Sample Financial Planning Report - Appendix

Appendix

✓ Why Consider Using a Trust?
✓ Illustrations:

◦ Unum Income replacement
◦ Transact ISA contribution
✓ Risk Tolerance Questionnaire
✓ FE Analytics Confident portfolio Snapshot
✓ Growth of Wealth Tilt Graph – Confident

WHY CONSIDER USING A TRUST?

Setting up a trust arrangement need not be a daunting prospect. It is not always appropriate to
use a trust but when it is, Wealth Matters can give you the tools you need.

There are several reasons why clients should consider placing their life policies in trust.

Speed
Policies written on a joint life first death basis will pay out to the survivor in the event of death
without any delay and all that is required is a death certificate. However, where a policy is written
on a single life basis - that policy will not pay out until probate (or Confirmation in Scotland) is
granted on the estate. If on the other hand the policy is written in trust, the trustees can make the
claim and the proceeds will be paid straight away. Even if the policy were on joint lives, there would
still be a delay if both lives die together and again this can be avoided by writing the policy under
trust.

Nomination of beneficiaries
It is often assumed that policy proceeds will be paid to your family in the event of your death.
However, can you be sure that the proceeds will end up in the right hands? Given that the majority
of people in the UK die without leaving a will, instead of passing to a spouse for example, proceeds
can end up being paid to children, parents or even more distant relatives in some cases. Take the
example of a sole trader who dies leaving business debts; his creditors could have a claim on his
estate for repayment of amounts due to them. Simply writing the policy in trust and nominating the
intended beneficiary on the trust form can avoid all this.

Convenience
What if the policy covers critical illness? It is not always the obvious solution to write this in trust
since the life assured usually wishes to have access to any proceeds. However, what happens if the
life assured is too ill to make the claim on the policy? Unless a Lasting Power of Attorney has been
appointed, someone needs to be appointed to act on their behalf by the courts. This can take time
and cost money. If the policy had been written in trust, the trustees could make the claim on the
behalf of the life assured. If the life assured is unable to deal with their own affairs, the trustees can
continue to hold the proceeds on trust for their benefit.

Tax Planning
With escalating property prices, more people have to think about the impact of Inheritance Tax. You
can take some action to reduce the impact – like giving some assets away. You may be reluctant to
give up control or income from your assets in order to achieve any tax savings but there are some
simple steps that can still be taken. For example, proceeds from a life assurance policy will be added
on to the value of the estate on death for Inheritance Tax purposes. Given that you could never
benefit personally from these proceeds, why not write the plan in trust so that any proceeds can be
outside of the estate on death thereby avoiding Inheritance Tax. Even if the policy includes benefits
payable during your lifetime, like critical illness, it can still be possible to find a trust solution to allow
you to keep these benefits while still saving Inheritance Tax on death. The policy will only be
completely free of Inheritance Tax when seven years have elapsed from when it was placed in trust.
There may be other reasons to consider, based on your individual needs and circumstances. The
value of tax benefits will depend on individual circumstances and current tax laws may change.

Illustrations:

✓ Unum - Executive Income Replacement Plan
✓ Transact - Stocks and Shares ISA contribution

Your illustration for an Executive Income Replacement Plan

Prepared for: on 25th March 2020.

• This is an illustration for the Executive Income Replacement Plan you are considering. It shows who the plan

covers and a summary of the cover you have chosen.

• You should read this illustration and keep it with your Key Features document in a safe place.
• Warning: You should remember that there can never be any cash-in value.

Who the plan covers Mrs Carol Sample

Name of life insured Female ( Non-smoker )
Sex
Age on next birthday 62
Date of Birth
Occupation 5th August 1958
Occupation class
Occupation definition Administrator - office

01

Own Occupation

Your Executive Income Replacement Plan summary

• Your benefit will start after your employee has been incapacitated for an unbroken period of 13 weeks.
• Your chosen cover is £3699 per month in the first year of your plan.

• Your cover will increase automatically each year in line with changes to the Retail Prices Index unless you choose otherwise.

• Your chosen cover is designed to stop on your 67th birthday. Your benefit will be paid for up to a maximum of 2 years.

• If you claim, your benefit payments will not increase each year. You can choose to have your benefit payments increase in claim but
this will require a revised illustration.

• You should read the Key Features document UP263 09/2018 with this illustration for further details about this plan.

• Important Note: The basic monthly benefit must not exceed 80% of your employee's earnings (including the
taxable value of benefits-in-kind) . You may, in addition, cover the employer's National Insurance, death-in-
service and pension contributions. Please note that certain limits apply. You will find details in the Key
Features document.

18761049/300635/IOQS Exchange : 267672802 Page: 1

What will my payments be?

• The cost of your cover will be £293.33 each month and over the term of your plan you could pay total

premiums of £17599.80.

• The premiums that you pay are reviewable. This means that the premiums you pay each month and over

the term of the plan may differ from those quoted.

• The premiums that you pay will also change if the amount of cover changes at any stage during the

plan term. This could include yearly inflation-linked increases.

