Chestnut Financial Services Limited

10 Newark Road, Bassingham, LN5 9HA

Call Us: 01522 788887

Email Us:

Chestnut Financial Services Limited

10 Newark Road, Bassingham, LN5 9HA

Call Us: 01522 788887

Email Us:


Financial Services Limited

10 Newark Road,



Call Us: 01522 788887

Email Us:


- Step 3 of Financial Planning

Your Money and Your Life!

What’s in your financial bucket when you want to do something, that's the question. Doing stuff before its too late is critical because life isn’t a rehearsal – we should all be setting the time for when we will get the stuff we want to do,  done.

Here's a question - do you really care about which particular investments you have? Surely its what you do with your financial bucket that matters, all the way up to your death?

If the bucket runs out, you won’t be able to continue to live as you want or achieve what you want to do. So our forecasting work can be crucial.

If the bucket has lots in it when you die then you will have paid too much tax (income tax, national insurance, VAT, stamp duty, fuel and alcohol taxes). Possibly inheritance tax. Worse still, you die not having done things.

We want to know what you want to get out of life:

  • Present lifestyle
  • Family situation
  • Plans for the future
  • Doubts, fears, worries and concerns

We can see if your money is invested in the right places or attracting too much risk. Some people already have enough, but don’t realise it, some don’t realise they need to make changes to their financial plan otherwise the money will run out. We can look at how much would be needed to make it enough. We can look into options to consolidate and simplify pension & investment portfolios, potentially to cut charges, match investment risk to our client's happiness, and help make such financial worries stress-free – taking into consideration what returns are really needed from investments/dividends.

Financial planning is fun – using prudent assumptions can see what’s going on in your bucket. You might be amazed at the opportunities that are there. Together we can tailor your financial planning so that you can be confident about where you are heading financially. We can stress test your assumptions and requirements to give you confidence and clarity, and peace of mind. Working with a financial plan allows you to explore opportunities and answer questions.

Our clients expect a trusting relationship with a well qualified and experienced adviser. What we hope to provide in return is peace of mind, financial security and financial independence. We will talk to you about your desired lifestyle – the way you choose to live your life, what you do, want to do, and don’t want to do.

Investing - Spread Money Around

Investing and Risk

Its important to understand a few things about how investing and risk work. It’s a fact, in my opinion, millions of investors take far more risk when investing than they need to. Money can be invested in the wrong places, money can lose its buying value, and over the years just imagine how many billions have been lost in poor performing and risky investments.

In my opinion every client deserves peace of mind, particularly in today’s volatile investment markets. So my recommendations are based on where you are now and where you want to be – not just how much financial pain you can take from losses – but realistic, achievable, investment returns – based on what you need, before looking at the possible risks to the recommendation. Investing therefore can be fun, interesting and rewarding, but only with the right kind of financial advice.

  • If you found out through a professional lifestyle financial planner that you can afford to live on returns of 2% per annum - why would you take higher risk when investing? Why not just create a low risk, low cost, widespread, tax efficient, portfolio to give you confidence, financial independence and peace of mind.
  • What if you discovered you would never run out of money to meet your expenditure plans – why take any financial risk when investing at all?

When you know what your financial future looks like you start to understand what level of return you really need when investing, and only then consider the investment risk you need to take and are prepared for (risk is, after all, a measure of the pain you are prepared to take). It’s a catastrophe to invest in anything you don’t really need, which do things you didn’t expect. That’s financial stress, its costly and deeply troubling if financial advisers haven’t taken the time and trouble to understand their client’s true needs.

One myth to dispel – whatever your friends or family etc say, in the golf club, the pub, or anywhere else, they might tell you a lot about their investing successes… did they spend the same time telling you about their losses? Another myth – how many times have they sold at a low price (when the markets are down) and bought at a high price (when the markets are expensive) – not the best investment strategy since it leads to financial disaster!

My aim is to make sure my clients are having fun, enjoying their precious life, not worrying or being distracted by the financial press or the goings on in the stock market. We keep investing simple.

In a nutshell

Whatever your circumstances, no matter how much or little money you have got, understanding your money and whats going to happen to your bucket, enables you to take control and live life more fully.

