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No matter what life stage a client may be in, they will inevitably have a range of different needs – some goals may have a short time horizon while others will be for the medium or longer term. As such, the assets within a client’s account could ideally be divided into separate pots – each with different investment strategies.
Fidelity’s new approach is simple with their Flexible Investment and Retirement Solutions facility. So, one pot within a pension account can be focused on the client’s short-term income needs – containing, for instance, cash or a guaranteed lifetime income. Separately, other segments can aim to deliver more growth-oriented goals, such as the desire to leave an inheritance to loved ones.
Flexible Investment and Retirement Solutions can:
- Provide you with the flexibility needed to support your Central Retirement Proposition
- Allow you to manage short term income needs and sequencing risk
- Incorporate different investment solutions in line with the FCA’s thematic review.
With these in mind, their new offering can help with the following:
- Clients can hold segments of their pension in different accounts according to their needs and goals
- Different investment approaches can be used in each account, including your own model portfolios, models from one of more DFM or individually selected investments such as a smoothed fund
- Allows you to hold assets, such as a smoothed fund, alongside model portfolios
- Allows assets to be held separately from model portfolios for specific purposes, such as income. For example, cash and a guaranteed lifetime income
- Regular savings can be funnelled into one or numerous accounts
- Separate settings can be applied to each account, such as the rates for adviser and DFM fees or the treatment of income distributions
- Assets within each account can be transferred to other pots as client needs change over time
- You can tailor reports at client, wrapper, or account level to support client reviews
- The Flexible Investment and Retirement Solutions facility is also available for ISA and Investment Accounts.
To fully support the advice process, they have introduced a new standalone pre-sales illustration tool. This allows you to illustrate your full recommendations to a client, and can include multiple savings and drawdown accounts, with their own specific details for charges, income, RSPs etc.
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