• Remember that, in the event of a valid claim, we will pay up to £44388 a year.
• The premium figures are illustrative only. Please refer to your Key Features Document for more

information about premiums, premium reviews and the benefits you can claim.

NOTES:
1.

This illustration assumes your application will be accepted at the normal premium rate for the stated occupation.

2. The premium rates illustrated are available to you for 28 days to accept.
3. The premiums shown are those payable during the first year of your plan.
4. You don't have to make payments if you are receiving benefit or in the last 13 weeks before your plan ends.

5.

This illustration is only applicable if you regularly work 21 to 60 hours each week. A weekly working pattern of 61 to 79 hours may
be insurable at extra cost.

6.

This illustration assumes benefit is within our maximum limit.
7. This illustration depends on the full details of the stated occupation.

How much does the advice cost?

• For arranging this plan, we'll pay commission to your financial adviser, Wealth Matters. The commission

figures shown are for illustration. Your adviser's commission from Unum depends upon the start date
and end date of your plan and the payments you make.

• With your chosen benefits each year, the commission we pay will be: a single payment of £2970.40. This

includes additional commission which will be paid if your adviser submits your application using
UnumOnline. We will also pay, from month 23 until your last premium payment, £11.73 monthly.

Unum Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Registered in England 983768. Registered Office: Milton Court, Dorking, Surrey, RH4 3LZ.
Tel: 01306 887766 Fax: 01306 881394 Textphone: 01306 887784

We monitor telephone conversations and e-mail communications from time to time for the purposes of training and in the interests of continually improving the quality of service we provide.

Copyright © Unum Limited 2020

18761049/300635/IOQS Exchange : 267672802 Page:

Transact Stocks and Shares ISA Personalised Illustration

The Financial Conduct Authority is a financial services regulator. It requires us, Integrated Financial
Arrangements Ltd, to give you this important information to help you decide whether the Transact
Stocks and Shares ISA is right for you. You should read this document carefully so that you
understand what you are buying, and then keep it safe for future reference.

Purpose of this illustration
This illustration shows what you might get back from your Transact Stocks and Shares ISA. You
should read it in conjunction with the Transact Illustration and Packaged Product Pre-sale
Documentation Guide and the Transact Stocks and Shares ISA KFD/KID, which provide more
information on the benefits, risks, charges and tax relating to your Transact Stocks and Shares ISA.

Wrapper: Stocks and Shares ISA Illustration Date: 25th March 2020

Personal Details Julian Gilbert (No.2 account)
Mr Adam Sample
Prepared by
Prepared for

Contributions

A summary of your future contributions into your Portfolio used in this illustration:

Type Value Balance Available
£19,800.00
Lump sum deposit £20,000.00

Investments

A summary of the assumed growth rates for your chosen investments.

Assumed Growth Rates

Name ISIN Amount % of Allocated Low Mid High
(unique identifier)
Invested Amount

New Investments purchased from the Lump sum deposit

Cash IE00BYVJQW70 £396.00 2.00% (1.50%) 1.50% 4.50%
£1,781.11 9.00% 2.00% 5.00% 8.00%
Dimensional Emerging Mkts Large Cap Core Equity GBP
(Acc)IRE £1,781.11 9.00% (0.60%) 2.40% 5.40%
£1,781.11 9.00% 2.00% 5.00% 8.00%
Dimensional Global Short Dated Bond (Acc) GB0033772848 4.00% 2.00% 5.00% 8.00%
£791.60 4.00% 2.00% 5.00% 8.00%
Dimensional Global Value Fund (Acc) IRE IE00B3NVPH21 £791.60 13.00% 2.40% 5.40%
£2,572.71 25.00% (0.60%) 5.00% 8.00%
Dimensional UK Core Equity Fund (Acc) GB00B15JMH94 £4,947.53 2.00%
8.00% 2.40% 5.40%
iShares Global Property Securities Equity Index D (Acc) GB00B5BFJG71 £1,583.21 9.00% (0.60%) 5.00% 8.00%
£1,781.11 8.00% 2.00% 2.40% 5.40%
Legal & General All Stocks Index Linked Gilt Index I (Acc) GB00B84QXT94 £1,583.21
Vanguard FTSE Developed World ex-UK Equity Index Fund GB00B59G4Q73 (0.60%) 4.09% 7.09%
(Acc)
1.09%
Vanguard Global Bond Index GBP Hedged (Acc) IRE IE00B50W2R13

Vanguard Global Small-Cap Index GBP (Acc) IRE IE00B3X1NT05

Vanguard UK Investment Grade Bond Index GBP (Acc) IRE IE00B1S74Q32

Overall assumed Weighted Growth Rate

"Transact" is operated by Integrated Financial Arrangements Ltd, 29 Clement's Lane, London, EC4N 7AE web: www.transact-online.co.uk (Registered office: as before;
Registered in England and Wales under number: 3727592) Authorised and regulated by the Financial Conduct Authority (190856)

Page 1 of 5

Projected benefits

The table below sets out what your Transact Stocks and Shares ISA might be worth using the low, mid and high
growth rates of return.