Investing Wisely

Having mastered budgeting and insured ourselves against disaster, we can turn our attention to the future and begin to build that future for ourselves.

Those two words, “investing wisely” are so simple, but cover a huge array of choices of investments, tax wrappers, providers, costs, asset classes and methods of investing.

For most of us, the good news is that our investment regime should be very simple. Essentially it comes down to three things:

• Spread your money around

• Keep costs (including tax) to a minimum

• Keep an eye on things

Investing - Spread Your Money Around

When investing, spread your money around

If you spread money around, the impact of one thing going wrong won’t massively impact your whole financial plan. Here’s an analogy – daft but works:

  • If you invest all your money in umbrella shares and we have a boiling hot summer, your money won’t do very well because no one is buying umbrellas.
  • If the weather is wet, then you’ll do well. If on the other hand you invest all your money in ice-cream shares and the weather is sunny, you’ll do well; but if it is wet, not so much.
  • Invest half your money in each, then you should make some money whatever the weather.

The same goes for banks, asset classes like shares and bonds, and areas of the world. You should spread your money widely to avoid the risk of putting too much in one place that performs poorly.

How much you should put where is the subject of millions of pages of research over many decades, and depends very much on your tolerance for risk, your timescale and about a zillion other variables.

Investing - Minimise Costs

Keep investment costs (including tax) to a minimum

One of the biggest miracles of life is the miracle of compound interest. Every pound that is created by investing in a portfolio and which is ploughed back in is working for you again. It will create more pounds which are themselves put back in and begin creating their own pounds. Phew. This creates a snowball of money that grows and grows - excellent news.

Conversely, every pound which is spent in investment charges is NOT compounding in this way. You should keep costs to an absolute minimum. This includes tax. Every pound in tax is instead working for the government, compounding for them, rather than you.

That's why we use all the available tax reliefs, wrappers and allowances to reduce your tax burden to a minimum. These are always changing and keeping on top of them can be a pain. It’s the job of a professional adviser to do just that of course.

Investing - Farley's Eyes!

When investing, keep an eye on things!

In my experience, any portfolio set up and then left to its own devices will under perform an equivalent portfolio which is reviewed and updated regularly.

  • Let’s say you set up a portfolio of £200 which is half invested in shares and the other half in bonds.
  • If shares double in value and bonds halve in value, you have a portfolio of £250. But now you have a portfolio which is heavily skewed in favour of shares. 80% of it is now held in shares, so instead of a balanced portfolio, you have ended up with an adventurous one.
  • That’s only a theoretical problem until shares go south and bonds do well. Now you’re heavily exposed to the weaker performing asset and don’t have enough of the balancing asset.
  • If instead you had kept the balance of your portfolio at roughly 50:50 as you had gone along, taking profits from the shares and buying more bonds as their price fell, you would have maintained the balance nicely, and been better placed when bonds rose.

This process is called rebalancing and is part of the discipline of investing and reviewing regularly. The point is that unless you keep an eye on your portfolio at regular intervals, you may suddenly find yourself with money which behaves erratically.

Circumstances, and not just market movements can make it necessary to review things too. A job change, a sudden illness, an inheritance - any one of a thousand different life events can mean a change of tack for your investments.

Stay on your toes and keep an eye on things - just like Farley when there's food around or I am late taking him out for his walks!

Investing - Bullet

If you want to read the other two steps, then click on those links here:

Contact Us - Emma Francis

Please Get In Touch

Contact Us - Emma Francis

You can telephone our office on 01522 788887, we always look forward to speaking with our clients.

Alternatively, you can email us. Our address is

You can telephone our office on 01522 788887, we always look forward to speaking with our clients.

Alternatively, you can email us. Our address is

Or please complete this contact form and we will get back to you as soon as possible!

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Chestnut Financial Services Limited is authorised and regulated by the Financial Conduct Authority, and is entered on the Register under reference 840940.

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Chestnut Financial Services Limited; registered in England and Wales no 9918363, registered office 10 Newark Road, Bassingham, LN5 9HA. VAT Registration Number is 304 9810 11