Q1. What is Financial Advice?
Financial advice refers to professional guidance and recommendations provided by financial experts to individuals or businesses to help them manage their money, investments, and overall financial situation effectively.
Q2. What are the benefits of using a Financial Advisor?
Using a financial advisor can offer numerous benefits, as they provide valuable expertise and personalized guidance tailored to an individual's unique financial situation. Here are some of the key advantages of using a financial advisor:
- Personalized Financial Planning: A financial advisor can assess your current financial status, understand your goals, and develop a comprehensive financial plan customized to meet your specific needs and objectives.
- Expertise and Knowledge: Financial advisors are well-versed in various aspects of personal finance, including investments, retirement planning, tax strategies, estate planning, insurance, and more. Their knowledge can help you make informed decisions.
- Goal Setting and Strategy: Advisors help you set realistic and achievable financial goals and create a roadmap to reach them. They provide ongoing support to keep you on track and adjust your plan as needed.
- Risk Management: Advisors assess your risk tolerance and suggest appropriate investment options that align with your comfort level, ensuring that your investment portfolio is well-balanced and diversified.
- Access to Investment Opportunities: Independent Financial advisors often have access to a broader range of investment opportunities, including those not readily available to individual investors or to restricted advisors.
- Tax Efficiency: Advisors can help you implement tax-efficient investment strategies and identify opportunities to minimize tax liabilities, potentially saving you money in the long run.
- Behavioural Guidance: Advisors serve as a buffer against emotional decision-making during market fluctuations. They help you stay disciplined, focused on your long-term goals, and avoid making impulsive investment decisions.
- Retirement Planning: Advisors can help you plan for a financially secure retirement by estimating future expenses, determining how much you need to save, and suggesting appropriate retirement accounts and investment options.
- Estate Planning: Advisors assist in creating an estate plan, including wills, trusts, and beneficiary designations, ensuring that your assets are distributed according to your wishes after you pass away.
- Financial Education: Advisors take the time to educate clients about financial matters, empowering them to make more informed decisions and take control of their financial future.
- Regular Monitoring and Reviews: Advisors regularly monitor your financial progress and provide portfolio reviews to ensure your investments remain aligned with your goals and risk tolerance.
- Peace of Mind: Having a financial advisor can bring peace of mind, knowing that a qualified professional is overseeing your financial affairs and working towards your financial well-being.
It's essential to choose a financial advisor who is reputable, qualified, and aligns with your values and goals. Regular communication and a strong client-advisor relationship are key to maximizing the benefits of using a financial advisor.
Q3. What level of qualifications do you hold?
Anwar holds a Diploma in Financial Advice (DipFA) with the London Institute of Banking & Finance which allows him to provide regulated Financial Advice. He also holds a Certificate in Mortgage Advice & Protection (CeMAP) and previously operated as a Mortgage Advisor. Finally, he holds the Islamic Finance Qualification from the Chartered Institute for Securities & Investments which helps to reinforce his special interest in Shariah Compliant Investments.
He is currently working towards his Chartered Financial Advisor status with the London Institute of Banking & Finance.
Q4. What types of clients do you typically work with?
Blackstone Wealth works with a range of clients and therefore is not restricted to a specific demographic. In order to fully benefit from our services, we would however suggest individuals from a professional or high net worth background.
Q5. How often do you review and update my financial plan?
We offer an initial advice service, which includes review of your existing provisions, your goals, objectives and appetite for risk. This is then usually followed by a presentation meeting, where we formally present our recommendation.
Should you decide to proceed with the recommendation, you will have the opportunity to opt into the ongoing advice service, where we continue to review your portfolio and wider financial circumstances as a minimum once a year, although more frequently if required.
Q6. What is inflation and how does inflation impact my money?
Inflation is the rate at which the general level of prices for goods and services in an economy rises over a period of time, resulting in a decrease in the purchasing power of money. In other words, inflation causes the value of money to decline, leading to a reduction in the amount of goods and services that can be purchased with the same amount of money
You should usually keep your emergency funds in cash, along with any planned expenditure.
Dependant on your attitude to risk, its worth considering investing funds which are not required within the next 5 years. As history has shown, over the long term, investments tend to outpace returns from cash based savings accounts and inflation.
Q7. What are the tax implications of investments?
Tax differs from one wrapper to another (ISA / Pension/ General Investment Account). ISA’s are income tax and capital gains tax free, but liable to inheritance tax. Most of your pension is usually liable to income tax, although could be free of inheritance tax dependant on how its paid. General Investment Accounts are liable to income tax and capital gains tax, although allowances may be available.
Given the differences in tax regimes, it’s important to consider investment growth hand in hand with taxation, as it ultimately impacts how much you and your family may receive.
Q8. What are Shariah compliant investments?
Shariah compliant investments adhere to Islamic principles, which prohibit certain activities such as earning interest (riba), investing in businesses that deal with alcohol, pork, gambling, or other haram (forbidden) activities.
They go through quantitative and qualitative screening to ensure Shariah compliance.
Quantitative screening involves applying specific financial ratios and thresholds to assess the financial health of a company and its compliance with Islamic principles.
Qualitative screening involves a more subjective analysis of a company's overall business activities, management practices, and ethical considerations.
Q9. What about my existing pensions/investments, are they Shariah compliant?
Unless investments or pensions are specifically categorised as Shariah compliant, they will most likely include non shariah compliant assets, such as debt-based instruments and equities in non-shariah (haram) compliant firms.
This also applies to most default workplace pension schemes.
Q10. Do you have to be Muslim to invest in Shariah compliant funds?
Shariah-compliant funds are open to all investors, regardless of their religious beliefs, who wish to invest in accordance with Islamic principles. Its also worth noting, Shariah compliant investments have a lot of similarities with ethical investments.
Q11. How do Shariah-compliant funds ensure ongoing compliance?
Shariah-compliant funds have regular reviews conducted by Shariah scholars or advisory boards to ensure that the investments remain in compliance with Islamic principles.