What your Stocks and Shares ISA might be worth

End of Total paid in Low growth Mid growth High growth
year to date
1 £20,000 £19,600 £20,100 £20,700
2 £20,000 £19,400 £20,600 £21,800
3 £20,000 £19,200 £21,000 £22,900
4 £20,000 £19,100 £21,400 £24,000
5 £20,000 £18,900 £21,900 £25,300
10 £20,000 £18,200 £24,400 £32,500
15 £20,000 £17,500 £27,300 £41,800
20 £20,000 £17,000 £30,600 £54,100

Important information to bear in mind about your projected benefits

These figures are only examples and are not guaranteed. They are not minimum or maximum amounts.
The value of your Transact Stocks and Shares ISA can fall as well as rise. You may get back less than you
paid in.
Do not forget that inflation will reduce what you can buy in the future with the amounts shown.
What you will get back depends on a number of factors, including:

the contributions you make. This illustration is based on the contributions detailed on page 1
the period your plan is invested
the investments you choose and their performance
the charges that apply
any tax that may be due. This will depend on your individual circumstances and it may change at any
time.
The projections include all of the charges detailed in this illustration. Please note that the charges you pay will
depend upon the investments you choose and the frequency of trading.
Every three months we will send you a valuation of your Portfolio to help you keep track of your investments.

What are the Costs and Charges?

This section shows an estimate of all the costs and charges payable in the next 12 months.

Service Charges

These are charges deducted from your Transact Wrapper.

Adviser Charges Type 1.00% £200.00
Portfolio Establishment Fee Lump sum deposit 1.00% £200.41
Annual Payment £400.41
Total

Transact Charges

Buy Commission Lump sum deposit 0.05% £9.70
0.50% £100.21
Annual Commission
£12.00
Administration Wrapper Charge £121.91

Total

Total Service Charges £522.32

"Transact" is operated by Integrated Financial Arrangements Ltd, 29 Clement's Lane, London, EC4N 7AE web: www.transact-online.co.uk (Registered office: as before;
Registered in England and Wales under number: 3727592) Authorised and regulated by the Financial Conduct Authority (190856)

Page 2 of 5

Investment Charges

This table illustrates the investment costs and charges incurred in the next 12 months. These are deducted by the investment
provider at investment level.

ISIN Investment Initial Ongoing Transactional Incidental Total Costs
(unique Exit Costs (excludes Exit Costs)
identifier) Amount Charges Charges Costs Costs

New Investments

Cash £396.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% £0.00

Dimensional Emerging Mkts Large Cap Core Equity IE00BYVJQW70 £1,781.11 0.00% 0.50% 0.09% N/A 0.00% 0.59% £10.69
GBP (Acc)IRE GB0033772848 £1,781.11 0.00% 0.30%
Dimensional Global Short Dated Bond (Acc) 0.02% N/A 0.00% 0.32% £5.76

Dimensional Global Value Fund (Acc) IRE IE00B3NVPH21 £1,781.11 0.00% 0.39% 0.10% N/A 0.00% 0.49% £8.88

Dimensional UK Core Equity Fund (Acc) GB00B15JMH94 £791.60 0.00% 0.22% 0.01% N/A 0.00% 0.23% £1.85

iShares Global Property Securities Equity Index D GB00B5BFJG71 £791.60 0.00% 0.18% 0.03% N/A 0.00% 0.21% £1.68
(Acc) GB00B84QXT94 £2,572.71 0.00% 0.15% 0.00% 0.14% £3.60
Legal & General All Stocks Index Linked Gilt Index I GB00B59G4Q73 £4,947.53 0.00% 0.14% (0.01%) 0.00% 0.00% 0.16% £8.06
(Acc) IE00B50W2R13 £1,583.21 0.00% 0.15% 0.00% 0.28% £4.44
Vanguard FTSE Developed World ex-UK Equity Index 0.02% N/A
Fund (Acc) 0.13% N/A
Vanguard Global Bond Index GBP Hedged (Acc) IRE

Vanguard Global Small-Cap Index GBP (Acc) IRE IE00B3X1NT05 £1,781.11 0.00% 0.31% 0.04% N/A 0.00% 0.35% £6.34

Vanguard UK Investment Grade Bond Index GBP (Acc)

IRE IE00B1S74Q32 £1,583.21 0.00% 0.12% (0.05%) N/A 0.00% 0.07% £1.08

Total £19,790.30 £52.38

Weighted Average Charge 0.00% 0.23% 0.03% 0.00% 0.00% 0.26%

Total Wrapper Costs and Charges for Years 1 and 2

Your service and investment costs and charges are combined here. The percentages have been calculated

based on the average Portfolio value for each year.

