Category: Financial Planning

Financial Planning

How Much Money Do You Need For Financial Advice?

Post author By Edward Mills
Post date November 28, 2023
No Comments on How Much Money Do You Need For Financial Advice?

How Much Money Do You Need For Financial Advice?

“Wise men don’t need advice. Fools won’t take it” ― Benjamin Franklin

3 min read

How Much Money Do You Need For Financial Advice?

“Wise men don’t need advice. Fools won’t take it” ― Benjamin Franklin

3 min read

Financial advice is often perceived as a service reserved for the wealthy. But is that really the case? Whilst it may seem obvious that with increased wealth comes an increased need for advice, Patterson Mills are here to dispel the myths and misconceptions surrounding financial advice, exploring its accessibility, costs, and the value it brings, regardless of your financial standing.

The Accessibility of Financial Advice

Contrary to popular belief, financial advice is not exclusively for high-net-worth individuals. In recent years, the financial advisory landscape has evolved, offering various avenues for seeking guidance. From robo-advisers to fee-based Financial Planners, there are options tailored to different financial situations and budgets. Understanding these options is crucial in debunking the notion that financial advice is out of reach for the average person.

Costs and Considerations

The cost of financial advice varies based on multiple factors such as the complexity of your financial situation, the Adviser’s fee structure, and the services rendered. While some advisors charge a percentage of assets under management, others opt for fixed fees or hourly rates. Understanding these fee structures helps in assessing the affordability of financial advice. Moreover, some advisors offer tailored packages or initial consultations at lower costs, making advice more accessible for those who may not have substantial assets.

Click here to read our article titled “What is the Cost of Using a Financial Adviser” and find out more about what costs you may incur.

The Value of Financial Advice

Beyond the monetary cost, it’s essential to recognise the value of professional financial advice. Advisers offer expertise, guidance, and a structured approach to managing finances. Their insights can help individuals set realistic goals, navigate complex financial decisions, and stay on track towards achieving financial milestones. The value of peace of mind and a well-thought-out financial plan can significantly outweigh the associated costs. In addition, your investments can greatly outperform other solutions when utilising a professional Adviser, hence, any charges you pay may even be paid for by that growth, making it of technically no cost!

Financial Advice for Everyone

Financial advice is not solely about managing vast sums of money; it’s about making informed decisions at every stage of your financial journey. Whether you’re just starting to save, planning for retirement, or navigating investments, seeking guidance can provide clarity and confidence in your financial decisions. Understanding that financial advice is accessible and beneficial for individuals at various income levels is crucial in unlocking its potential for financial success.

Demystifying Financial Advice

Financial advice is not reserved for the wealthy; it’s a resource available to anyone seeking to better manage their finances. By understanding the diverse options available, the associated costs, and the intrinsic value it brings, you can make informed decisions about seeking professional financial advice regardless of your financial status.

The true answer to how much money you need for financial advice is: there is no limit. However, should it be the case that your funds be of a smaller size (CHF 200k or less), you may experience higher fees or have more difficulty finding the advice that is right for you, whereas with larger funds (CHF 1M or more) your fees may be lower and it can be easier to find advice.

Whatever your situation, to ensure the quality of the advice you receive is high, get in touch with Patterson Mills today. Book your initial, no-cost and no-obligation meeting, you will be pleased that you did. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Please note that all information within this article has been prepared for informational purposes only. This article does not constitute financial, legal or tax advice. Always ensure you speak to a regulated Financial Adviser before making any financial decisions.

Tags financetips, financialadvice, financialadviser, financialplanning

Financial Planning

Financial Planning Can Be Fun!

Post author By Charles Mills
Post date November 27, 2023
No Comments on Financial Planning Can Be Fun!

Financial Planning Can Be Fun!

“Planning is bringing the future into the present so that you can do something about it now” ― Alan Lakein

3 min read

Financial Planning Can Be Fun!

“Planning is bringing the future into the present so that you can do something about it now” ― Alan Lakein

3 min read

Financial planning — two words that might make you think of images of endless spreadsheets, calculations, and budgets. However, what if we told you it can be an exciting, and dare we say, fun journey?

It doesn’t have to be a chore, so read on to discover how your financial planning journey can leave you with an effective strategy as well as some fun along the way.

The Fun Side of Finance

Firstly, start by reframing the narrative! Financial planning is not (!) about deprivation or restraint; it’s about aligning your money with your goals and dreams. Think of it as crafting your own roadmap to financial freedom, giving you the power to design the life you want. It’s about finding creative ways to reach your objectives whilst embracing the journey. Of course, this may well involve planned budgeting, but it’s all in the hopes of a better and brighter future.

Your Financial Vision

Picture this: you’re not just setting budgets; you’re creating a canvas for your dreams. Financial planning lets you outline your future goals, whether it’s owning a beach house, traveling the world, or starting a business. It’s a dynamic process that encourages you to dream big, set achievable milestones, and enjoy every step towards those milestones. Your destination is the life you’ve always dreamed of, so make sure you keep sight of your vision!

