Background

Male client aged 57. He was referred to us by his accountant. Director of engineering business earning approximately £60,000 (gross) per annum. Recently sold the business but was contracted to continue working for the next few years. The client wanted advice regarding the capital from the sale of his business.

Challenges

1. Pension Planning

• Had a number of pension arrangements with various providers
• He was uncertain regarding what he was likely to receive in retirement

2. Investments

• Poor investment/cash returns from existing monies

3. Confused by options

• He did not know what to do with the capital he had received from sale of business

What we did

• Simplified and consolidated existing pension arrangements
• Clarified position regarding likely pension income from all sources
• Created a bespoke investment portfolio and restructured cash based investments
• Ensured investments were diversified, tax efficient and suited to attitude to risk
• Advised on additional pension contributions, splitting them over two years for tax efficiency

The results

• Client now knows that he can retire in the next 5 to 10 years
• Improved performance and tax efficiency of investment portfolio and cash deposits
• Reduced income tax liability
• Creation of future tax free income stream
• Co-ordinated approach to retirement provision, not simply reliant on pensions
• Reduced paperwork and complexity of arrangements