Percentage Monetary Amount

Year 1 2.87% £574.70

Year 2 1.82% £372.48

Important information to bear in mind about costs and charges

Your illustration includes a negative transactional cost for one or more of your chosen Investments. This has
arisen because of the calculation methodology specified by the regulators.
The charges you pay to your Adviser are likely to cover more than just investment advice, therefore might not
be comparable with a disclosure for investment advice alone. Please speak to your Adviser if you are not sure of
the full range of services you will receive.
Where investment charges are not provided by the investment provider, reasonable estimates are used.
Every effort has been made to ensure that the investment charges are accurate as at the date of release of
this illustration. However these are subject to change without notice.
The initial charge does not apply for Investments already held, therefore 'N/A' is displayed instead. Purchases
are made using Pounds Sterling (GBP), therefore you may experience a reduction in the sum invested when
purchasing investments denominated in other currencies. No estimate of charges is included in the calculation
of total Wrapper costs and charges for years 1 and 2.
Investments traded on an exchange will incur a third-party dealing charge and this illustration has had an
estimated amount applied. The actual charge can vary and is likely to be higher on the rare occasions where we
have to use a specialist broker to ensure best execution in accordance with our order execution policy. Further
details can be found in the leaflet "Order Execution Third Party Charges", available on Transact Online. If
applicable, ongoing charges are displayed net of any rebates agreed with the fund manager (which are used to
purchase units in a Rebate Reinvestment Fund).
Exit costs are not included in the calculation of total Wrapper costs and charges for years 1 and 2. The
maximum exit charge will be displayed where the fund manager has not provided a typical exit charge.
All costs and charges are calculated and deducted in Pounds Sterling (GBP). In the rare instances where the
investment charge is calculated by reference to a non-GBP price, the exchange rate used to convert to GBP
will be the published 24 hour rolling average from the previous day.
The 'Weighted Average Charge' is weighted according to the allocated amount of the contribution applied to
each Investment. As Investments have different growth rates the allocations will change over time and,

"Transact" is operated by Integrated Financial Arrangements Ltd, 29 Clement's Lane, London, EC4N 7AE web: www.transact-online.co.uk (Registered office: as before;
Registered in England and Wales under number: 3727592) Authorised and regulated by the Financial Conduct Authority (190856)

Page 3 of 5

therefore, the 'Weighted Average Charge' will almost certainly change over time.

We do not keep any interest on your cash balances, we credit all interest to your Portfolio.
For purchases that are intended to be paid for using cash generated from the sale of an Investment, we have
calculated and shown the amount to be paid to your Adviser using the 'Switch Payment' percentage specified
by you. If and to the extent that purchases are, in fact, paid for using cash that has not been generated from
the sale of an Investment, we will calculate at least part of the amount to be paid to your Adviser using the
'Initial Payment' percentage instead, which may result in a higher payment to your Adviser than the amount
shown.

We endeavour to provide accurate charging information in this illustration. Actual charges incurred will be
shown in your annual report.

How much will the advice cost?

Your adviser's Initial Payment will depend on the size of your contribution and, for Annual Payments, on the
value of your investments. An Annual Payment is also payable on a monthly basis. For example, a maximum
payment of £200.41 will be paid at the end of year 1 and £217.75 at the end of year 5, based on the mid
growth rate used in this illustration.

Transact's Annual Commission

Transact's Annual Commission is reduced when the value of your Investments, including any linked Portfolios,
exceeds our discount thresholds. The following table shows the average Transact Annual Commission associated
with this illustration. We have assumed that all underlying Investments remain the same throughout the
projection period.

End of year What the transfer value might be Transact Annual Commission
1 £20,100 0.50%
2 £20,600 0.50%
3 £21,000 0.50%
4 £21,400 0.50%
5 £21,900 0.50%
10 £24,400 0.50%
15 £27,300 0.50%
20 £30,600 0.50%

"Transact" is operated by Integrated Financial Arrangements Ltd, 29 Clement's Lane, London, EC4N 7AE web: www.transact-online.co.uk (Registered office: as before;
Registered in England and Wales under number: 3727592) Authorised and regulated by the Financial Conduct Authority (190856)

Page 4 of 5

How the charges reduce the growth of your Transact Stocks and Shares ISA
The following table highlights the effect that charges may have on the value of your Wrapper.
The projection is based on the mid investment growth rates.

End of Year Total paid in Effect of deductions What you might get back
to date to date
1 £20,000 £589 £20,100
2 £20,000 £992 £20,600
3 £20,000 £1,410 £21,000
4 £20,000 £1,870 £21,400
5 £20,000 £2,350 £21,900
10 £20,000 £5,200 £24,400
15 £20,000 £8,970 £27,300
20 £20,000 £13,900 £30,600

The last line in the table shows that the deductions could reduce the Transact Stocks and Shares ISA value by
£13,900 to £30,600. Charges have the effect of reducing the investment growth on your plan. The effect of the
deductions shown above is the same as reducing the growth from 4.1% to 2.2%, a reduction of 1.9%.

You can use the reduction in growth percentages to compare the effect of charges with similar products.

