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Main Task
Section A
In the given case, it has been found that as a financial adviser in an authorized firm, an essential training pact is needed to be provided to the trainee advisor for the development day. In this aspect the training pack is associated with the investment products, strategies regarding taxation for the retirement income.
In this dimension, this study is involved with the role of financial advisor in producing an essential document regarding the training pack of trainee advisors for recommending better investment plans to high net worth individuals after retirement. In this dimension, the investment product can be associated with the stocks, bonds, mutual funds, exchange-traded funds and others. In addition, these dimensions this document must be consist of assets allocation procedure for high net worth for the retirement and those who are interested in the preservation of capital (Fan and Lin, 2019). In this portion, there may be a document package regarding the assets allocation conservation such as allocation of assets 45% in the stocks that may be included with mutual funds, individual stocks, “exchange traded funds - ETFs” and others. Apart from that the document may consist of investing 55% of the assets on “fixed-income assets” such as bonds. In this aspect, training pack can be associated with 50 years old clients whose net worth is high for retirement. Apart from that, an investment product can also be designed for the 40 years aged client whose net worth is smaller. In this segment, there can be some investment products such as stocks, financial-stock-assets and others. In this dimension, there are some potential clients who have the willingness to take effective risk regarding building up the “financial portfolio” effectively. In this dimension, the essential role of financial advisor or a trainee advisor to recommend regarding investment on stocks, bonds, mutual funds and others such as allocation of 70% assets for the stock, allocation of 25% assets for the “fixed income assets” and allocation of 5% assets for the strategy of alternative investments (Gamble, 2020). Therefore based on the net worth of clients an effective document is required to be made regarding the allocation of assets in the investment products. Based on the given case study, it has been found that the main area of consideration on the use of investment products by high net worth is a tax efficient procedure.
As a financial advisor in an authorized firm, risk factors in the several investment products are needed to be included in the document. In addition, in the context of stocks as an investment product there are some risk factors regarding the ineffective investment on different shares, absence in effective professionals for money management and others. Investing in a stroke can be involved with risk of financial damage due to ineffective investment strategy in the shares of a company (Li, and Zhang, 2019). In this dimension, it is an essential task of a trainee to give essential advice to high net worth people regarding effective investing platforms that can assist in meeting the financial goal of an individual. Add to that, in the UK market there is a mutual fund, OEIC - “open-ended investment company” that offers professionals for money management. Investing in a company’s share is a kind of essential financial product where an individual with a high net worth for retirement can invest. In this dimension, based on the document package for trainee advisors, the essential responsibility is to advise the client regarding the risk in investing in a particular organization. In this aspect, as a financial advisor it can be recommended about the mutual fund that offers a basket of shares where an individual can get an opportunity to buy shares of different companies so that risk can be reduced. In the context of investing on some stocks or bonds, capital gain tax is a major area of consideration where an increase in the tax rate can affect the financial goal of an individual.
Furthermore, in the retirement, it is also an essential aspect for a financial advisor for considering several retirement accounts such as Roth 400(k) so that tax can be saved effectively. Apart from that, return on investment is a major aspect that must taught to the clients. There are several essential mutual funds such as Invesco, Blackrock ands, “Baillie Gifford Positive Change '' and others must be informed regarding the commission and charged so that an effective return on investment can be gained by an individual. In making a strategic investment decision, liquidity and solvency aspects of clients are needed to be considered before recommending investment of assets in different investment products (Gruber and de Souza, 2019). Add to that, an individual can be involved with short term and long term liquidity and also may have anticipation about any life changes where based on the evaluation of these all the aspects, a training pack is needed to be provided to the trainee advisor to the firm.
Based on this case study, In bringing effective business performance of firms, an effective document package for training of different trainee advisors is essential for future growth of the firm by providing effective advice to clients. In addition, this document must consist of details about different invest products for the high rated people for retirement, required accounts at the time of retirement, some types of insurance that clients must have ( including term life insurance, disability insurance, insurance regarding long term care and others). As a financial advisor in an authorized firm, an effective training document pack must include these all the aspects for the development of trainees as an effective financial advisor (Hartley, 2019). In the context, all the trinee advisors must be developed by considering several essential risks. In this dimension, risks can be associated with inflation rate, changing taxes regarding capital gain tax, inefficiency in some investment platforms and others that can impact on the investment procedure as well as the financial goal of the client. In addition, in the context of formulating an essential recommendation for pension or investment of assets of a client, there are several essential roles and responsibilities that must be included in the document for trainee advisors so they make investing decisions on structured products and allocating the assets of the client effectively. In this dimension, there are some essential roles and responsibilities such as evaluating the current financial condition of an individual, assessing the capacity of an individual in paying short term as well as long term liabilities, revising the financial performance and others. In this portion, this training pact must show the requirement of regular meeting with clients regarding the progression of financial performance of clients based on the goals (McCarthy and Wong, 2020). This document must consist of some essential calculation regarding the return on investment by allocating the assets on investment products. In this dimension, the calculation needs to be involved with the performance of several stocks and the approaches of saving taxes so that greater value can be generated for clients. The goal of this authorized firm is to provide greater value for clients by allocating the assets effectively and by giving advice regarding opening some accounts and insurances. In this aspect, all the trainee advisors must be aware and developed with an effective training process so that desired objectives of the firm can be met. The external business environment changes frequently where there are several factors that need to be considered such as change in economic factors, change in government policy regarding taxation, legal aspects and other. Add to that Based on the change in environmental conditions, a financial advisor requires updating the portfolio of clients to gain an advantage. Therefore, it can be said that as financial advisor of these authorized firms, an effective training document pack is needed to be generated by considering all the above aspects so that greater value can be created for clients and firms can gain long term value in return.
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