Financial Planning

Background

Mr & Mrs Client were in their late 50s when they started planning and are now in their mid 60s .They‘re married with grown up children and they retired five years ago. Originally we took them through the process of retiring and have managed their assets ever since.

• Home – £1.5m
• Properties - x3 – £700K
• Cash and other available assets – £500K
• Pension Fund – £460K

Challenges

Five years ago Mr & Mrs Client had no clear idea of expenditure requirements. Their pensions were poorly structured and spread between various life offices, mostly in with-profits schemes.

Although they had considerable wealth they needed to see how this could be used to replace earned income to provide £60,000 per annum.

There was also a large Inheritance Tax liability hanging over their assets but they recognised this was not the first priority as they needed to be able to finance their retirement. They were not overly concerned about their children’s position upon their demise.

What We Did

We created a lifetime cashflow plan confirming that, with reorganisation, they could develop an income stream more than sufficient to provide a spendable index linked income of £60,000 per annum.

We consolidated their pension and cash accounts to a WRAP platform, after purchasing an annuity with their accumulated pension fund, allowing us to re-design a new investment portfolio specifically for their circumstances.

Using a scientific investment management approach we ascertained their true risk profiles and established an investment portfolio to meet their income needs.

The Results

We gave Mr & Mrs Client the confidence to retire with peace of mind. Their new investment strategy has delivered predictable performance and reduced risk all at the same time. After five years we are now beginning to plan for inheritance tax and the purchase of a new car.

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