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Case Study – Preparing to Retire Early

By November 14, 2014February 12th, 2019No Comments

The Situation

A married couple were referred to us by an existing client. They had invested in multiple pension plans going back a number of years. There were a wide range of issues to consider, including effective tax planning and an assessment of their funds to ensure their investments were aligned to their retirement plans. Their pension plans were invested across a number of both high and low risk funds, with no clear investment strategy.

The Solution

Over a number of meetings we gathered information and gained a clear understanding of what they were looking to achieve, both with regard to their retirement plans and their wider financial objectives. We undertook a thorough review of their existing pension policies. This was an important stage in the process and it was found that one of the older policies had additional benefits that may have been lost should it be transferred to a new arrangement. We discussed the merits in keeping the policy against transferring to a more modern plan, benefiting from lower charges and wider investment opportunity.

We provided advice on pension contribution levels, taking into account their tax position and providing an opportunity to reduce the couple’s tax bill.

We discussed the amount of investment risk they were willing to take with their pension portfolio. This was a detailed discussion that took into account a wide range of factors. Following this conversation we advised on a portfolio that would meet their financial objectives balanced against their attitude to risk.

There was additional money available to be used for the children. We set up investment portfolios for both children with the intention that these would be used to fund future education costs. In addition, we ensured adequate financial protection was in place for the family.

The Results

Our clients now meet with us each year to review their plan. We review their investments and make changes to their portfolios as required, ensuring their funds remain on track to achieve their financial objectives. Working with them over the long term they now have confidence in knowing that the future life they want will become a reality.