Financial Advice You Can TrustJohn Kendall

of

Independent Financial Advisers

Lighthouse Financial AdviceLimited is an appointed representative of LighthouseXpress Limited which is authorised and regulated by the Financial Services Authority

• Can only advise on products from the company for which they act• Typically they work for a bank or building society• New business generates commission

Tied Advisers

• Offer advice from a limited number of companies • Typically they work for a bank • New business generates commission

Multi-Tied Advisers

• Can advise on all products and all providers • Work for high street or national companies• New business generates commission

Whole-of-Market Advisers

• Can advise on all products and all providers • Work for high street or national companies• Have a legal obligation to offer the option of paying a fee for advice • Commission /Fee or combination - you decide

Independent Financial Advisers (IFAs)

Types of Advice

Lighthouse Financial Advice Limited is an appointed representative of LighthouseXpress Limited which is authorised and regulated by the Financial Services Authority.

The FSA does not regulate Wills, Trusts, Taxation, Tax Planning and someMortgages.

Lighthouse Financial Advice LimitedWoodrow House78-84 Warren RoadWoodingdeanBrightonBN2 6BA08000 85 85 90

Agenda

• Personal Introduction• Why personalised financial advice is so

important• Adding value to your planning• My service proposition for clients

My Background

• Oxford educated - BA Chemistry• Imperial College London - MSc/MBA• 30 years in large companies (Unilever ,Thorn EMI) consulting,

problem solving, financial reporting, project management, executive reporting, adviser, strategist, implementer

• Advised at divisional board level• Worked in – UK, Holland, France and others.• Industries – Food, consumer goods, aggregates & concrete,

health, oil development, direct marketing and IT• KRM Concrete (Portsmouth) – 30+ years in family business

shareholder & director• Experience of small, medium and large organisations

A Wealth of Experience

• Marriage - 36 years with 2 Daughters• Executor of 3 Estates and Administrator of 2• 1 Business sale / 1 Buy out of family shares• Formed, traded and dissolved a business• 7 stock market crashes and recoveries• Became an IFA after seeing the poor state of the

family firm pension scheme• A High Net Worth individual as defined by Merill Lynch Cap Gemini World

Wealth Report 2010

What Do I Do For You?

• Ensure you have the right amount of money in the right hands at the right time

• Help you confidently make financial decisions & choose appropriate options in an increasingly complex world

• Provide financial advice by highlighting your risks and needs such as ;

Life/death Serious Illness Incapacity Borrowings

Inflation Savings & Investment Tax

Planning For Retirement Income& Longevity

Put Another Way

I am here to support and guide you through your decision making and the application of your choices

My Financial Planning Process

• Establish and define our working relationship• Understanding your circumstances including

goals/aspirations & fears/concerns• Understanding your financial situation• Developing & presenting financial planning

recommendations• Helping to implement the recommendations• Regular reviews ensuring your financial plans remain

appropriate• Providing support & guidance when needed

Financial Investment requires insight & experience!

UK Financial History 1950 to 2009 source Scottish Widows

Straightforward Advice

The basics of investing in real assetsA deposit account provides interest but no ability for capital growth

A real asset provides an income and the potential of capital growth…….. Such as property and shares

Real assets can provide a hedge against inflation which is why it is good practice to consider investing in them

Real Returns (less inflation)

Income reinvested

Source Barclays Capital Equity Gilt 2010 Study 2010

Where & When should you invest?

Straightforward Advice

I provide a comprehensive & robust investment service

1. Analyse your attitude to risk

with your assets to ensure that

you are not overly exposed to risk

or invested too safely

2. First class asset allocation

System

3. First class fund & fund manager selection. Professionals to review investments daily.

Profiling considers your key investorcharacteristics:

• Risk sensitivity• Desire for profit• Tolerance of ambiguity• Outlook• Horizon• Financial awareness• Investment experience• Suggestibility

• Assessing risk is part of our everyday lives & we are all used to making risk assessments – from crossing a busy road to taking part in sport

• What may seem risky to one person may be pedestrian to another

• Independent risk profiling based on proven statistical modelling using Distribution Technology’s Dynamic Risk Profiler

• Calculates a risk profile on a scale of 1 (safety first) to 10 (acquisitive Investor)

• Uses Psychometric Questioning

What is your appetite for risk?

