Business Builder Forum May 2011

• 1. Business Builder Forum 11th May 2011Welcome Paul Meades Meades & Company

2. Morning agenda07.45 Arrival08.00 Registration, breakfast and networking08.20 Welcome: Paul Meades, Meades & Company08.30 John Boss, De Montfort Professional Wealth Management09.30 Q & A09.45 Close and networking10.00 Stadium tour with former Watford FC player Neil Price 3. Your event Feedback essential Networking 4. John BossDe Montfort Wealth Management 5. How to improve yourpersonal wealth 6. Quick Approach Become a Premier League footballerYa Ya Toure Manchester CityWages reportedly 250,000 + per week Plus bonuses 7. Quick ApproachMarry into the royal family 8. Agenda How to improve your personal wealth Planning The effect of costs and charges The effect of tax Beware of cash Beware of Buy to lets Reduce costs wherever possible Minimise risk Diversify your portfolio Engage with your finances 9. The De Montfort CompaniesDe MontfortDe MontfortDe MontfortDe Montfort De MontfortProfessionalAlternativeFinancial TaxWealth Investments AdvisersSolutionsManagement 10. PlanningFirstly you need to discover what you are aimingfor? 11. Planning Set out where you want to go When you want to get there What you want to do along the way We cannot suggest any investments before we know what is required ofthem! Allow your adviser to get to know your circumstances and listen to whatyou want, as opposed to what they want you to hear 12. Minimise costs and charges Be aware of what the total costs and charges are Transparent terms of engagement Know your total expense ratios Difficult to find with some providers Independent Research Tools Offered to all De Montfort clients 13. Minimise Costs and Charges Typical situation 100,000 investment Jupiter Merlin Balanced Portfolio Acc Bid/Offer Spread 5.25% Annual Management Charges1.5% Total Expense Ratio2.44% 100,000 investment Jupiter Merlin Balanced Portfolio Acc Bid/Offer Spread 5.25% Annual Management Charges0.75% Total Expense Ratio1.69% Physical cost saving per annum 750 Over 10 years 7,500 14. Minimise Costs and Charges Other example 100,000 investment Discretionary Fund Manager Annual Management Charges1.50% 100,000 investment Discretionary Fund Manager Annual Management Charges0.35% Physical cost saving per annum 1150 Over 10 years 11,500 15. The effect of TaxSorry George, our clients do not like paying tax 16. The effect of tax Use all tax allowances and tax efficient investments available ISAs 10,850 Pensions50,000 (200,000 this tax year) Onshore Bonds No Limit 5% tax deferred withdrawl facility Offshore BondsNo Limit 5% tax deferred withdrawl facility, gross roll up Other Investments Use capital gains allowances each year 10,600 Offshore SavingsGross roll up Enterprise Investment Schemes Venture Capital Trusts Property partnerships 17. Venture Capital TrustsVCTs are investment companies listed on the London Stock Exchangeand were introduced by the UK government in 1995 to encourage individualsto invest in smaller UK companies not listed on the main stock exchange.VCTs invest in a portfolio of unlisted or AIM companies (or both) in order toaid their development into a successful business and realise gains for investors.They are designed to give private investors an opportunity to back young growthcompanies while offering generous tax incentives.Investment Limit 200,000 per annumIncome Tax Relief30%Hold period5 yearsOther benefits tax-free dividends tax-free gains 18. Enterprise Investment SchemesAn Enterprise Investment Scheme (EIS) is a government initiative designed toencourage individuals to invest in Britains smaller private companies. Toachieve this, the Government offers EIS investors a range of tax reliefs.The tax advantages available from an EIS investment provide investors with asignificant head start in comparison to more traditional investment products.Theyre particularly suited to investors with income tax liabilities, or those withcapital gains to defer.Investment Limit500,000 per annumIncome Tax Relief30%Inheritance Tax Relief100% after 2 yearsHold period 3 yearsOther benefitstax-free growth 19. Property PartnershipExampleSpringfield UK Commercial Property FundThe Springfield Commercial Fund expects to return in excess of 13% p.a. viathree reliable benefits of Focused Funds: above-average rental income above-average capital value increases, and risk reduction through high quality management and meaningful diversification.The Funds closed-ended structure enables investors to benefit from buying intothe commercial property market at this point in the market cycle and avoiddilution from herd investment in later years.The Funds management team is expert in commercial property and highlyexperienced; it is committed to providing