Privacy Notice

Your personal data entered on this Personal Illustration will be held for a period of up to 180 days from it being
entered via Transact Online by your Adviser. None of the information we have gathered in this way will be
shared by us with any third parties. Your data is processed for this purpose on the basis of our legitimate
business interest under section 1(f) of Article 6 of the General Data Protection Regulation (GDPR).

You should read our Standard Privacy Notice and any wrapper specific privacy notices pertinent to you for more
information on who we are and your rights under GDPR. You can obtain copies of all our privacy notices via our
website (www.transact-online.co.uk/important-information) or by requesting one from us.

"Transact" is operated by Integrated Financial Arrangements Ltd, 29 Clement's Lane, London, EC4N 7AE web: www.transact-online.co.uk (Registered office: as before;
Registered in England and Wales under number: 3727592) Authorised and regulated by the Financial Conduct Authority (190856)

Risk Tolerance Questionnaire

PERSONAL FINANCIAL RISK TOLERANCE REPORT

Name: Adam & Carol Sample
Score: 57
Agreed Score: -
Date: 14 April 2020

YOUR RISK TOLERANCE SCORE 2

Your risk tolerance score enables you to compare yourself to a representative sample of the adult population. Your score is
57. This is a higher-than-average score, higher than 74% of all scores.

When scores are graphed they form a bell-curve as shown below. To make the scores more meaningful, the 0 to 100 scale
has been divided into seven risk groups. Your score places you in risk group 5.

In answer to the last question, you estimated your score would be 48. Most people under-estimate their score by a few
points. Yours was a slightly bigger under-estimate. When compared to others you are somewhat more risk tolerant than
you thought you were.

RISK GROUP 3

Overview
The description of risk group 5 which follows provides a summary of the typical attitudes, values, preferences and
experiences of those in your risk group. It summarizes how those in your risk group usually answer the risk tolerance
questionnaire. Only one of your answers differed from this description. It is shown in italics below the relevant part and in
the Summary section that follows.

Making Financial Decisions
Investors in risk group 5 think of "risk" as "uncertainty" or "opportunity" and are prepared to take a medium degree of risk
with their financial decisions (Q3 & 10). Most have a reasonable amount of confidence in their ability to make good financial
decisions and some have a great deal of confidence (Q12). They usually feel somewhat optimistic about their major
decisions after they make them (Q7). When faced with a major financial decision they are usually more concerned about the
possible gains (Q6).

When faced with a major financial decision you are usually more concerned about the possible losses.

Employment
They would be slightly more likely to choose less job security with a big pay increase than more job security with a small
pay increase and most would choose to be paid an equal mix of salary and commission while others would choose mainly
salary (Q5 & 8).

Financial Disappointments
When things go wrong financially, while some adapt somewhat uneasily, most adapt somewhat easily (Q2).

Financial Past
They have taken a medium degree of risk with their past financial decisions and most have never invested a large sum of
money in a risky investment mainly for the "thrill" of seeing whether it went up or down in value (Q9 & 4).

Investment
It is somewhat to much important that the value of their investments retains its purchasing power than that it does not
fall, more likely somewhat more important (Q18). For some, a fall of 20% in the total value of their investments would make
them feel uncomfortable but for most it would take a 33% fall (Q14). In recent years, for most there have been no changes
in the risk of their personal investments but for those that have changed, the changes have been mostly towards higher
risk (Q19). Over ten years they expect an investment portfolio to earn, on average, from about two and a half to more than
three times the rate from bank deposits (Q21).
Given the portfolio choices below, they prefer Portfolios 4 or 5, more likely Portfolio 4 (Q16).

Government Benefits and Tax Advantages
Most would take a risk in arranging their affairs to qualify for a government benefit or obtain a tax advantage so long as
there was only a small chance they could finish up worse off than if they had done nothing. However some would take a
risk if there was a better than 50% chance of finishing up better off (Q22).

RISK GROUP 4

DIFFERENCES 5

Making Financial Decisions RISK GROUP
Q3 Meaning of "Risk" 1234567
Q10 Current Risk-Taking
Q12 Confidence In Decisions 
Q7 Feel After Decisions 
Q6 Losses v Gains 



Employment 
Q8 Salary v Commission 
Q5 Job Security v Pay Increase

Financial Disappointments 
Q2 Adaptability

Financial Past 
Q9 Risk Taking? 
Q4 Thrill Investing

Investment 
Q18 Face vs Real Value 
Q14 Downside Comfort 
Q19 Risk Changes? 
Q21 10-year Returns 
Q16 Preferred Portfolio

Government Benefits and Tax Advantages 
Q22 Take a Risk?

RISK RESPONSES 6

1 Compared to others, how do you rate your willingness to take financial risks?

1. Extremely low risk taker.
2. Very low risk taker.
3. Low risk taker.
4. Average risk taker. 
5. High risk taker.
6. Very high risk taker.
7. Extremely high risk taker.

