fully on track.
It doesn't matter which stage of life you are at: working and saving for retirement, selling or having sold a business, coming to retirement or already in retirement or you want to manage your inheritance tax situation. All these stages can benefit from our financial and tax planning services.
Advice on your whole financial world: We don't just focus on the aspects of your finances that we directly manage. Not only do we take time to understand you, we equally take time to understand all the different elements (properties, pensions, investments, business assets, etc.) that make up your whole financial world. We are financial planners and as such we take into consideration everything that you have at your disposal to achieve your desired life.
Many people try to build their lives on spreadsheets but can fall foul of the sheer level of complexity of the ever-changing regime that surrounds the UK's financial, investment, pension and tax worlds.
Our financial and tax planning services cover 4 main topics:
- Financial Forecasting: Bringing your whole financial world into one place and graphically showing you how this works. We build & review all your “What if?” scenarios, to ensure you run out of life before you run out of money.
- Wealth Enhancement: You need discipline to build your wealth in the most tax-advantageous way. Once you have wealth, you then need to reduce expense and tax leakage wherever possible. We help structure your savings and generate growth in the most tax-efficient way possible.
- Wealth Preservation:It takes many years to build financial value into your life – the last thing you want is for it to be frittered away or lost due to poor planning and administration. Magus ensures that all the bases are covered, so what you have built is protected for you and your family, now and in the future.
- Wealth Transfer: Many clients wish to pass as much of their wealth as possible to their children, to give them a helping hand and a head start in a highly competitive global world. We work with you to structure your affairs in the most tax-efficient way so that your heirs are the major beneficiaries of your estate, rather than the State. We also work with the next generation in preparing them to receive the money that will inevitably be theirs one day.
The last leg of the stool - and usually the first service that clients associate with financial advisers - is investing money.
Whether we like it or not, money often underpins what we want to achieve in our lives. So it makes absolute sense to have it managed in a way that is aligned with your goals and aspirations.
Sometimes people come to us with new money to invest, possibly from a business sale, downsizing their property or having received an inheritance.
They also come to us with investments and products that they have collected over the years. These investments often seem to be disjointed and clients struggle to know if these are working and performing well to achieve their ideal life.
At a high level our investment consultancy process consists of 6 main elements:
- Long-term goals, objectives and values. Long-term goals can consist of anything from retirement to purchasing a second home or achieving financial independence. These goals are the bedrock upon which the portfolio will be built. We work with you to define these goals clearly and concisely.
- Define the level of risk you are willing to accept. We design your portfolio around the loss you can emotionally take in any one year, without amending or stopping your investment programme. We show you past portfolios and assess your reaction to market movements to help you better gauge your true tolerance for risk.
- The expected time horizon for the investments. We work with you to understand your investment time horizon and any specific events that may need funding along the way.
- The portfolio return and asset classes to be used. We identify the specific return and risk profiles of each asset class and use these ranges of returns as the framework to determine your portfolio's expected return.
- The investment methodology that will be used. We clearly state the reasons for whichever investment method we recommend to you.
- A strategic implementation investment plan. In order to maintain the correct mix of assets and risk profile of your portfolio, we establish the parameters for making periodic adjustments to the portfolio. We will rebalance your portfolios periodically in the most tax and cost effective way possible.
Investment consulting is important, but it is just the piece that drives the returns – it's not the whole plan.
There is always a need to ensure you have all these three elements of the three-legged stool working in harmony together, to provide you the best bedrock to underpin your financial plan and goals.
Magus Advanced Services
Magus gives wealthy individuals and families an array of additional services to help to manage the financial complexity in their lives. These specialist capabilities and services have been designed over the years to address many of our clients' bespoke needs.
All wealthy individuals and families are unique and therefore they need different levels and types of advice throughout the lifecycle of their wealth.
We offer 6 main advanced services.
In this ever increasing globally mobile world, it is very common for families to accumulate many assets: properties, businesses, investment portfolios, in many countries and different jurisdictions.
Managing these assets is hard enough, but over time the reason why some assets were acquired and how they all fit into the family's long term wealth strategy becomes unclear.
Wealth Mapping collates all the components of your family's wealth. This often includes compiling and presenting large amounts of data to gain a clear understanding of where you are in relation to your established objectives.
To give the clarity around your financial world we cover elements that can include:
- Cash Flow
- Balance Sheets
- Decision-Making Roles
- Succession Planning
- Strategic Goals & Objectives
- Mission & Strategy
Identifying these critical pieces of information often provides insight into questions you may already have about your financial world. You can't know where you're headed, if you don't know where you are.
Research shows that families with a certain wealth often have numerous investment advisers who work in isolation.
They deploy the services of more than one investment house to capture different management styles and expertise and possibly to feel they are diversifying their investment risk in some way. Whatever the reason, having different managers with different philosophies and strategies, even for the most sophisticated client, can be bewildering:
To give you a clearer understanding of your overall investment world Magus will:
- Create a co-ordinated Investment Policy Statement for all accounts and/or legal entities
- Help create a strategic asset allocation and investment strategy for all 3rd party investment managers
- Provide investment due diligence, selection and monitoring of all 3rd party investment managers
- Deliver consolidated investment reporting of all your investment managers
Magus helps you to build a focused and robust investment philosophy ensuring the combined investment strategy complements your family's long term investment needs. You will be safe in the knowledge that you have another set of eyes monitoring and reporting to you. You will know that the different investment approaches are working in harmony and are complementary to one another.
