Daniel Wood

Senior Financial Planning Director

Daniel joined 7IM as a Chartered Financial Planner in 2019 and possesses over 10 years of wealth management experience, focusing on holistic Financial Planning. Daniel strives to really understand what is important to his clients to meet their financial goals and objectives, with a particular focus on tax-efficient investing, retirement planning and estate planning.

7 Questions with Daniel

1. How did you get into wealth management?

After I finished university, I went into management consultancy, working on several projects, meeting different people across several businesses, and implemented solutions to achieve different companies’ objectives.
I really enjoyed meeting new people, analysing problems, formulating solutions, and implementing these solutions. Seeing the tangible benefits the solutions made to individuals and the companies themselves, gave me a real sense of purpose.
Then, after an encounter with malaria while working in Nigeria, I decided to reassess what I wanted to do. I was always interested in investing while in education and dabbled in single line equities. The skills I obtained while working as a management consultant and my interest in investing and financial services led me to wealth management, and I have not looked back since.

2. What’s the biggest highlight of your career in wealth management?

To have the ability to advise clients and witness firsthand the positive impacts our advice can have, is a real privilege.

One highlight was helping a family whose father had just gone into care. This was, of course, an extremely difficult time for the family – not only having to deal with the emotional upset this caused, but the worry of how the family was going to afford the cost of care and a potential inheritance tax bill in the future.

Following a full review of the family’s financial position, we implemented several strategies. These included an immediate needs annuity to cover the cost of care, offering piece of mind to the family that the cost of care would be met efficiently.
In addition, owing to the Power of Attorney, the inheritance tax planning options were limited. I advised on a solution that allowed the estate to mitigate over £400,000 in potential inheritance tax. This saving eventually provided the wider family with additional financial means to support children through university and provide funds for property deposits.

Despite the terrible situation which initiated my review, we were able to help three generations of the same family.

3. What do you find most rewarding about managing people’s wealth?

Similarly to my time spent as a management consultant, I find it very rewarding to see the tangible benefits the solutions I implement for clients. Whether it’s helping clients achieve financial freedom sooner than they thought, or providing reassurance clients will have a sustainable income in retirement, or helping mitigate tax and inheritance tax.

Having clients place their trust in me is a real honour.

4. What’s the worst non-financial investment you’ve made?

It has to be my gym membership. I was an active gym member pre-Covid, then post-Covid I continued paying for a further three years… and never went once. I would see the direct debit leaving my account and repeatedly tell myself ‘this is the month’ (to start going).

I could never find the time between work, spending time with my wife and two children and then everything else life throws at you and eventually cancelled my membership. This makes me sound incredibly unhealthy, but I was still exercising.

5. If you could pick one financial habit for everyone to have, what would it be?

It’s quite difficult to pick just one, but I would say it’s to have discipline. What I mean by this is to have the discipline to remain invested, especially during uncertain, volatile, and difficult times, and to not try and time the market. As the tried-and-tested saying goes, it’s spent time in the market, not spent timing the market, which will generate better returns.

I also mean to have savings discipline. When saving regularly, it’s always best to put money aside once you have been paid, instead of at the end of the month. This allows individuals to re-budget accordingly and stick to their savings plan.

6. How important is it for individuals to look outside the standard savings and investments when considering their financial future?

Incredibly important. When most people think investments, they think ISAs and pension. These are, of course, fantastic vehicles to help invest and save for the future, but there are also several alternative investments and vehicles which could also be utilised to enhance clients’ financial plans. These include Offshore Bonds and Venture Capital Trusts (VCTs).
As an example, these two investments offer clients enhanced saving and tax planning options which not only compliment ISAs and pensions, but also make for a more robust financial future. Having the ability to optimise one’s tax planning position via 7IM’s tried and tested Tax Optimisation Strategy, will aid in clients achieving financial freedom sooner, while also achieving other financial objectives.
It’s also worth noting that products like VCTs are higher-risk investments, and therefore it’s important to seek financial advice.

7. What specialist areas do you have experience in?

As a Senior Financial Planning Director at 7IM, I have a broad knowledge on financial planning and investment related activities. In addition, my professional qualifications afford me Chartered Financial Planner status.

Despite having extensive experience as a Financial Planner, I also have specialist qualifications which allow me to advise clients in relation to their Defined Benefit Pensions. We have many clients with these types of arrangements and therefore having the ability to discuss the suitability of retaining or transferring these types of arrangements is advantageous to our clients and further enhances the 7IM client proposition.

Within my role I also specialise in enhanced tax planning solutions and strategies. These include Inheritance Tax mitigation, income tax mitigation and management.

Tax rules are subject to change and taxation will vary depending on individual circumstances. The value of investments can go down as well as up and you could get back less than you invested.