INVESTMENT MANAGEMENT: Financial Advice to Mr. Philip Lewis

Investment Management

Introduction

Mr. Lewis, as per our meeting your financial credentials have been analyzed thoroughly and a financial plan has been designed as per your needs. This financial plan is not a fix criterion for your investment, but it will provide you a guideline on your investment needs and strategies in future. The reason for deviations in the plan is mainly due to the ever-changing market situations and government regulations with respect to financial market and instruments, which can be in your favor in future or may deteriorate the financial conditions. As of today a plan have been sketched out a plan which can help you in maintaining a balanced portfolio and to suffice your future financial needs. The report has several distinct sections which will be providing an in-depth analysis of each of your investment needs and how they can be improved. All the analysis is dependent on your needs of future finances and your risk appetite.

Current portfolio analysis is carried out and recommendations are provided on improving the mix of portfolio. Evaluation of pension plans and recommendations for investing in a suitable pension plan. Different possibilities have been evaluated for investment options. Expense will be reduced and amount will be invested in other avenues, which can provide return to Mr. Lewis in short-term and long-term.

Goals and Objectives

First and the foremost objective of the financial plan is make sure that the inheritance of £50,000, which the you have received and to make sure that the inheritance works in favor of your polices for future financial needs.

Reduce your expenses and find any cheaper alternative to the current expenses so that client can save and invest that money on different financial avenues. The money saved can also be spent on the needs of your dependent family members.

Analysis of the portfolios held and changing the mix of portfolios in order to ensure a safe investment plan.

Evaluating and recommending a suitable pension plan for Mr. Lewis.

Evaluation of mortgage plans for financing the need of purchasing a home in future.

General Assumptions

Certain assumptions are made in order to ensure the credibility of financial plan. Key indicators are used which affect the quality of returns as well as savings and expenses of the individual. Inflation rate and returns on investment classes have been identified which will affect the future prices resulting in increase or decrease in expenses and rate of returns on different asset classes which will determine the quality of the assets to be considered as an investment option and the potential return those assets will provide.

Inflation and wage growth

Inflation rate in UK will remain at 2.7% in future. The reason for the increasing inflation rate is due to the ongoing adjustment which the British economy is making in the economy in order to reconstruct it after the global economic crisis and the recession. The BOE's target inflation is 2% is not yet achievable until and unless the private sectors wage growth ...