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The Accumulator: Woods lays strong foundations for wealth growth

Mattioli Woods' proposition uses Sipps and SASSs giving access to commercial property and its discretionary portfolio management service.

Bob Woods - Chairman - Mattioli Woods

Our clients range from owner-managers and senior executives to other professional people. Sipps and SSASs are often central to our clients’ pension strategies, but pension planning cannot be developed in isolation.

The fundamental long-term objective of accumulation is to develop sufficient wealth to be capable of making lifestyle choices without recourse to a client’s financial implications.

The accumulation of sufficient capital in itself is not sufficient, and appropriate diversification is needed to counter the risks associated with every asset class. Reducing or avoiding exposure to assets that have become expensive or vulnerable, and thereby protecting gains, creates strong foundations for growth.

We take full account of the wider opportunities, including ISAs and other forms of personal investment, taxation and trust planning. We work with our clients to develop a balanced financial plan.

Over 60% of our clients hold commercial property within their Sipp or SSAS, often with their own business as tenants.

Property is well suited to retirement accumulation, lending itself to both tax-free capital growth and income generation, often inflation-linked.

For further diversification, we use a tightly controlled but varied portfolio of investment instruments. These include a range of bespoke structured products and syndicated property.

Retirement planning tips

1. A good solid fact-find will enhance planning and assist with idea generation.

2. Get to know the client well because one solution does not fit all.

3. Variation within investment portfolios is extremely important.

4. Ongoing reviews, at least annually, should lie at the heart of the strategy.

5. A good wealth manager needs not only to avoid jargon, but to be able to present ideas clearly.

My favourite client case

A client’s SSAS was established by his parents many years ago and had become dormant without any contributions having been made. The client was told about the tax liability on beneficiaries in the event of death, and contributions that could be made by a company. The company made a contribution of £255,000 to the scheme before year end. It was subsequently loaned back to the business within a few days. This resulted in a corporation tax saving of £50,000.

What’s in your wrapper?

Using Sipps and SSASs, clients can move between asset classes and vehicles, including direct holdings of commercial and syndicated property, structured products as well as more specialist investments, such as unquoted shares, intellectual property and third-party loans.

For our discretionary portfolio management service, we manage a range of risk-weighted portfolios, tailored to suit our clients’ individual circumstances. Each of the portfolios is created using the company’s best-buy list. The list comprises a range of investment funds, selected to match current investment opportunities and to ensure a truly diversified portfolio can be maintained.

Decumulation strategy

When it comes to income planning, we believe flexible drawdown, albeit for the right clients only, can facilitate two important objectives. Firstly, to maximise the tax efficiency of income that in turn will go a long way towards meeting a client’s lifestyle objectives in retirement. Secondly, to preserve the tax-free death benefit’s lump sum to beneficiaries.