Smart Wealth: Ask before you assume

“Don't just learn, experience. Don't just read, absorb. Don't just change, transform.”

--- Roy T. Bennett

Wealth is not just built by making smart investments—it's built by actively questioning and refining your financial strategies. At Bespoke Financial Services, we believe that financial empowerment comes from moving beyond passive acceptance to intentional, transformative action. The real power of financial planning lies not just in understanding what you’re doing with your wealth, but in understanding why you’re doing it.

If you’re a high-net-worth individual with a direct share portfolio held through one of the prestigious banks, here’s a question worth asking:

Why isn’t my portfolio in an endowment wrapper?

This isn’t just a technicality. It’s a fundamental aspect of wealth management that could significantly impact your financial outcomes. The best financial strategies aren’t just learned; they’re experienced, absorbed, and transformed into something truly purposeful. It’s about ensuring your wealth serves you effectively, both now and for generations to come.

Currently (at the time of writing), holding your direct share portfolio within an endowment wrapper offers multiple benefits, particularly if you’re looking for tax efficiency and long-term protection.

Tax Efficiency

Investments held within an endowment wrapper are taxed at a flat rate of 30% on income and 12% on capital gains—potentially far lower than the rates applied to personal investments or those held within a trust. Over time, this difference can translate into substantial savings, enhancing your overall investment performance.

Executor Fee Savings

Portfolios held in personal capacity or trusts can attract executor fees of 3.5% plus VAT upon your passing. Structuring your portfolio through an endowment wrapper can effectively sidestep this fee, ensuring more of your wealth is preserved for your intended beneficiaries.

Insolvency Protection

An endowment wrapper may offer insolvency protection after a specified period, adding an additional layer of security to your wealth. This is particularly valuable if your financial journey involves entrepreneurial risk or other ventures that could place personal assets at risk.

If your portfolio isn’t already in an endowment wrapper, there might have a valid reason. It’s essential to have that conversation and understand the rationale. However, if the answer is vague or based on oversight rather than strategy, it may signal that a change is needed.

Asking the right questions isn’t about being confrontational. It’s about being intentional. It’s about ensuring your wealth is structured to work effectively for you, not just in terms of returns but in terms of tax efficiency, protection, and alignment with your broader life goals.

What this all comes down to is clarity—understanding not just what you’re doing with your wealth, but why. 

“Understanding why I don’t do something is as crucial as knowing why I do. Both sides of the decision inform my path and purpose.”

At Bespoke Financial Services, we believe in guiding you through those conversations, helping you uncover the gaps where your financial structure may not be serving you as effectively as it could. Whether it’s a matter of tax efficiency, estate planning, or simply ensuring that your wealth continues to support what matters most, we’re here to help you bring clarity and intention to every decision.

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Would you like us to help you revisit your financial structures and ensure they align with your long-term vision? Let’s have that conversation. After all, being informed is the first step toward being empowered.