investors with above average returnsfor below average risk. 20. Property PartnershipExampleSpringfield UK Commercial Property FundOption 1 50% Geared versionMinimum investment 20,000Expected return 13% per annum, including 5% income during the termExpected capital allowances of between 30% and 40% (not guaranteed)Option 2 75% Geared versionMinimum investment 125,000Expected return between 18% and 20% per annum, no income paid during theterm.Expected capital allowances of between 60% and 80% (not guaranteed)Early investment incentives of up to 8% 21. PensionsMake your existing pension monies work harder.Funds over 50,000 consider Self-Invested Pension Scheme A SIPP is a personal pension wrapper that offers individuals more freedom of choice than conventional personal pensions. They allow investors to choose their own investments or appoint an investment manager to look after the portfolio on their behalf.Individuals have to appoint a trustee to oversee the operation ofthe SIPP, but having done that the individual can effectively runthe pension fund on his or her own.A fully fledged SIPP can accommodate a wide range of investments under itsumbrella, including shares, bonds, cash, commercial property, hedge funds andprivate equity.Dont forget Protected Rights monies. 22. Beware of CashExample3.5% Fixed 1 Year Bond, minimum investment 1,0002.8% approximate yield after tax at basic rate of 20% (2.1% net for 40%taxpayer, 1.75% net for 50% taxpayer)5.3% Current Retails Prices Index (as at 5th May 2011)-2.5% net return after basic rate taxHowever CASH CAN BE KING! 23. Beware of CashAlternative6.25% fixed income with prospect of 0.5% bonus, 5 year term, full capitalprotection as long as the FTSE has not fallen by more than 50% during the termComing soon5 counterparty structure with up to 425,000 full protected by the InvestorCompensation Scheme. Only available through De Montfort 24. Beware of Buy to lets What are you intending for this type of investment to do? Income? Growth? Property Spreadsheet 25. Beware of Buy to lets Prospects for Growth? Average House Prices Jan 1991 to Jan 2011 Jan 1991 53,052 to Jan 1996 50,521-4.77% Jan 1996 50,521 to Jan 2001 83,450+65.18% Jan 2001 83,450 to Jan 2006 158478+89.91% Jan 2006 158,478 to Jan 2011 161,211+1.72% Next 5 years? 26. Beware of Buy to lets QNUPS Qualifying Non-UK Pension Schemes What Are The Benefits? Tax-free growth no CGT or Income tax Tax efficiency on income minimal UK income tax No limits on annual or lifetime limits* Investment flexibility e.g. property Cash or in-specie assets Immediate IHT mitigation Corporate contributions Portable 27. Reduce Costs Wherever PossibleInsurance Premiums Life Cover, Shareholder Protection, Key Man, Income Protection, Private Medical, General InsurancesBills Company utility billsBorrowing Corporate debt, personal debt, mortgages 28. Relevant Life PoliciesCorporation Tax can now be legitimately claimed on lifeassurance contributionsZurich relevant life calculator 29. Minimise Risk Risk TargetsProfiler SuccessionVolatility % Return % paMaximum Portfolio Loss 112 to 4.753 to 4.5 -3 to -5 224 to 7 4.5 to 6 -2 to -8 335 to 9 5.2 to 7.5-5 to -12 44 8 to 136 to 8 -7 to -15 55 10 to 16 7 to 10-12 to -18 30. InvestmentManagement Expertise 31. Diversify your portfolioUse investments that are uncorrelated to the equity marketsTry to seek some solutions that do not work on a benchmark basisKnow your maximum downsideWords of cautionIf returns offered are very high, then the risk is usually high 32. Diversify your portfolioExamples:The Protected Capital Currency Fund5 Year investment term100% capital protection via a zero coupon bondTarget returns 12% per annumLife SettlementsAsset backed investmentLong established marketNumber of different providersReturns around 9% per annumVineyard Investment3 Year investment termAsset backed investmentFixed returns between 30% and 39% 33. Engage with your financesTake the time to review and monitor investments on aregular basisKeep in touch with the latest financial newsUse effective technology Apps Online website Wrap 34. Client Website Access 24hrs a day 365 days a year Real time valuations Secure communication Security Equivalent to Banks Personal document storage Client / Adviser interaction 35. WRAP ISAs PEPsUNIT TRUSTS CASHCLIENT BANKACCOUNTACCOUNT ONSHOREBONDS OFFSHOREBONDS SIPPDeMontfort Professional Wealth Management 36. Why WRAP? INDEPENDENCE FULL SUITE OF TAX WRAPPERS MODEL PORTFOLIOS (VESTRA, EVERCORE, QUILTERS) WHOLE OF MARKET INVESTMENT PROPOSITION TRANSPARENT CHARGING STRUCTURE HIGHLY COMPETITIVE TERMS WITH FUND MANAGERS SECURITY OF CASH SPREAD ACROSS 8 BANKS 37. De Montfort Professional Wealth Management is authorised and regulated by the FinancialServices Authority