2 How easily do you adapt when things go wrong financially?

1. Very uneasily.
2. Somewhat uneasily. 
3. Somewhat easily.
4. Very easily.

3 When you think of the word "risk" in a financial context, which of the following words comes to mind first?

1. Danger.
2. Uncertainty.
3. Opportunity. 
4. Thrill.

4 Have you ever invested a large sum in a risky investment mainly for the "thrill" of seeing whether it went up or down in
value?

1. No.
2. Yes, very rarely. 
3. Yes, somewhat rarely.
4. Yes, somewhat frequently.
5. Yes, very frequently.

5 If you had to choose between more job security with a small pay increase and less job security with a big pay increase,
which would you pick?

1. Definitely more job security with a small pay increase.
2. Probably more job security with a small pay increase. 
3. Not sure.
4. Probably less job security with a big pay increase.
5. Definitely less job security with a big pay increase.

6 When faced with a major financial decision, are you more concerned about the possible losses or the possible gains?

1. Always the possible losses.
2. Usually the possible losses. 
3. Usually the possible gains.
4. Always the possible gains.

RISK RESPONSES 7

7 How do you usually feel about your major financial decisions after you make them?

1. Very pessimistic.
2. Somewhat pessimistic.
3. Somewhat optimistic. 
4. Very optimistic.

8 Imagine you were in a job where you could choose whether to be paid salary, commission or a mix of both. Which would
you pick?

1. All salary.
2. Mainly salary.
3. Equal mix of salary and commission. 
4. Mainly commission.
5. All commission.

9 What degree of risk have you taken with your financial decisions in the past?

1. Very small.
2. Small.
3. Medium. 
4. Large.
5. Very large.

10 What degree of risk are you currently prepared to take with your financial decisions?

1. Very small.
2. Small.
3. Medium. 
4. Large.
5. Very large.

11 You have an opportunity to make an investment that appears to be almost certain to produce a sizeable return.
However, you have no funds to put towards this investment. One option is to borrow money for this purpose. How likely
is it that you would do this?

1. Very unlikely.
2. Somewhat unlikely.
3. Somewhat likely. 
4. Very likely.

12 How much confidence do you have in your ability to make good financial decisions?

1. None.
2. A little.
3. A reasonable amount. 
4. A great deal.
5. Complete.

RISK RESPONSES 8

13 Suppose that 5 years ago you bought shares in a highly regarded company. That same year the company experienced a
severe decline in sales due to poor management. The price of the shares dropped drastically and you sold at a
substantial loss.

The company has been restructured under new management and most experts now expect it to produce better than
average returns. Given your bad past experience with this company, would you buy shares now?

1. Definitely not.
2. Probably not.
3. Not sure. 
4. Probably.
5. Definitely.

14 Investments can go up or down in value and experts often say you should be prepared to weather a downturn. By how
much could the total value of all your investments go down before you would begin to feel uncomfortable?

1. Any fall in value would make me feel uncomfortable.
2. 10%.
3. 20%.
4. 33%. 
5. 50%.
6. More than 50%.

15 Assume that a long-lost relative dies and leaves you a house which is in poor condition but is located in a suburb that's
becoming popular.

As is, the house would probably sell for £150,000, but if you were to spend about £50,000 on renovations, the selling
price would be around £300,000. However, there is some talk of constructing a major motorway next to the house, and
this would lower its value considerably.

Which of the following options would you take?

1. Sell it as is. 
2. Keep it as is, but rent it out.
3. Take out a £50,000 mortgage and do the renovations.

RISK RESPONSES 9

16 Most investment portfolios have a mix of investments - some of the investments may have high expected returns but
with high risk, some may have medium expected returns and medium risk, and some may be low-risk/low-return. (For
example, shares and property would be high-risk/high-return whereas cash and bank deposits would be low-risk/low-
return.)

Which mix of investments do you find most appealing? Would you prefer all low-risk/low-return, all high-risk/high-return,
or somewhere in between?

1. Portfolio 1.
2. Portfolio 2.
3. Portfolio 3.
4. Portfolio 4.
5. Portfolio 5. 
6. Portfolio 6.
7. Portfolio 7.

17 You are considering placing one-quarter of your investment funds into a single investment. This investment is expected
to earn about twice the bank deposit rate. However, unlike a bank deposit, this investment is not protected against loss
of the money invested.

How low would the chance of a loss have to be for you to make the investment?

1. Zero, i.e. no chance of any loss.
2. Very low chance of loss.
3. Moderately low chance of loss. 
4. 50% chance of loss.

18 With some types of investment, such as cash and bank deposits, the value of the investment is fixed. However inflation
will cause the purchasing power of this value to decrease.

With other types of investment, such as shares and property, the value is not fixed. It will vary. In the short term it may
even fall below the purchase price. However over the long term, the value of the shares and property should certainly
increase by more than the rate of inflation.

With this in mind, which is more important to you - that the value of your investments does not fall or that it retains its
purchasing power?

1. Much more important that the value does not fall.
2. Somewhat more important that the value does not fall.
3. Somewhat more important that the value retains its purchasing power.
4. Much more important that the value retains its purchasing power. 

