Your personal finances need attention 

“While Brexit had a significant impact on people’s investment decisions earlier in the year, sentiment now seems to have changed more towards 'let’s get on with it' and a realisation that, while it may be very relevant in an Irish business context, on a global view it is very insignificant,” said Oliver O’Connor, Head of Private Client with Grant Thornton.

When it comes to their private client offering, Grant Thornton draws on its vast array of in-house expertise to provide each client with a tailored plan that addresses their current and future financial needs.

O’Connor says: “We approach new client relationships as long term undertakings and find that completing a financial plan is a very effective way of setting out a broad framework for the client.”

 Grant Thornton believe that you are never too young or too old to undertake a review of your financial position.

Ordinarily, a person who is in the early stages of their career may not have a large asset base but it is always worthwhile identifying where you are and where it is you want to get to.

The big question then is whether or not a person will have the financial resources required for future life events.

On the other hand, a person who is retired may be more concerned with inheritance planning and the potential need for home or residential care.

The financial planning process begins with an in-depth look at a client’s current financial position, including their protection cover or lack thereof.

Cash flow analysis is used to map out various scenarios that may occur in the client’s future.

It is vital that clients have an understanding of how the decisions they take now impact their finances in the future.

“Our first approach is to prepare an overall financial plan, setting out the client’s total net worth, how it is structured, and appreciating why it is structured in that way,” says O’Connor.

“Depending on the age bracket of the person, we look at the actions they need to take, now, so they’re using their financial resources most appropriately.” O’Connor says that regardless of a client’s age, there’s broadly three categories an individual can fall under: more than enough wealth, too little wealth, or just enough.

“If you do not have sufficient wealth to meet your specific needs, you have to focus on accumulating more wealth and ensuring this is done in a tax-efficient manner.

"We can help with this from both perspectives as our Private Client offering marries both financial and tax planning experts,” he says.

Having substantial wealth can also require planning. For example, a major concern for people in their 60’s is passing on their wealth to the next generation as efficiently as possible.

"The last thing a person wants to see is their wealth significantly eroded due to tax liabilities. Timely financial planning enables people to minimise these liabilities.” Grant Thornton’s approach is that the initial client interaction focuses on ensuring that the client understands their own finances.

There is no mention of financial products.

Typically, there will be a number of meetings with the client in order to have a comprehensive overview of the individual’s circumstances and arising from this, there will be a list of potential actions the client could take and why they should take them.

The need to buy or sell a financial product is a consequence of the planning process.

“You need to put more effort in at the start - measure twice and cut once,” says O’Connor.

There are typically a number of action points that arise from a financial plan.

“When considering investment risk, taking too little risk can be as damaging as taking too much risk,” says O’Connor.

“We are able to identify the level of investment growth an individual may need to meet their financial objectives in years to come, and find the suitable vehicle to help them meet that need.

"A key part of our process is ensuring that a client who requires 3% - 4% growth per annum, realises that they cannot afford to leave their money sitting in cash.

"However, they must also understand their upper limits when it comes to investment risk. Our role is to ensure that a client appreciates why they need to invest and what they are trying to achieve by doing so.” 

Grant Thornton does not offer their own suite of investment products, but instead partners with best in class investment managers from around the world, identifying which investment manager is best equipped to help each client meet their own individual needs.

“Some clients like to be more involved in the investment process,” says O’Connor.

“Our role is to work with them, helping them to understand and optimise their wealth over the long term”.

Grant Thornton’s Private Client team is growing substantially and recently welcomed Pádraig Hayes to lead the Financial Planning business.

In addition, to broaden the firms offering across all service lines Brian Cronin has recently joined the firm’s tax division to further enhance the firm’s capabilities locally.

For more on Grant Thornton's Private Client Services, see: grantthornton.ie/service/private-client-services/