any IFA's here? Question re paraplanning!

crazycatlady1984

Hi guys,


Just needing a bit of a sounding board from any people in financial services if possible?


I am currently sitting the CII J09 qualification (Paraplanning) which is a case study and 3 essay questions (each question is split into 3 parts, so effectively 9 mini essays).


The question I am stuck on is "prepare a document for the adviser reviewing each of their investments and suggesting ways in which the clients could simplify their investments as they are struggling to keep track of them".


My problem is that the suggested word count for this is 2,000 words. I don't generally have any issues using up word counts, but I feel I am missing something as any suggestion I can think of doesn't come close to this!


The clients have 9 ISA's, plus an investment bond and a Collective investment portfolio of unit trusts and OEIC's.


The obvious answer to me is move onto a platform, will then be easy to keep track of - but obviously that's nowhere near 2000 words!


I have also suggested cashing in the ISA's and buying another investment bond written in trust as this would a) consolidate and b)help meet their inheritance tax liability, but there is a specific question on IHT later so I don't want to go into too much depth here just to have to repeat it later.


Am I missing something obvious?


Thanks for reading and thanks for any help anyone can offer!

Annisele

I've not taken J09, so I might be on entirely the wrong track - but it sounds to me as though you're only answering part of the question. If you're supposed to "review the existing investments" and "suggest ways the client could simplify them", then the platform idea only deals with the second bit.

Are you supposed to say something about the level of risk presented by the funds they're currently invested in, and then say something about diversification / risk tolerance / emergency funds?

crazycatlady1984

Thank you, yes, you may well be right. I considered that, but basically the info is all spread out in a factfind, and for the first part of the question I have created a table to put all the investments in and then listed why each item of info is required (things like commencement date, contributions, plan number etc), so I am wary of repeating myself.


But I think you must be write, they must be looking for a "review" of them (as it does say that); will just have to try and briefly review them without repeating what I have already put in the table. (I have sort of started that, ie saying that they have enough in cash to satisfy an "emergency fund" etc, but I think I will have to expand on this).


Thank you!


So from the info I've given, you can't see that I'm missing anything obvious?

TrickyDicky101

I've no idea what the specifics of your investment bond are but would you really advise cashing the ISAs in and lose the tax free status going forwards?

crazycatlady1984

TrickyDicky101 wrote: »

I've no idea what the specifics of your investment bond are but would you really advise cashing the ISAs in and lose the tax free status going forwards?

Hi, yes, I believe so. They will already have made their tax-free gains and by investing in an investment bond written in trust they can mitigate their inheritance tax liability. If they are still invested in the ISA's when they die, the proceeds will form part of their estate and inheritance tax will be due to be paid on them.