Legal Business

Achieving financial independence is so much easier if you create a plan

Towry’s Chris Cole explains how they help legal partners achieve lifetime financial goals

Over the many years we have been working with law firms, we have found that partners typically have common aspirations from a financial point of view. Chief among these is usually the desire to become ‘financially independent’ – in other words, working out when enough is really enough to achieve the future they want for themselves and their families. However, legal partners are incredibly busy people and so they invariably do not have the time to personally put together a plan to help them achieve this goal.

Despite high earnings and being financially astute, partners often fail to put enough money aside to achieve their objectives. These may include funding private education fees, buying a second property, early retirement, or even working on a consultancy or voluntary basis once they are financially secure.

Even where financial arrangements have been put in place, these have often been taken out on an ad hoc basis and so there is no real strategy or plan behind them. Commonly, partners hold a variety of different financial products that are not aligned with their attitude to risk, or their retirement timings and aspirations.

The Towry difference

When clients ask us to help them plan for their future and to simplify their financial affairs, the first step of the process is to create a ‘joined up’ view of their financial position. We aim to build an understanding of a client’s current financial situation, taking into account their available assets, tax status, financial liabilities and pension arrangements. Crucially, we find out what is important to them and what they are trying to achieve.

Typically, the next stage is to build a lifetime cashflow analysis. This may sound rather complicated, but it is a really important starting point for analysing their finances. It shows an individual how much money they have now and how much they might need in the future to meet their long-term goals. It is a great way of understanding whether they need to save more now, earn more money or revisit what it is they want to achieve in the longer term in order to achieve their goals. This clarity helps clients to make informed decisions about their financial future and allows us to develop a lifetime financial plan that will get them to where they want to be.

This plan creates a foundation for all future decisions and provides a framework for advice on retirement planning, estate planning or meeting other financial objectives. Of course, we understand that a partner’s circumstances will evolve over time and so, ideally, this plan will be reviewed annually and refined if necessary. A regular review also allows us to discuss any tax changes or new legislation that may have an impact. One example of this is the radical new pension rules that have recently been announced by the government.

A deep understanding of the legal profession

In our experience, this approach to financial planning is very important to legal professionals. It brings peace of mind for them and their families. This means we have a strong understanding of their particular needs and requirements and a reputation for building long-term relationships built on trust. We have been advising lawyers in small practices through to Silver and Magic Circle firms for many years, and have a specialist team of wealth advisers dedicated to serving the individual needs of legal professionals. This team can also draw upon the in-depth technical expertise that exists within our organisation to ensure we deliver the best possible advice for every client.

Through experience, we are also fully aware that many partners have compliance responsibilities and need to manage conflicts of interest. We are therefore able to offer services that meet the independency requirements for most practices.

Locally-based teams to suit the needs of our clients

With a network of 21 offices located around the UK, we are conveniently situated for the vast majority of law firms. This local presence combined with our wide experience of the sector makes Towry ideally suited to helping law firm partners achieve their long-term financial goals.

You can find out more about our approach to working with legal partners in our short video at www.towry.com/partners

For more information, please contact:

Chris Cole, executive partner, Towry

Phone: 020 7936 7133

E-mail: chris.cole@towry.com

www.towry.com/partners