Why did Sharon and Mark get in touch with us?
Sharon and Mark are in their early 50s and contacted us after looking online for a local financial adviser.
They had just sold their successful business, and were hoping to take early retirement. However, with a range of pensions scattered about from multiple providers, they weren’t sure if that was possible.
How did we help?
We started by understating what Sharon and Mark wanted from their retirement.
With 20, 30, even 40 years of retirement ahead of them it was important we understood what they wanted to achieve and that they felt they had a purpose.
As our understanding grew, we set about reviewing their existing pension provision. Sharon’s pensions were from her employment over 20 years ago, and no changes had been made over the past two decades. They were invested in high-risk funds and the charges were relatively high.
Mark also knew little about his pensions. Our research again showed they were poorly invested and the charges he was paying were excessive.
In addition to the pensions, Sharon and Mark had a large lump sum from the sale of their business.
Our challenge was to create a financial plan which created sufficient income from this lump sum, and their existing pensions. This would enable Sharon and Mark to retire with enough to meet their lifestyle and be sustainable for the rest of their lives.
Using cashflow modelling software, that’s exactly what we did.
Our plan showed Sharon and Mark the steps they needed to take to retire now with an income that would be sufficient for their needs in the short, medium and longer term.
They were delighted and immediately accepted our recommendation. That meant we could go ahead and implement the financial plan which involved a consolidation of pensions and new investments using the lump sum from the sale of the business. We also ensured that all capital was invested in line with their attitude to risk and in a way which, over the long term, would deliver the level of returns required by the plan.
Finally, given the amount received from the sale of the business, there was also now a potential Inheritance Tax (IHT) liability when Sharon and Mark died. They are both relatively young and were not keen to give money away or tie it up in a complex trust arrangement. We therefore agreed the simplest of solutions and put in place a life assurance policy to pay the IHT bill when the second of them dies.
How did Sharon and Mark benefit from our advice?
Selling their business was a life changing event. However, our financial planning ensured that their hard work will secure their financial future for decades to come.
Sharon and Mark are now happily retired, with their estate protected against IHT.
They can enjoy their retirement knowing they have a plan in place, that someone is looking after their investments and keeping their plan on-track.
When we see them, both Sharon and Mark tell us the peace of mind that having a financial plan in place creates, is priceless.