Playing Money Management

Another great way to have fun when planning your finances is to try gamifying them. Set challenges, create rewards for meeting your savings goals, or turn budgeting into a friendly competition with yourself. Embrace technology; there are apps and platforms that turn financial tracking into a game, making it more interactive and engaging. By infusing an element of playfulness, you’ll find yourself more motivated and excited about your financial journey.

Workouts for Your Wallet

Think of financial planning as workouts for your wallet. Just like going to the gym, consistent efforts yield impressive results. Track your progress, celebrate achievements, and don’t be afraid to change course if necessary. Financial fitness isn’t just about numbers; it’s about feeling confident and secure in your financial choices. Besides, who said budgeting can’t be as satisfying as smashing a fitness goal?

The Excitement of Achieving Goals

There’s an undeniable joy in achieving financial milestones. Whether it’s paying off a debt, reaching a savings target, or investing in your first stock, each milestone signifies progress and gets you closer to your bigger financial dreams. Celebrate these wins — they’re the building blocks of your financial journey.

Unleash the Joy in Finance

Financial planning is a serious aspect of one’s life and isn’t a one-size-fits-all scheme. However, it’s okay to have fun whilst doing it as it is your own unique blueprint for a brighter financial future. This article is about finding joy in managing your money and steering you towards the life you desire. So, ditch the stereotypes, embrace the journey, and discover the fun side of financial planning!

If you’re not sure where to start, or simply want some expert guidance along the way, get in touch with Patterson Mills today and make sure you’re on track for the future you desire. Book your initial, no-cost and no-obligation meeting, you will be pleased that you did. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags financetips, financialadvice, financialadviser, financialindependence, financialplanning

Financial Planning

Understanding Financial Independence: What Does it Truly Mean?

Post author By Edward Mills
Post date November 24, 2023
No Comments on Understanding Financial Independence: What Does it Truly Mean?

Understanding Financial Independence: What Does it Truly Mean?

“Independence is happiness” ― Susan B. Anthony

5 min read

Understanding Financial Independence: What Does it Truly Mean?

“Independence is happiness” ― Susan B. Anthony

5 min read

Financial independence isn’t merely a distant dream; it’s a tangible goal that embodies the freedom to live life on your terms. But what exactly does achieving financial independence entail?

Defining Financial Independence

Financial independence is not just wealth accumulation; it’s a state where your assets generate sufficient income to cover your expenses without relying on active employment. It signifies a liberation from financial constraints and the attainment of a level where one’s assets generate adequate passive income, enough to sustain their lifestyle without relying on active employment.

This state empowers individuals to make life choices based on personal preferences rather than being dictated by financial obligations. It’s the realisation of freedom, where one gains autonomy over their time, pursuits, and decisions, unburdened by the necessity to work for a living.

Liberation from Financial Obligations

Achieving financial independence represents liberation from the shackles of financial obligations that often limit personal and professional aspirations. It marks a significant transition, providing individuals with the means to cover their essential expenses, unexpected emergencies, and pursue their dreams without the anxiety of financial instability. This liberation empowers individuals to make decisions based on personal aspirations and life goals rather than being dictated by the necessity to meet financial obligations.

It’s a transformational state where the cycle of living paycheck to paycheck is broken, offering a sense of security that allows for a more profound exploration of life’s opportunities.

Creating Your Financial Independence Plan

Crafting a robust plan for financial independence is crucial to realising long-term goals. It begins with setting clear and achievable financial objectives that act as guiding beacons throughout the journey. This involves defining short-term and long-term goals, whether it’s achieving a certain level of savings, eliminating debts, or building an investment portfolio. Creating a timeline for these objectives helps in charting progress and making necessary adjustments along the way.

Moreover, an effective financial plan involves assessing current financial standings, including income sources, expenses, debts, and existing investments. This assessment serves as a foundational step, providing a clear understanding of the starting point and guiding subsequent strategies.

Additionally, developing a financial independence plan requires a prudent approach to managing debts. Prioritising the settlement of high-interest debts and adopting strategies to reduce debt burdens accelerates the path towards financial freedom. Simultaneously, cultivating a habit of disciplined savings is crucial. Allocating a portion of income towards savings, whether through retirement accounts, investment vehicles, or emergency funds, fosters financial resilience.

Furthermore, diversifying investments across various asset classes spreads risks and enhances the potential for growth. Regularly reviewing and adjusting the plan in response to life changes, market shifts, or economic fluctuations ensures its relevance and effectiveness in achieving the desired financial milestones.

If you’re unsure, don’t worry. Patterson Mills are here to guide you every step of the way.

Planning for Retirement and Longevity

Planning for retirement encompasses envisioning a lifestyle that aligns with personal aspirations post-career. It involves estimating future expenses, considering healthcare costs, and assessing potential sources of income during retirement years. Mapping out a realistic budget that accounts for essential needs, leisure activities, healthcare, and potential unforeseen expenses is integral to a well-rounded retirement plan.

Considering the impact of inflation and adjusting the retirement fund accordingly ensures that the accumulated savings retain their purchasing power over time. Also, exploring various retirement vehicles, such as pensions, retirement accounts, or annuities, and understanding their benefits and implications aids in making informed decisions that support a comfortable retirement lifestyle.

