FP BulletinAn update from UBS Financial PlanningDecember 2015, Issue 5

Dear readers,

Welcome to the last edition of our FP Bulletin for this year; an update brought to you by our team of Financial Planners.

Our FP Bulletins provide you with an overview of what is happening in the world of Financial Planning and will help you plan ahead accordingly.

This edition provides insight into life stage planning and understanding what wealth means to you.

We hope you enjoy it.

UBS Financial Planning

Wealth Management UK

A time to reflect An introduction to life stage planning

For UBS marketing purposes

Know your meaning of wealth01Values, needs, and aspirations

Life's stages

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Roller-coaster of emotions

How does this fit together?

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06

Life's capital: our different sources of wealth

How we can help

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01. Know yourmeaning of wealthWealth generation signifies something of meaningful worth being created. But what is that ‘something‘ and why does it mean different things to different people? For example, does it signify a responsibility to society or does it fulfil a need to further expand your businesses?

It’s key to understand your values and needs before trying to make sense of these questions, and to managing your wealth and planning for the future.

02. Values, needsand aspirationsChildren are often asked what they want to be when they grow up and are encouraged to dream big. Schools generally guide children to make sensible and practical subject choices but this can result in their dreams becoming lost in the pursuit of academic learning. Where do those big dreams fit in our adult lives? Are our needs aligned with our values? These are questions we should continue to ask ourselves throughout our lives as events and opportunities arise.

For some, this is a season to reflect – a time to assess whether the choices you've made met your goals, and to plan for the year ahead. Here, UBS's Financial Planners guide you through the maze that is life stage planning.

How do you best align your aspirations with your wealth? Who should you trust to help you with the key decisions about your future?

“A dream is the visualization of your goal and the motivation for your soul.”

Kristoffer Howes (brand strategist)

03. Roller-coaster ofemotionsThe creation, management and distribution of wealth involves responsibility and brings a host of emotions – from feelings of identity, independence and pride, to doubt and anxiety.

At whatever stage of life you're in, the interconnection of your values, beliefs and experiences is key to helping you understand these emotions.

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04. Life’s capital: our different sources ofwealthWe identify three different types of capital – human, financial and social.

Human capital and social capital do not exist independently: our social capital feeds the development of our human capital and vice versa.

Building these types of capital is compatible with the core ethos of long term planning: accumulating for long term, rather than short term gain.

Human capital Financial capital Social capital

This is the value of future earning potential derived from an accumulation of knowledge, skills and career decisions.

Human capital provides the potential to create wealth and generate future savings and retirement income.

It creates close links to societal contributions.

This is the value generated from human capital, for ex-ample, cash or investments.

Financial capital becomes available for savings as well as present and future con-sumption.

Savings are invested to gen-erate an income for funding retirement.

This represents:

– Your core values andprinciples

– Engagement in yourcommunity

– Contributions to widersociety

– Your personal legacy

Social capital is often expressed through strategic philanthropy or impact investing

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For illustrative purposes onlySource: UBS

05. Life’s stagesBusiness owners face frequent decisions in their enterprise. Making the transition out of a business is one of the two most emotive decisions to take (the other being how to make a transition within the business). The impact of such decisions on your goals, aspirations and financial plan should not be underestimated. To help you decide the strategy for managing not just your wealth, but the goals in your life, it can be helpful to ask yourself why you are taking these decisions and what they mean to you.

The chart below helps to visualise the particular journey that many successful entrepreneur business owners encounter – when to sell the business, when and how to move up the property ladder, and what the future will look like. At the same time,

it demonstrates that, whilst each of us embarks on an individual journey, many events and life stages are encountered by all of us. These stages may bring about planned and unplanned transitions or events in family and business life. Importantly, it also shows the interaction of the three different types of capital mentioned earlier. The effect of capital, life events, and the way that wealth is acquired, may be profound.

Each life stage brings its own risks. As discussed in an earlier bulletin, you should be more aware of longevity and health risk as you get older, but these issues need to be considered earlier, such as when you are approaching retirement. In retirement, for example, you can face very specific risks around the timing of income withdrawals. Legislative changes for pension savings create their own risks for pension savers and are very difficult to anticipate.

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06. How does thisfit together?As outlined, all of life's stages are interdependent. As you plot your goals – and even those planned and unplanned events such as a business sale or family illness - along each life stage, financial planners can assist in planning for those events and consider their potential impact, help you reconsider your goals and then help you structure your assets with sufficient flexibility and contingency to meet those goals.

By collaboratively building your financial plan around your aspirations and making it immediately identifiable with your core values and principles, we can help you manage your financial wealth in an engaging and harmonious way.

07. How we canhelpUBS's Financial Planning service can help you to get a deeper understanding of what is involved in long term planning and the factors you need to consider for your individual circumstances.

This bulletin is issued by UBS Wealth Management, a division of UBS AG which is authorised and regulated by the Financial Market Supervisory Authority in Switzerland. In theUnited Kingdom, UBS AG is authorised by the Prudential Regulation Authority and is subject to regulation by the Financial Conduct Authority and limited regulation by thePrudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.

UBS AG, London Branch is a member of the Financial Services Compensation Scheme. There is a limit for payments under the scheme for investments with UBS AG, London Branch. Where products or services are provided from outside the UK, some or all of the customer protections under the UK regulatory regime will not apply and you may not be covered by the Financial Services Compensation Scheme.

The value of an investment and the income from it can fall as well as rise (as a result of market and currency fluctuations) and you may not get back the original amountinvested.

The content of this bulletin is for your information purposes only and is not intended as a recommendation, an offer, or a solicitation of an offer, to buy or sell any investmentor other specific product. Although all information and opinions expressed in this document were obtained from sources believed to be reliable and in good faith, norepresentation or warranty, express or implied, is made as to its accuracy or completeness.

UBS does not give tax, legal or accounting advice and you should consult your independent advisor for specific advice before entering into or refraining from entering into any investment.

UBS provides restricted advice on retail investment products such as life contracts, pensions, regulated collective investment schemes and some structured investments.This means that UBS is not tied to one product provider or marketing group but selects products issued by a limited number of companies which we have carefully selected and assessed as suitable for our clients’ needs.

This bulletin may not be reproduced or copies circulated without prior authority of UBS. This document is not intended for distribution into the US and/or to US persons or injurisdictions where its distribution by us would be restricted.

UBS AG3 Finsbury AvenueLondonEC2M 2ANTel: +44-20-7567 5757www.ubs.com/uk

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