19 In recent years, how have your personal investments changed?

1. Always toward lower risk.
2. Mostly toward lower risk.
3. No changes or changes with no clear direction. 
4. Mostly toward higher risk.
5. Always toward higher risk.

RISK RESPONSES 10

20 When making an investment, return and risk usually go hand-in-hand. Investments which produce above-average returns
are usually of above-average risk.

With this in mind, how much of the funds you have available to invest would you be willing to place in investments
where both returns and risks are expected to be above average?

1. None.
2. 10%.
3. 20%.
4. 30%.
5. 40%.
6. 50%.
7. 60%.
8. 70%. 
9. 80%.
10. 90%.
11. 100%.

21 Think of the average rate of return you would expect to earn on an investment portfolio over the next ten years. How
does this compare with what you think you would earn if you invested the money in bank deposits?

1. About the same rate as from bank deposits.
2. About one and a half times the rate from bank deposits.
3. About twice the rate from bank deposits.
4. About two and a half times the rate from bank deposits.
5. About three times the rate from bank deposits.
6. More than three times the rate from bank deposits. 

22 People often arrange their financial affairs to qualify for a government benefit or obtain a tax advantage. However a
change in legislation can leave them worse off than if they'd done nothing.

With this in mind, would you take a risk in arranging your affairs to qualify for a government benefit or obtain a tax
advantage?

1. I would not take a risk if there was any chance I could finish up worse off.
2. I would take a risk if there was only a small chance I could finish up worse off. 
3. I would take a risk as long as there was more than a 50% chance that I would finish up better off.

23 Imagine that you are borrowing a large sum of money at some time in the future. It's not clear which way interest rates
are going to move - they might go up, they might go down, no one seems to know. Given the two types of loans below,
which are you likely to take?

A variable interest rate that will rise and fall as the market rate changes.
A fixed interest rate which is 1% more than the variable rate but which won't change as the market rate changes.

1. Definitely the variable rate.
2. Probably the variable rate.
3. Probably the fixed rate. 
4. Definitely the fixed rate.

RISK RESPONSES 11

24 Insurance can cover a wide variety of life's major risks - theft, fire, accident, illness, death etc. Some insurance policies
allow you to choose an “excess” i.e. the amount of loss that the insurance company will not reimburse. The higher the
excess, the lower the cost of insurance. If you were making a choice today, what excess would you choose?

1. Very small or no excess – highest cost of insurance.
2. Small excess – high cost of insurance.
3. Large excess – low cost of insurance. 
4. Very large excess – lowest cost of insurance.

25 This questionnaire is scored on a scale of 0 to 100. When the scores are graphed they follow the familiar bell-curve of
the Normal distribution shown below. The average score is 50. Two-thirds of all scores are within 10 points of the
average. Only 1 in 1000 is less than 20 or more than 80.

What do you think your score will be?

ADAM & CAROL

48

DEMOGRAPHIC RESPONSES 12

1 I am

1. Male.
2. Female.
3. Other. 

2 My year of birth is
1.  1975

3 The highest education level I attained, or the closest equivalent, is

1. Completed O levels or GCSEs.
2. Completed A levels.
3. Trade or diploma qualification.
4. University degree or higher qualification. 

4 Having in mind income from all sources - work, investment, family and government - into which income bracket does
your personal before-tax annual income fall?

1. Under £10,000.
2. £10,000 - £19,999.
3. £20,000 - £49,999.
4. £50,000 - £99,999. 
5. £100,000 - £199,999.
6. £200,000 - £399,999.
7. £400,000 or over.

5 Are you married (or in a de facto relationship)?

1. Yes. 
2. No.

6 If "Yes", into which income bracket does your combined before-tax annual income fall?

1. Under £10,000.
2. £10,000 - £19,999.
3. £20,000 - £49,999.
4. £50,000 - £99,999. 
5. £100,000 - £199,999.
6. £200,000 - £399,999.
7. £400,000 or over.

DEMOGRAPHIC RESPONSES 13

7 How many people in your family, besides yourself, do you fully or partially support financially?

1. 0
2. 1
3. 2
4. 3
5. 4 
6. 5
7. 6
8. 7
9. 8
10. 9
11. 10

8 Think of your net worth as being what you own, including your family home and other personal-use assets, minus what
you owe. Into which bracket does the value of your net worth fall? (If you are married or have a de facto partner, include
only your share of jointly owned assets less your share of what you owe jointly.)

1. Under £5,000.
2. £5,000 - £9,999.
3. £10,000 - £19,999.
4. £20,000 - £49,999.
5. £50,000 - £99,999.
6. £100,000 - £199,999.
7. £200,000 - £499,999. 
8. £500,000 - £999,999.
9. £1,000,000 - £1,999,999.
10. £2,000,000 - £4,999,999.
11. £5,000,000 - £9,999,999.
12. £10,000,000 or over.