Planning for longevity involves acknowledging the potential for extended life spans and the financial implications associated with it. With advancements in healthcare and lifestyle changes, individuals are living longer, emphasising the need for financial plans that accommodate extended lifespans. Strategies such as purchasing long-term care insurance or incorporating health-related expenses into the retirement budget prepare individuals for potential health-related costs in later stages of life. Addressing these considerations proactively within the retirement plan mitigates potential financial strains and ensures a secure and comfortable lifestyle during the post-retirement phase.

Measuring Success Beyond Monetary Value

Beyond financial wealth, success in the realm of financial independence is gauged by the ability to lead a fulfilling and purposeful life. It encompasses factors such as personal growth, meaningful relationships, and contributions to the community. One measure of success lies in the pursuit of passions and interests that goes beyond monetary gains, nurturing a sense of fulfillment and purpose. Whether it’s engaging in artistic endeavours, pursuing hobbies, or contributing time to charitable causes, these endeavours enrich life experiences and offer a sense of fulfillment beyond financial gains.

Success also extends to the cultivation of meaningful relationships and connections with others. Building and nurturing relationships with family, friends, and the broader community contribute significantly to an individual’s wellbeing and happiness. These relationships provide support, companionship, and shared experiences that enrich life beyond material possessions. Contributions to the community, volunteering efforts, or supporting causes that align with personal values create a positive impact and leave a lasting legacy, exemplifying success that transcends monetary metrics.

Achieve Your Financial Independence with Patterson Mills

Now you know that the journey towards financial independence is multifaceted and goes beyond only the accumulation of wealth, it’s time to take action.

Patterson Mills are dedicated to your financial success, aimed at enabling you to life how you want, where you want and whilst doing what you want.

Get in touch with Patterson Mills today and make sure your investments are making an impact. Book your initial, no-cost and no-obligation meeting, you will be pleased that you did. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags financetips, financialadvice, financialadviser, financialindependence, financialplanning

Financial Planning

Financial Tips for Expanding Your Family: Welcoming a Baby

Post author By Edward Mills
Post date November 16, 2023
No Comments on Financial Tips for Expanding Your Family: Welcoming a Baby

Financial Tips for Expanding Your Family: Welcoming a Baby

“You are the bows from which your children as living arrows are sent forth” ― Khalil Gibran

2 min read

Financial Tips for Expanding Your Family: Welcoming a Baby

“You are the bows from which your children as living arrows are sent forth” ― Khalil Gibran

2 min read

Expanding your family to welcome a new baby brings immense joy and excitement. However, amidst the preparations and celebrations, it’s crucial to ensure your financial house is in order. From budgeting for baby expenses to securing their future, here are essential financial tips to navigate this new chapter with confidence and stability.

Creating a Pre-Baby Budget

Before the baby arrives, establish a comprehensive budget that accommodates new expenses. Factor in costs for nappies / diapers, healthcare, childcare, and adjustments in your household budget. Prioritise essential items and identify areas where you can cut back to allocate funds for baby-related expenses.

Understanding Maternity and Paternity Leave Benefits

Familiarise yourself with maternity and paternity leave policies offered by your employer. Understand the duration, pay structure, and any necessary paperwork. Plan your finances accordingly to manage any potential reduction in income during leave periods.

Healthcare Planning

Review your health insurance policy to understand coverage for prenatal care, delivery, and postnatal care. Consider additional coverage or supplemental plans if needed. Anticipate potential medical expenses and factor them into your budget.

Building an Emergency Fund

With a new family member comes unexpected surprises. Start or bolster your emergency fund to cover unforeseen expenses like medical emergencies or unexpected costs related to the baby.

Planning for Long-Term Expenses

Start planning for the baby’s future by considering a savings plan or setting up a dedicated education fund. Explore options to secure their financial future.

Reviewing and Updating Legal Documents

Ensure that legal documents, including wills, trusts, and life insurance policies, are updated to include the new addition to your family. Consider appointing a guardian for your child and set up a trust if needed.

Exploring Parental Benefits and Tax Credits

Research government schemes, parental benefits, and tax credits available for new parents. Explore benefits like child tax credits, childcare vouchers, or government-funded schemes for children’s savings.

Managing Baby Gear and Expenses Wisely

Avoid overspending on baby gear by considering borrowing or buying second-hand items. Prioritise essential items and avoid falling into the trap of purchasing unnecessary gadgets or accessories.

Planning Childcare Arrangements

Assess potential childcare options and their associated costs. Whether it’s daycare, nanny services, or family help, factor these costs into your budget and make decisions aligned with your financial situation.

Establishing Open Financial Communication

Maintain open and honest communication with your partner about financial goals, budgeting, and any adjustments needed after the baby arrives. Regularly review and adapt your financial plan as your family grows.

Charting Financial Stability

Welcoming a new baby is a beautiful milestone, and proactive financial planning can significantly alleviate stress and ensure a smoother transition. By creating a pre-baby budget, understanding benefits, planning for long-term expenses, and fostering open communication, you’ll lay a solid financial foundation for your growing family’s future.

