Long-standing Chase de Vere clients – a couple working in the health industry – recently decided to invest sustainably for their children. Discover how they came to this decision, what the process was like and how they were supported by an independent Chase de Vere financial adviser.
Personalised financial advice
Around 10 years ago, the couple had put their savings into a pension that was separate from their health service pensions. They didn’t intend to draw this pension. Rather, they wanted to pass it on to their children to support them financially.
They were encouraged to do this by Rachel, their Chase de Vere financial adviser. She advised how they could treat their personal pensions as legacy plans for their children as the couple already benefit from generous NHS final salary pensions, particularly since the state pension had come into payment for them.
Rachel also highlighted how their personal pensions wouldn’t form part of the Estate for Inheritance Tax purposes. This made their pensions ideal for legacy planning, particularly as they had other resources to rely on, including ISAs and cash deposits, should their income needs change in later life.
An impactful legacy for their children
How would your children feel if they knew their future inheritance was having a positive impact on the world?
This opened up a meaningful conversation around sustainable investing.
The couple shared how their children were, like them, ethically-minded. This didn’t surprise Rachel – she’s been approached by many clients who’ve said the same thing. Younger generations are especially concerned about global warming. In a global survey, nearly 60% of young people approached said they felt very worried or extremely worried about climate change.
The client was encouraged by the idea that they could leave a legacy that would make their children proud. But, naturally, they had a lot of questions.
Sustainable investing advice
Rachel is an expert ESG financial adviser, with a wealth of experience helping clients transition to sustainable investing to meet their financial and ethical goals.
She helped these particular clients decode sustainable investing and everything it encompasses, answering questions such as:
- What does ESG mean?
- What’s the difference between sustainable and socially responsible investing?
- How do you navigate greenwashing?
- How risky is sustainable investing?
- How do you invest sustainably?
Curious about the answers to these questions? Learn the basics of sustainable investing by downloading our eBook .
Rachel went through the basics but in a much more personal sense, addressing the client’s specific questions. Of particular concern was the volatility of sustainable investing. The client wanted to know whether they would have to sacrifice a portion of their returns to make an impact with their legacy.
Rachel emphasised how sustainable investing is like any form of investing. It’s a profit-seeking venture that’s fixed on long-term financial gains. Of course, as with all investments in financial markets, sustainable investing carries some degree of risk that the investor could lose money.
Rachel explained how the couple could reduce this risk by spreading their money across different investments. She also noted how businesses which act sustainably, for a myriad of reasons, are often primed to perform well (and perhaps even perform better than non-sustainable businesses). For example, the UK government is funding innovators of new technologies (such as alternative energy sources) that are helping to deliver a more sustainable future. The private sector is also eyeing these pioneers as a good investment, and consequently, they are attracting more interest and capital from investors.
There are other reasons why sustainable businesses may outperform non-sustainable businesses in the future. You can learn more in our article: The Financial Case for Sustainable Investing.
With that said, the best way for anyone to protect their money through sustainable investing is by working closely with an expert financial adviser. In this case, the couple had already taken the most sensible first step by working closely with Rachel for their sustainable investments.
Expert financial support
When the couple decided that sustainable investing was right for them, Rachel spent time understanding what the clients’ goals were. Ultimately, they wanted to build a healthy legacy while also supporting businesses that were helping to make the world a better place for future generations. This understanding helped Rachel during the research stage, where she chose best of breed investment funds aligned with the clients’ goals.
Note: a fund is one of the most popular and easy ways to invest. They are an investment where many investors pool their monies and invest in different types of assets, including bonds, shares and property. Funds are run by a manager, who will invest on an individual’s behalf.
Rachel’s research was also backed up by the Chase de Vere internal investment research team, who scrutinise managers and their funds, enabling full transparency and confidence in the solutions available. This helped Rachel make the best possible investment recommendations – funds that are reliable and sustainable.
The clients’ involvement during this stage was minimal: they didn’t need to do any of their own research. They trusted Rachel to handpick the best funds for their portfolio, helping them build a healthy and responsible legacy for their children.
When asked about their experience, the clients described the process as “extremely straightforward” and they felt “reassured throughout”. It helped that they’d known Rachel for many years – she knows the ins and outs of their family and what matters most to them.
The clients were particularly impressed with Rachel’s knowledge not only of sustainable investing but health service pensions. In the end, they felt “comfortable” with the decision to treat their personal pensions as legacy plans for their children based on Rachel’s expertise in this area.
What does the future hold?
The clients are looking forward to seeing how their sustainable investments will perform in the coming years. They’ve also distributed more money into sustainable funds to strengthen their impact on the causes they care most about. This decision was made on their own but was supported by Rachel.
For now, they’ll continue to have biannual meetings to assess the performance of their sustainable funds. The information can be quite overwhelming, so Rachel makes sure to break down the figures so the clients can get a clear picture of their portfolio’s performance.
Are you interested in leaving an impactful legacy for your children? Discuss your options with a Chase de Vere independent adviser today. Call us on 0345 609 2002 or send us your details. We can’t wait to hear from you.
Content correct at the time of writing and is intended for general information only and should not be construed as advice.
Linked to e-book when published [Ge1]
Link to blog when published [Ge2]