Case studies


1. The Early Retirement Release

Background

Male mid 50’s, single, Sales Executive living in major city.

Assets:
£100,000 + in various investments and cash.
£80,000 + personal pension fund.
Retained benefits from previous employers pension scheme.

Challenges

Began to lack job satisfaction and wanted to resign and retire as soon as possible rather than having to wait until age 65. Unsure whether he could afford to do so before his state pension was payable and still fund his desired lifestyle. Concerned about losing his company perks, particularly his company car.

What we did

Helped the client to clearly define exactly what his “desired lifestyle” looked like.
Established the realistic current and future cost of achieving that lifestyle.
Used cashflow forecasting to create a personal balance sheet of assets and liabilities and a current and future income and expenditure analysis.
Arranged for the client to take his pension benefits early without incurring any penalties or reductions.

Results

Client was able to see that early retirement was achievable in an acceptable timeframe
He actually retired 4 years before his scheduled retirement date.
Client found he didn’t even need a car as living in a major city he had access to reliable and cost effective public transport, making the decision to retire easier.
Client spent more time doing what he loved and enjoying his hobbies full time not just at weekends.
Client frequently commented that he was convinced that our advice helped him to live longer
.

2. The Widows Story

Background

Female late 60’s, recently widowed.

Challenges

Client had been used to a privileged lifestyle due to the level of income her husband received.
She had little idea what the lifestyle she had been living actually cost.
It was clear that her current spending pattern was unsustainable.
Her property location meant that she was isolated from her family and friends.

What we did

We created a personal balance sheet of assets and liabilities.
We provided a cashflow forecast of income and expenditure to help her see the scale of the problem.
We established an expenditure budget which the client now monitors carefully.
We advised her to move closer to her children and grandchildren to be close to the people she cared for.
We invested her assets to deliver a combination of income and growth to improve the sustainability of her future income.

Results

Clients spending is now under control and regularly monitored and reviewed.
Client is aware that she is relying on a finite amount of money to sustain her long term financial security.
The rate at which capital is being depleted has significantly reduced and is regularly reviewed and updated.
Client now has peace of mind that she will be able to maintain a reasonable lifestyle.



3. The Business Owners Life Changing Event

Background

Male, late 50’s married with children and grandchildren, Director of a small Engineering Company, suddenly diagnosed with terminal cancer.

Assets:
£700,000+ overall assets plus
£600,000 potential business assets

Challenges

Client was worried about wife’s long term financial security once he passed away.
His condition was likely to require his home being adapted as his illness progressed
Had to give up work due to his deteriorating health and desire to make the most of his remaining time.

What we did

We arranged for the life assurance policy we had previously put in place to pay out the death benefits in advance of the clients death.
This, together with the critical illness policy we had recommended, paid for the client to make the necessary adaptations to his property.
Advised the client not to crystallise his pension benefits to avoid substantial tax
Undertook an analysis of expenditure pre and post death.

Results

Client could remain in his own home as his health deteriorated.
The client was able to spend time with his grandchildren as they were able to continue to visit him in known surroundings.
Group Death in Service arrangements were in place and paid a lump sum to the clients wife when he died.
A potential tax saving in excess of £100,000 on the clients uncrystalised pension fund
.

4. The Inheritance Tax Problem

Background

Female late 60’s, single, no children, retired public sector worker.  Will drawn to leave her estate to a nephew and niece on death.

Assets:
£100,000 Investments and Cash
£150,000+ Share Portfolio
£120,000+ property (with small mortgage) 
  
Challenges

Clients estate was facing a potential £37,000 Inheritance Tax liability on her death
She was concerned about providing for long term care
Her existing assets were invested in high risk equities which was misaligned with her personal attitude to risk

What we did

Established a “gifts from normal expenditure” strategy to allow her to pass assets to her nephew and niece during her lifetime, free of any IHT
Reduced the IHT liability even further by investing money in Trust for her Beneficiaries to remove assets from her estate
Repositioned the clients Portfolio into lower risk and less volatile assets that are better aligned with her attitude to risk

Results

A saving in potential Inheritance Tax of £40,000
Clients assets passed to nephew and niece without suffering IHT