Not sure where to start? Get in touch with Patterson Mills today and book your initial, no-cost and no-obligation meeting, you and your child will be pleased that you did. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags financetips, financialadvice, financialadviser, financialplanning, newborn, welcomingababy

Financial Planning

Navigating Unexpected Expenses

Post author By Charles Mills
Post date November 10, 2023
No Comments on Navigating Unexpected Expenses

Navigating Unexpected Expenses

“If you take control over those things you can, you are better able to negotiate the unexpected” ― Judy Sheindlin

3 min read

Navigating Unexpected Expenses

“If you take control over those things you can, you are better able to negotiate the unexpected” ― Judy Sheindlin

3 min read

When life throws unexpected financial challenges your way, having a solid plan in place is crucial to maintaining stability and peace of mind. Whilst you cannot plan for the unexpected, you can prepare by taking control over what you can in order to better navigate any sudden expenses. Read on below to find out how you can keep your financial wellbeing afloat even in uncertain times.

Assess the Situation

In the face of a sudden expenditure, the first step is to (as calmly as possible) assess the situation. Determine the nature and urgency of the expense. Is it a critical home repair, a medical emergency, or an unforeseen travel cost? Categorising the expenditure helps in understanding its impact on your overall budget. Once assessed, prioritise the expense based on its urgency and significance. For example, a leaking roof might demand immediate attention, whilst a planned but unexpected dental procedure could potentially be managed with a bit more flexibility.

Following the assessment, it is likely time to tap into your rainy day savings fund. If you’ve read some of our other articles, you’ll know what this is. If not, this is an emergency fund, diligently set aside for unforeseen expenses, acting as a financial cushion during any unexpected and challenging times. Ideally, your rainy day fund should cover three to six months’ worth of living expenses. If the expense exceeds this, consider other available resources such as liquidating non-essential assets or exploring short-term financing options if necessary.

Remember, the key is to maintain financial equilibrium without compromising long-term financial goals.

Adjusting Your Budget

With the sudden expenditure identified and the initial financial response in motion, the next step is to adjust your budget. Review your current monthly budget and identify areas where temporary cutbacks can be made. This might involve trimming non-essential expenses such as dining out, entertainment subscriptions, or discretionary shopping. The goal is to redirect funds towards covering the unexpected cost without accumulating additional debt.

Simultaneously, communicate with relevant parties, such as utility providers or lenders, about the situation. Many institutions offer hardship programs or flexible payment plans that can temporarily alleviate the strain on your budget. Additionally, if the sudden expenditure is health-related, explore the possibility of negotiating medical bills or setting up a reasonable payment plan with healthcare providers. Flexibility and proactive communication play a pivotal role in managing the financial impact of unexpected expenses.

Exploring Additional Income Streams

In the aftermath of a sudden financial hit, consider exploring temporary or additional income streams. This could involve freelance work, part-time employment, or leveraging skills for one-off or recurring alternatives. There are many platforms offering opportunities or freelance work which can be valuable resources to generate supplementary income. Whilst not a long-term solution, these additional streams can provide a financial boost during challenging periods.

Concurrently, evaluate your existing investments and assets. Depending on the urgency of the expenditure, liquidating non-essential assets might be a viable option. However, it’s crucial to strike a balance between addressing the immediate need and preserving long-term financial stability. Consult with a Patterson Mills Financial Adviser to make informed decisions that align with your overall financial strategy.

Reviewing and Adjusting Financial Goals

Sudden expenditures often necessitate a review of your financial goals. Whilst it’s essential to stay committed to long-term objectives, reassessing and potentially adjusting timelines can provide more immediate financial relief. Temporarily redirecting funds from non-urgent goals to cover the unexpected expense ensures that you can weather the storm without derailing your entire financial plan.

Use this period of financial challenge as an opportunity to strengthen your budgeting and saving habits. Consider revising your monthly savings goals to replenish your rainy day fund more quickly. This adaptive approach allows you to recover from the sudden expenditure whilst reinforcing your financial resilience for the future.

Seeking Professional Financial Guidance

When confronted with a significant and unexpected financial expense, seeking professional financial advice becomes invaluable. A certified Patterson Mills Financial Adviser can provide tailored guidance based on your specific circumstances. They can help you evaluate different strategies, prioritise financial actions, and make informed decisions that align with your overall financial plan.

Patterson Mills Financial Advisers can also assist in identifying areas where adjustments can be made to accommodate the sudden expenditure without causing substantial disruption. Whether it involves restructuring investments, revising debt repayment plans, or exploring alternative financing options, our expertise contributes to a well-rounded approach in addressing unexpected financial challenges.

Proactive financial planning and a resilient mindset are key components in effectively managing sudden expenditures.

Continuous Monitoring and Adjustments

After addressing a sudden expenditure, it’s essential to continuously monitor your financial situation and make adjustments as needed. Regularly reassess your budget, savings goals, and overall financial plan to accommodate any changes or lessons learned from the unexpected event. This ongoing process of monitoring and adjustment enhances your financial resilience, preparing you for future uncertainties.

