In Episode 5 of our ‘Practical Financial Planning’ season, Simon explains how an understanding of platforms (technology that enables us to interact with various financial elements) can help us to manage our money.
Some key points of interest covered in this episode include the following:
- Simon uses the analogy of buckets (places we put money) on a shelf (a way to organise our money) to explain how we can accumulate various products (bank accounts, pensions, ISAs, savings accounts etc) from different providers (banks; building societies; brands such as Visa, PayPal, Mastercard; insurance companies etc), which then require to be organised if we are going to manage them efficiently. [01:13]
- Simon explains how platforms (‘integrated’ platforms in the first instance) were developed as technology enabled people to interact to a greater extent with financial matters. [09:55]
- The DIY platform (sometimes called 'Fund Supermarkets') allows investors to hold different types of investment in one consolidated account, without having to go through a provider. [12:09]
- The 'adviser facilitated' platform enables independent financial advisers and planners to manage their clients’ money in a manner similar to the DIY platforms, with the result that investments do not have to be restricted to a single provider's funds. [13:40]
- When asked about the relative merits of a provider's own integrated platform, a DIY platform or an adviser platform, Simon explains that four factors need to be taken into account: Product [17:11]; Cost [18:11]; Funds [22:36]; Advice [25:11].
- As ever, please contact us via whereyourtreasureis@freerangepodcasting.co.uk, or on Instagram via @whereyourtreasureispodcast. The next ‘Practical Financial Planning’ episode will be ‘Cash Flow Planning’. [28:07]
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