PORTFOLIO GAP ANALYSIS 14

INVESTMENT SNAPSHOT

Q14: The total value of all your investments could go down by 33% before you would begin to feel
uncomfortable.

Q16: You prefer a portfolio mix of 50% High risk/return, 40% Medium risk/return and 10% Low risk/return
(70% Growth Assets).

Q21: Over ten years you would expect average earnings of more than three times the rate from bank
deposits.

GROWTH ASSETS COMFORT ZONE

Too Much / Too Little Risk Marginal Risk OK Risk 

Adam & Carol Sample (57)

Target 0%
Current 0%

0% 50% 100%
GROWTH ASSETS

Historical Portfolio Performance for FinaMetrica's Illustrative Portfolios

United Kingdom v3.0

Worst Fall -7.2% -7.9% -10.1% -15.9% -21.5% -26.9% -31.7% -36.6% -41.6% -46.6% -49.8%

Best Rise 37.9% 42.9% 54.1% 52.8% 37.9% 39.4% 41.8% 44.2% 45.7% 46.1% 48.8%

Multiple of Rate from Bank Deposits 1.69 1.78 1.90 2.01 2.09 2.16 2.22 2.28 2.33 2.36 2.40

10yrs Real Annualised Return 3.7% 4.2% 4.6% 5.0% 5.3% 5.6% 5.8% 6.0% 6.2% 6.4% 6.5%

10yrs Real End Value of £1,000 £1,487 £1,553 £1,620 £1,688 £1,744 £1,799 £1,852 £1,904 £1,956 £2,006 £2,039

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GROWTH ASSETS

HOW TO USE THIS REPORT 15

If you are one of a couple, your partner should also do a separate risk tolerance questionnaire. Few couples have the same
risk tolerance, so a 'joint' questionnaire simply won’t work.
Comparing the individual results will highlight the differences between the couple and ensure these are addressed in
financial decisions. Similarly, where you are acting on behalf of someone else, e.g. under a power of attorney or as trustee,
your own risk tolerance remains relevant but must be considered in the context of your responsibilities.
Understanding Financial Risk Tolerance
People usually cannot immediately describe their attitudes to risk, because it is not something that they generally think
about. This profile helps to draw out those experiences, feelings and attitudes and guide you in your financial decision-
making.
Risk tolerance is a personal trait - partly down to genetics and partly down to life experiences. It is a 'stable' part of our
personality, which means that over time we tend to stay who we are.
Typically, risk tolerance does decrease slowly with age and may be changed by major life events, good or bad. This means
that your risk tolerance should be retested every two or three years and also after any major life event.
Your risk tolerance profile is built using 'psychometrics', which is a combination of psychology and statistics. The science of
creating psychometric questionnaires is very complex, which is why it took many years of academic work to create and
road-test this questionnaire. But the results are simple - you will get a clear and accurate 'picture' of exactly who you are
and where you 'fit' on that scale of very conservative to high risk taker.
Using Your Risk Tolerance Profile with an Advisor
Your risk tolerance profile compares your answers to those given by a very large sample of the adult population.
If you use a financial advisor, the report, particularly if your answers differ from other people in your risk group, should be
discussed with your financial advisor. Notes of this discussion, including modifications of, or expansions on, particular
aspects of your report, should be signed-off by both you and your financial advisor, to ensure you both have the same
understanding of your risk tolerance.
Your advisor will use your results to:

Explain the risks that come with your financial decisions.
Explore with you trade-offs that you might need to make between risk and return in order to achieve your financial
goals.
Help choose investments that are suitable for you.

While we fully support the profile itself, we cannot endorse or support any specific decision you may make because we are
not privy to all the other information that effective financial decision making requires. Think of your risk tolerance profile as
the financial services equivalent of your blood pressure reading. While an accurate blood pressure reading does not, by
itself, determine a diagnosis or treatment, it does provide critically important information.
For more information about Risk, Risk Tolerance and the FinaMetrica system see the Footnotes.

SIGNATURE 16

ADAM & CAROL SAMPLE

Signature
Date

Advisor: Julian Gilbert
Wealth Matters

Signature
Date

FE Analytics
Confident Portfolio Snapshot













Growth of Wealth Tilt Graph
Confident

Growth of Wealth

Monthly: 01.01.1994 – 31.12.2019

Performance data shown represents past performance and is not a guarantee of future results. Current performance may be higher or lower than
the performance shown. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed,
may be worth more or less than their original value. Average annual total returns include reinvestment of dividends and capital gains.
*Source of information: Dimensional.com

Performance Summary Statistics

Monthly: 01.01.1994 – 31.12.2019

Annualised number is presented as an approximation by multiplying the monthly or quarterly number by the square root of the number of periods in a
year. Please note that the number computed from annual data may differ materially from this estimate.
Performance data shown represents past performance and is not a guarantee of future results. Current performance may be higher or lower than the
performance shown. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth
more or less than their original value. Average annual total returns include reinvestment of dividends and capital gains. *Source of information:
Dimensional.com