Ultimately, we help you be in control of your investment world.
Charitable giving and philanthropy is becoming more central to the way individuals and families think about their wealth, their role in society and the world at large. We see increasingly that successful people wish to use their wealth to make the world a better place, in their own lifetime and beyond.
To ensure you achieve your charitable and philanthropy aims, we address:
- Education on philanthropy
- Next generation involvement
- Shared values and giving interests identification
- Philanthropic mission statement development
- Foundation governance
- Charitable structure evaluation
We work with our network of advisers to help build a strategic, effective and affordable charitable and philanthropic plan that meets your family's shared values, interests or specific causes that are important to individuals in the family.
Wealthy families and successful family businesses face many challenges maintaining family wealth and family harmony over successive generations. It is a well-documented fact that less than one-third of family wealth survives to the second generation. Among these, less than 10% of wealth survives into the third generation.
For the survivors, successful generational wealth transfer brings bountiful gifts to the family and the community.
The accumulation of wealth is termed Financial Capital. Families put considerable energy into their Financial Capital: growing it, investing it and measuring their financial assets. However, few families have understood that their wealth consists of three forms of capital: human, intellectual and financial. Sadly, this is why most wealthy families fail to retain their wealth beyond three generations.
In contrast, the most successful multi-generational families create a balance between the energy they put into their Financial Capital as well as their Human and Intellectual Capital.
A family's Human Capital is made up of all the life experiences of those in the family, past and present. It allows current and future family members to view the family as a multi-generation entity, taking a 100 year+ perspective. They leverage the family's heritage, strong family values and collectively work to create a cohesive vision for the future.
To help families build their Human Capital we cover topics including:
- Improving communication within families
- Building a shared family vision
- Teaching conflict resolution
- Creating agreed family values
- Building family governance frameworks and family constitutions
- Roles and responsibilities within the family and the family business
- Identifying personal values and purpose in life
A family's Intellectual Capital is the knowledge gained through the life and business experiences of all family individuals, past and present. They use their combined acquired knowledge to enhance the wealth of the family enterprise, for the benefit of both current and future generations.
To help families build their Intellectual Capital we cover topics as diverse as:
- Preparing the next generations to receive the wealth
- Education around wealth
- Succession planning
- Education around business
- How to work with family advisers
- Finding and preparing the next family leaders
- Coaching the First Generation to let go
- Legacy planning
- Supporting First Generation thinking
The great thing is that as families learn these skills they become aligned around a common vision, creating a shared family legacy. As a result, the family leverages the talents of each family member to preserve and grow the family's wealth over multiple generations.
This methodology is recognised by the world's most successful families. They put an equal amount of time and energy into developing other aspects of the family, aside from focusing on money. As a result, not only have they have created best practice and governance around their business and financial world, but also have created best practice, interconnecting the worlds of family, business and personal development.
We help you combine a blend of these best practices from each of the areas (family, business and personal development), creating a bespoke programme for your family. This helps ensure a successful transition of your wealth to the next and future generations.
As the world of the wealthy becomes more complex the ecosystem of providers and advisers that families work with has become extensive and can be very hard to co-ordinate. At any one time, the average high net worth family can be involved with up to 20 service providers.
The issue is that the family, and more usually one or two family members, are left to manage and co-ordinate all these relationships.
Magus work with your network of providers as your advocate:
- We work with your asset managers, private banks, lawyers, accountants, trust companies, custodians, consultants and brokers. We ensure they are functioning in tandem and in communication with each other to execute your wealth management plan in the way that benefits you the most.
- We help our clients to ask the right questions and are on hand to “translate” any unnecessary industry jargon
- We will co-ordinate and chair joint adviser meetings to ensure that there is consistency of advice across different disciplines
- We will provide a Family document that encapsulates the family structure, ambitions, decision-making processes and long-term vision. This document captures the essence of the Family and enables each provider to understand the Family DNA.
Our service saves time and reduces ambiguity and inappropriate advice. We give you the confidence that your ecosystem of providers is really working for the benefit of your family.
Keeping close tabs on significant wealth can be confusing and overwhelming to even the savviest of investors. Our objective is to provide you with clarity around your wealth and to have a fully documented record of every aspect of your financial world in one place.
In order for you to be able to manage all that makes up your financial world, we provide you with:
- A complete system of data aggregation, document management and consolidated reporting that show you exactly what you own.
- We create the charmingly-named “On my Death” file. Many of our clients have asked us to catalogue their financial world to enable smooth handling of their affairs on their death, so there is no financial stress at a time of sad emotions. Many of our clients find this an invaluable service that helps put their mind at rest, knowing everything is in one place, when the need arises.
Having everything you own centrally recorded gives you control of your financial world and a rare tranquillity and peace of mind in a very chaotic world.
Summary of Core & Advanced Services
The Magus Service Wheel is like a roundabout: clients can arrive at any point in the inner or outer circles. They either head to their destination having travelled only a short distance around the roundabout, or, more often, tend to travel through many of areas of the roundabout.
Whatever your situation or financial worth, Magus can ease you on your financial journey and help take care of your financial world.