Background…
Mr aged 43, married with a son aged 20, business owner with £100,000 annual income.
Our client wants to retire as early as possible on an annual income of £70,000. All of his savings were held in cash, producing very low returns and paying too much tax. Although he knew how much income he wanted at retirement, he didn’t know how he was going to achieve this. And there was no Will in place.
His net assets
| Item | Value (£) |
|---|---|
| Cash | 450,000 |
| Business Annual Net Profit | 250,000 |
| Business Value | 1,000,000 |
| Home | 280,000 |
What We Did…
We discussed his financial goals, available funds, tolerance to financial risk and desired level of income at retirement.
By using our expertise and our years of experience in helping business owners, we were able to understand his needs, use various tax benefits and minimise the impact to his cash flow. We presented him with a bespoke financial plan showing year by year how he could retire at 55 and still achieve his desired lifestyle.
We put together a high performance investment portfolio aligned to the necessary return. This is reviewed annually to ensure the right balance of risk and reward against the financial target. The plan includes strategies to extract money from his business in the most tax efficient ways.
We changed the way our client owned his home and arranged for a Tax efficient Will to be prepared.
The main benefits for our client are:
- We created a very clear detailed year by year plan which demonstrated not only how to reach his retirement goal but more importantly how much and for how long his finances would last once he stopped working, helping him to achieve the lifestyle he wanted.
- We improved the overall balance and performance of his investment portfolio. Therefore getting better annual returns and through managed risk, he has total control and peace of mind.
- By utilising various Tax strategies we reduced his annual payment to the Chancellor, and eliminated £56,000 of inheritance tax liability, ensuring he kept as much of his money as legally possible.
Background…
Mr aged 56, 24% business owner with £43,597 annual income, with facility to take an additional £100,000 a year from his business.
Our client wants to retire at age 65 on an annual income of £25,000. All of his savings were held in cash, producing very low returns and paying too much tax. Although he knew how much income he wanted at retirement, he didn’t know how he was going to achieve this.
His Net Assets
| Item | Value (£) |
|---|---|
| Cash | 400,000 |
| Business Annual Net Profit | 360,000 |
| Business Value (24%) | 265,368 |
| Pensions | 175,000 |
| Main home (50% share) | 175,000 |
What We Did…
We discussed his financial goals, available funds, tolerance to financial risk and desired level of income at retirement.What We Did…
By utilising our expertise and our years of experience in helping business owners, we were able to understand his needs, use various tax benefits and minimise the impact to his cash flow. We presented him with a bespoke financial plan showing year by year how he could retire at age 65 and achieve his desired lifestyle.
We put together a high performance pension portfolio aligned to the necessary return. This is to be reviewed annually to ensure the right balance of risk and reward against the financial target. The plan includes strategies to extract money from his business in the most tax efficient ways.
The main benefits for our client are:
- We created a very clear detailed year by year plan which demonstrated not only how to reach his retirement goal but more importantly how much and for how long his finances would last once he stopped working, helping him to achieve the lifestyle he wanted.
- We improved the overall balance and performance of his investment portfolio. Therefore getting better annual returns and through managed risk, he has total control and peace of mind. We demonstrated that he did not need to take as high a risk as he was prepared to and still achieve his retirement goal.