Navigating the Waves of Financial Uncertainty

In the unpredictable journey of life, unforeseen financial challenges can arise, testing our preparedness and resilience. As we explored strategies to address sudden expenditures, it becomes evident that a proactive and strategic approach is paramount. The creation of a robust rainy day fund, the exploration of financing options, prioritising essential expenses, and negotiating with creditors collectively form a toolkit for weathering unexpected storms.

Patterson Mills are here to help you embrace a mindset of continuous monitoring and adjustment ensures your finances remain agile in the face of changing financial landscapes. By diligently applying these principles, we can help you not only address immediate financial concerns but also fortify your financial foundation for the future. So, make sure to get in touch with Patterson Mills today and book your initial, no-cost and no-obligation meeting, you’ll be pleased that you did. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags expenditure, financetips, financialadvice, financialadviser, financialplanning, unexpectedexpenses

Financial Planning

Turning 40? 10 Essential Tips for Your Financial Success

Post author By Edward Mills
Post date November 9, 2023
No Comments on Turning 40? 10 Essential Tips for Your Financial Success

Turning 40? 10 Essential Tips for Your Financial Success

“Aging is not lost youth but a new stage of opportunity and strength” ― Betty Friedan

2 min read

Turning 40? 10 Essential Tips for Your Financial Success

“Aging is not lost youth but a new stage of opportunity and strength” ― Betty Friedan

2 min read

As you approach the milestone of turning 40, it’s a crucial time to reflect on your financial journey and strategically plan for the years ahead. Here are some key considerations and milestones to focus on as you navigate the financial landscape in your 40s:

1. (Re-)Assessing Your Financial Goals

At 40, it’s time to revisit and refine your financial goals. Whether it’s homeownership, retirement, or funding your children’s education, reassess and adjust your goals to align with your current priorities.

2. Retirement Planning Intensifies

As you enter your 40s, retirement planning becomes more critical. Evaluate your retirement savings, consider increasing contributions to your retirement accounts, and explore investment strategies to maximise your funds.

3. Emergency Fund Reinforcement

Strengthen your financial safety net by ensuring you have a robust emergency fund. Aim for three to six months’ worth of living expenses in a readily accessible account to weather unexpected financial storms.

4. Managing Debt

Tackle any lingering debt aggressively. Prioritise high-interest debts and create a plan to eliminate them. Being debt-free provides more financial flexibility and paves the way for future investments.

5. Investment Diversification

Diversify your investment portfolio to mitigate risk. Explore different asset classes and consider consulting a financial advisor to ensure your investments align with your risk tolerance and financial goals.

6. Insurance Checkup

Review your insurance coverage, including life, health, and disability insurance. Ensure that your coverage aligns with your current circumstances and provides adequate protection for you and your loved ones. Click here to read our guide to insurance.

7. Estate Planning

Begin or update your estate planning. This includes drafting or revising your will, establishing a living will, and designating beneficiaries for your accounts. It’s a responsible step to safeguard your family’s financial future.

8. Career Assessment

Evaluate your career trajectory and assess whether your current path aligns with your long-term goals. Explore opportunities for professional development or consider a career change if it aligns with your aspirations.

9. Educational Fee Savings for Children

If you have children, review and adjust your strategy for saving for their education. Explore education savings accounts to secure their academic future.

10. Health and Long-Term Care Planning

Prioritise your health and consider long-term care planning. Understanding long-term care insurance options can contribute to a more secure future.

Continue On Your Path To Success

Turning 40 marks a pivotal moment in your financial journey. By addressing these 10 steps, you set the stage for a more secure and prosperous future. Remember, it’s never too late to make informed financial decisions that align with your goals and values.

For the best possible chance of success, get in touch with Patterson Mills today and book your initial, no-cost and no-obligation meeting, you’ll be pleased that you did. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags agemilestones, financetips, financialadvice, financialadviser, financialplanning, turning40

Financial Planning

What To Do With 1M CHF?

What To Do With 1M CHF?

“Making the first million is hard; making the next 100 million is easy” ― Theo Paphitis

3 min read

What To Do With 1M CHF?

“Making the first million is hard; making the next 100 million is easy” ― Theo Paphitis

3 min read

Firstly, congratulations! You’ve achieved a significant sum of CHF 1’000’000 (1M).

Now, with great wealth comes great responsibility. How do you make this work for you in the best possible way? You need to know the essential strategies and options to consider in order to grow and protect your wealth. Fortunately, that’s exactly what Patterson Mills is here for.

WHY Should you Consider Investing?

Rather than tell you that you ‘should’ be investing, it is important to know why you may wish to consider investing. Naturally, investing is an important part of enhancing your financial wellbeing, so read on to find out why.

Inflation

One significant factor is inflation. Over the long term, the purchasing power of your money can erode due to inflation. For example, if you were to stash away your 1 million CHF under your mattress without investing, its real value would diminish over time. You may still have CHF 1M, but it could then only buy you what CHF 800K could buy you the year before. Essentially, you have CHF 1M in cash, but you have lost CHF 200K in real terms. This is an extreme example, using 20% inflation, though the principle is important.

