08 February 2012
 
Retired Couple Client Case Study
 
Background
  • Mr Retired aged 68 & Mrs retired aged 65
  • Sold family business 6 years ago
  • Two mature children, three grandchildren
  • Assets:
    • Home £600K
    • Holiday Home £230K
    •  Investments £720K comprising
    • Pensions £350K + Cash £50K + Investment Bonds £80K + shares £30K + Isas £95K + Unit trusts £115K 
Challenges & Concerns
 
  • Clients didn’t understand their pension options & had no clear strategy
  • Disorganised & tax inefficient Investments
  • Didn’t know how well or badly their investments were performing
  • Concerned about Inheritance Tax whilst safeguarding their own financial future
  • Outdated Wills / no Lasting Powers of Attorney
  • Require net income of £45K pa to enjoy retirement
  • Worried about the financial risks of potential long term care fees

What We Did

  •  Agreed & implemented a tailored risk adjusted investment portfolio
  • Simplified & consolidated investmentsSecured their retirement income by incorporating investment risk free annuities
  • Co-ordinated new tax efficient wills & Lasting Powers of Attorney
  • Implemented a structured gifting strategy to resolve the Inheritance Tax liability
  • Arranged 2 x long term care fees plans
  • Devised an ongoing review programme to keep things in check
 
The Results
 
  • For the first time the clients understood their financial position = Peace Of Mind
  • Achieved the desired income stream
  • Reduced investment risk & eliminated an Inheritance Tax liability in excess of £100K
  • Peace of mind in the event that either &/or both require long term care
  • The new simplified investment strategy improved performance AND reduced risk all at the same time
 
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