Straightforward Advice4. Analysis of the right type of investment approach for you

(considering tax, costs, accessibility)

5. An overall (holistic) view to help you decide the most appropriate

solution –For lifestyle decisions, for the performance and risk you

choose.

6. Easy access to portfolio valuations

7. Regular reviews and monitoring

Of your appetite for riskOf the performance of your portfolio Previous decisions match with current lifestyle choices

Then Implement changes to help reduce the risk of future income /capital shortfalls

Advice Area ExamplesWill you have enough money in retirement? Pensions

What is your current expected State Pension entitlement? Will it be enough?

Have you any other pension provision?

Are there gaps in your planning? If so when and how will they affect you?

Do you have old pension schemes/plans that are not managed/poorly invested, provide poor value for money?

Other Funds

Are you expecting to inherit money?

Is your house your pension? What will it provide?

What are the associated risks with your plans?

Don’t forget that retirement income planning also has to consider your Personal Planning (i.e. non financial issues)

Advice Area Examples

• Estate Planning – Inheritance Tax, Care Homes, Money running out……….

• Have you made a will? Is it up to date?• Are you aware of the rules of intestacy and how they

can affect you and your loved ones?

Would you like to understand potential outcomes & what this will mean for you & your family?

I can help you assess these risks & plan

Advice Area ExamplesDo you Run a Business ?• As you get older how will your involvement in the business change?• What impact will this have on you, your family, the business ?• Which natural changes in your life & family will impact on the business?• Have you considered your exit strategy? • How much is enough? Will your business provide enough?• Most owners (my experience) are optimistic about their company value.

What will this mean for you, your family & the business?• Parent health and care can affect your time spent in the business –

have you planned for this?• What will the impact of serious illness or death have on you & your

business? • Is your business your main pension?

Will you have enough money to retire ?

Integrated Advice.

Personal / Business financial planning

Integrated Financial Planning

• Family

• Business

Benefits

• Directors

• Shareholders

Business Will / Individuals Wills

Guaranteed Market for shares

Tax Planning

Other Key People

Locked in

Company Protected

Summary I can guide you through an organised process

• To help you understand your existing position

• What this will mean for you in the future

• Focusing on possible shortfalls /surpluses

• With analysis of existing risk & assets presented as a meaningful report

• With recommendations to implement

Inaction Costs - the 4Ds

Planning to meet your goals requires action

You have 4 simple choices – all will cost you…• Do it Now i.e. do you have the time & knowledge to do this yourself competently

• Delay it i.e. will this cost you in lost returns, opportunity or greater risk ?

• Drop it i.e. take no action – who else will be affected by this ?

• Delegate it i.e. allow me to understand & work with you to manage the process for you,

making it easier & freeing up your limited time

Why Not Book an Initial Meeting with me Today at our Expense.

Regulatory Information• The value of investments and the income derived from them may go down as well as up and

you may not receive back all the money which you invest.• The investments and investment services described or recommended in this presentation

may not be suitable for all people. You should seek your own professional advice as to the suitability of any such investment or service before you enter into any transaction.

• Any information relating to past performance of an investment or investment service is not necessarily a guide to future performance.

• Fluctuations in the rate of exchange may have an adverse effect on the value, price or income of non-sterling denominated investments.

• Aspects of corporate financial planning, Aspects of Trust and Estate planning, Tax planning & Commercial mortgages and finance are not regulated by the Financial Services Authority

• Your home may be repossessed if you do not keep up repayments on a mortgage• The information provided at this seminar is generic and not to be taken as personal advice.

• For any correspondence please address this to

John Kendall

Lighthouse Financial AdviceLimited

7 Baldock Road,

Letchworth Garden City,

Hertfordshire

SG6 2EG