Historically, inflation has averaged around 1 – 2% annually. This means that the same goods or services that cost CHF 100 today could cost CHF 101 – 102 a year from now, effectively reducing your buying power. By investing, you aim to outpace inflation and protect your wealth. At the CHF 1M level, inflation at 2% could cost you CHF 20,000 (20K) per year!

The chart below is provided by Quilter Cheviot, with data sourced from LSEG Datastream using GBP currency. It displays the annualised returns from 1989 to 2023 of GBP 1.00 (£1). You will notice that equities have surpassed cash by more than double. Your £1 in cash will have grown to £1.77, whilst your £1 in equities will have grown to £5.18.

Capital Growth

Another compelling reason to invest is the potential for capital growth. Whilst cash or low-yield savings accounts may offer stability, they tend to provide minimal returns. On the other hand, well-planned investment strategies can deliver higher returns over time. For instance, if you had invested your 1 million CHF in a diversified portfolio of stocks and bonds over the past few decades with Patterson Mills, you would have seen your wealth grow, potentially even doubling or tripling your initial investment, whilst retaining cash will have provided significantly less returns (as per the chart above!).

Achieve Financial Goals

Additionally, investing can be a means to achieve your financial goals. Whether you aspire to fund your children’s education, purchase a dream home, or enjoy a comfortable retirement, strategic investments can help you get there. The power of compounding, where your investment returns generate additional returns, can be a game-changer in building wealth. Patterson Mills specialise in creating tailored investment strategies designed to meet your objectives whilst factoring in your risk tolerance and financial timeline. Our experienced Financial Advisers will work with you to establish clear goals and a roadmap to help you realise your financial dreams.

Invest Wisely

Investing your CHF 1M wisely means understanding your risk tolerance and financial goals. Depending on your individual preferences, you might opt for a combination of investments. For instance, you could allocate a portion of your wealth to equities, which offer the potential for long-term growth, whilst also considering bonds for stability and income generation. Real estate investments may also provide diversification and passive income, though you should consult with a Patterson Mills Financial Adviser beforehand. You may also want to explore alternative investments such as private equity or hedge funds to further diversify your portfolio.

One other important consideration is your investment horizon. If you have a longer time frame (i.e you do not need to access the funds until 10-years into the future), you can typically afford to take on more risk, whereas a shorter horizon may lead to a more conservative approach. Whatever your time horizon, ensure you have a tailored investment strategy in place that aligns with your specific objectives, whether it’s wealth preservation, income generation, or capital growth.

Diversification is Key

Diversifying your portfolio across various asset classes and geographic regions is vital. Within equities, consider investing in both domestic and international markets to spread your risk. In the bond market, diversify by selecting bonds with different maturities and credit qualities, corporate bonds and governmet bonds. Real estate investments can also be diversified across property types, such as residential, commercial, or industrial. Furthermore, alternative investments like private equity can provide non-correlation with traditional markets.

Craft a Bespoke Portfolio

There is no one-size-fits-all solution for a portfolio of any size. Creating a bespoke portfolio for your 1 million CHF is an endeavour that will often require professional guidance. Talking to a Patterson Mills Financial Adviser ensures you will benefit from a comprehensive assessment of your financial situation, objectives, and risk tolerance. This evaluation enables us to design a portfolio that is uniquely tailored to your needs. We will also consider tax-efficient strategies to help you minimise your tax liabilities and retain more of your wealth. Taking a proactive approach to manage your investments, with an Adviser with your best interests at the forefront, is essential.

Transform Your Savings into Success

Managing a sum of CHF 1’000’000 offers both opportunities and responsibilities. By carefully considering the available options and seeking expert guidance, you can optimise your financial future. Whether you decide to invest in a diversified portfolio, explore high-yield savings accounts, or utilise bespoke financial advice from Patterson Mills, the key is to ensure your wealth works for you.

Patterson Mills are committed to helping you make the most of your financial resources, ensuring that your CHF 1M paves the way for a secure and prosperous future. Don’t wait – contact us today to begin your journey towards financial success.

Get in touch with us today and book your initial, no-cost and no-obligation meeting, you’ll be pleased that you did. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags financetips, financialadvice, financialadviser, financialplanning

Financial Planning

Family Finances: Raising Financially Savvy Kids

Post author By Edward Mills
Post date October 30, 2023
No Comments on Family Finances: Raising Financially Savvy Kids

Family Finances: Financially Savvy Kids — happy family mother father and kids at home on the couch

Family Finances: Raising Financially Savvy Kids

“You are the bows from which your children as living arrows are sent forth” ― Khalil Gibran

3 min read

Family Finances: Raising Financially Savvy Kids

“You are the bows from which your children as living arrows are sent forth” ― Khalil Gibran

3 min read

In an age when technology offers the convenience of digital payments and contactless transactions, teaching children about financial responsibility has never been more crucial. Whilst kids might not grasp the complexities of the stock market or macroeconomics, they can certainly learn the fundamentals of money management, saving, and budgeting. It’s all about securing long-term financial freedom, made even more accessible by having the right knowledge.

Lead by Example

One of the most effective ways to teach children about money is by modeling good financial behaviour. Kids tend to learn by observing their parents or guardians. If they witness responsible spending, saving, and investing practices at home, they are more likely to adopt these habits themselves. Conversely, if they observe careless or impulsive financial decisions, they may mimic those actions. So, set a positive financial example by making well-informed financial choices in front of your children.

Age-Appropriate Financial Lessons

Teaching children about money should be age-appropriate. Younger children can learn about basic concepts like differentiating between coins and notes and the importance of saving money in a piggy bank. As they grow older, you can gradually introduce more advanced topics, such as budgeting, investing, and the concept of interest. If you start your children’s financial education by explaining Discretionary Trusts, it may be too complex and turn them away from ever visiting the subject.

Use Your Family Finances for Real-Life Situations

Learning about money becomes more meaningful when children can apply their knowledge in real-life situations. Allow them to manage a small allowance, whether it’s for completing household chores or for good behavior. This provides kids with a practical context for money management. Encourage them to save a portion of their allowance while discussing potential expenditures and financial goals.

Open a Kids' Savings Account

A kids’ savings account is an excellent way to teach children about banking and the concept of earning interest on savings. Many banks offer specialised savings accounts for children that come with features such as low minimum balances and educational materials. Opening an account in your child’s name and making regular trips to the bank together (or nowadays to the bank’s website or online portal!) can help demystify the financial world.

Teach Wise Spending Choices

Discuss the concept of needs versus wants. Help your children differentiate between items they truly need and items that are optional or for pleasure. When they receive gifts or allowance, encourage them to think critically about how to allocate their money, balancing saving for future goals with the enjoyment of spending.

Allow Them to Make Mistakes

Financial lessons often come with a price, but it’s better for children to make small financial errors while the stakes are low. If they spend all their allowance and later regret it, that experience can be a valuable lesson in managing money wisely.

Discuss the Power of Saving

Teach your children about the benefits of saving money. Explain how their savings can grow over time, and introduce the concept of compound interest. Show them that patience and discipline can lead to significant financial rewards.

Make Learning Fun

Learning about money doesn’t have to be dull or intimidating. Engage your kids in enjoyable financial activities. Board games like Monopoly or The Game of Life offer valuable lessons in budgeting and decision-making. Additionally, many online resources and mobile apps are designed to educate children about money management in a fun and interactive way.

A Brighter Future For Your Children

By instilling financial knowledge and responsibility from an early age, you set your children on the path to financial independence and success. Teaching them to manage money wisely, save, and make informed financial decisions can lead to a lifetime of good financial habits. Remember that raising financially savvy kids is an ongoing process, and your guidance plays a pivotal role in their financial education. By following these steps and incorporating them into your daily life, you can help your children build a strong financial foundation for their future.

Patterson Mills are here to make sure your financial future, and that of your children’s, children’s children and beyond, are as successful as possible. Get in touch with us today and book your initial, no-cost and no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags childrenfinances, familyfinances, financetips, financialadvice, financialadviser, financialplanning

Financial Planning

Credit Score 101: Building and Maintaining Good Credit

Post author By Charles Mills
Post date October 27, 2023
No Comments on Credit Score 101: Building and Maintaining Good Credit

Credit Score 101: Building and Maintaining Good Credit

“Whether you’re earning $7 an hour or $700,000 a year, it’s very important to protect your credit rating” ― Frank Abagnale

2 min read

Credit Score 101: Building and Maintaining Good Credit

“Whether you’re earning $7 an hour or $700,000 a year, it’s very important to protect your credit rating” ― Frank Abagnale

2 min read

A good credit score is your passport to accessing essential financial services. Whether you’re applying for a credit card, a mortgage, or a personal loan, your credit score plays a pivotal role in the approval process. Understanding the fundamentals of credit scores and how to build and maintain good credit is vital for your financial wellbeing.

What Is a Credit Score?

Your credit score is a numerical representation of your ‘creditworthiness’. It provides lenders with a quick and easy way to evaluate your credit risk. Credit scores typically range from 300 to 999, with higher scores indicating lower credit risk (you want a higher score!). Your score is calculated based on various factors, including your payment history, credit utilisation, length of credit history, types of credit accounts, and recent credit inquiries.

How Is a Credit Score Used?

Lenders use your credit score to determine the risk associated with lending you money. A higher credit score often translates to lower risk in the eyes of lenders, making it easier to qualify for loans with favorable terms, such as lower interest rates. In contrast, a lower credit score may lead to higher interest rates, less favorable loan terms, or even loan denials.

Building a strong credit foundation is not only a financial goal but a valuable skill in navigating the world of personal finance.

The Factors That Influence Your Credit Score

One of the key elements of your credit score is your payment history. Lenders look at whether you make payments on time, as well as any history of late payments or defaults. Other significant factors include your credit utilisation (the amount of credit you use compared to your total credit limit), the length of your credit history, the types of credit accounts you have (e.g. credit cards, loans), and recent credit inquiries. By understanding how these factors influence your credit score, you can take steps to maintain and improve it.

Credit Reports: The Foundation of Credit Scores

Your credit score is based on the information contained in your credit reports, which are maintained by credit bureaus or credit reporting agencies. These reports include details about your credit accounts, payment history, public records (such as bankruptcies or tax liens), and inquiries made into your credit history. Regularly reviewing your credit reports is essential to ensuring their accuracy and addressing any discrepancies.

Building Good Credit: Tips and Strategies

Building and maintaining good credit requires a strategic approach. This includes:

Always making your payments on time
Keeping your credit card balances low
Having a mix of different types of credit accounts
Being cautious about opening new credit accounts

Additionally, you should create a budget, live within your means, and avoid excessive debt, as these practices can have a positive impact on your credit score.

Protecting Your Credit: Identity Theft and Fraud Prevention

Identity theft and fraud can significantly damage your credit. Regularly monitoring your credit reports for any unusual or unauthorised activity is a crucial part of this process.

Your Path to Strong Credit

A good credit score opens doors to financial opportunities, from better loan terms to lower insurance premiums. With the insights gained from this article, you can work on building and maintaining strong credit. By managing your finances responsibly, monitoring your credit reports, and being vigilant against identity theft and fraud, you’ll be well on your way to financial success.

Not sure where to start? Get in touch with Patterson Mills today and book your initial, no-cost and no-obligation meeting. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags banking, credit, creditscore, financetips, financialadvice, financialadviser, financialplanning

Financial Planning

When is the Right Time to Consult a Financial Adviser?

Post author By Charles Mills
Post date October 19, 2023
No Comments on When is the Right Time to Consult a Financial Adviser?

When To Use A Financial Adviser — Good deal! Cheerful young man bonding to his wife while shaking hand to man sitting in front of him at the desk

When is the Right Time to Consult a Financial Adviser?

“I am lucky to have advisers whom I trust” ― Monica Seles

3 min read

When is the Right Time to Consult a Financial Adviser?

“I am lucky to have advisers whom I trust” ― Monica Seles

3 min read

Financial Advisers are like the Sherpas of the financial world, guiding you through the treacherous peaks and valleys of personal finance. However, how do you know when the right time is to consult a Financial Adviser to help you navigate the financial landscape? It’s an essential question, and the answer (you may not be surprised to read) isn’t a one-size-fits-all solution. Today, we are giving you this guide to getting the right help, and more importantly, at the right time for you. After all, the expertise of an Adviser can help ensure you reach your financial summit.

How Old Should I Be?

The age at which you should consider working with a Financial Adviser depends on your life situation. Whether you’re fresh out of education, approaching retirement, or somewhere in between, your financial needs evolve. In reality, there is no age limit applicable to talking with a Financial Adviser. If you have the need for a Financial Adviser, you are the right age to seek one out! We’ll discuss the stages of life when seeking financial guidance is most advantageous and how it can set you on the path to achieving your goals.

In What Stage of Life Should I Be?

The right time to consult a Financial Adviser is intrinsically tied to the stages of your life. Whether you’re entering the workforce, getting married, buying your first home, or planning for retirement, each stage comes with unique financial challenges and opportunities. Generally, it is good practice to consult a Financial Adviser right at the start of your working life to ensure you have a strong start into securing a successful financial future. Keep in mind that despite Financial Advisers charging for their services, they may be happy to have an initial chat that might be highly beneficial as you’re starting out. You can read more about understanding Financial Adviser’s fees in our previous article by clicking here.

How Much Money Do I Need?

One common misconception is that Financial Advisers are only for the wealthy. Whilst they can indeed provide valuable services for high-net-worth individuals, they can also be beneficial for those with more modest financial means. In reality, there is no minimum amount of money that you will need to see a Financial Adviser. The key thing to keep in mind is that, for investing lower amounts, the fees you pay may be less cost-efficient than for those with higher amounts.

Some Advisers could give you the option to pay hourly, which means that you don’t need any money to invest at all and simply just the amount to cover their hourly rate.

DIY vs. Adviser: Can I Get By Without Using an Adviser?

In an era of readily available financial information, some individuals may be tempted to go the do-it-yourself route. It is possible to manage your money independently, though a Financial Adviser can significantly enhance your financial wellbeing.

Think of it this way: You can walk a running race and get to the end healthy and still standing with a feeling of accomplishment, but you’ll likely underperform and not win any medals.

Your Financial Sherpa Awaits

Even if you’re not sure whether it’s the right time to hire a Financial Adviser, seeking guidance early can be a wise move. Patterson Mills are here to provide you with practical steps to take if you’re uncertain, so you can begin your financial journey on the right foot.

Get in touch with Patterson Mills today and book your initial, no-cost and no-obligation meeting and we will guide you every step of the way. Send us an e-mail to info@pattersonmills.ch or call us direct at +41 21 801 36 84 and we shall be pleased to assist you.

Tags financetips, financialadvice, financialadviser, financialplanning