An unexpected change in circumstances

Robert had worked for over 15 years for a technology firm as an IT engineer. In 2008 an overseas company purchased the firm. At the time Robert owned a number of shares in the company and he received a significant sum of money when the company was acquired.

This windfall changed Robert’s financial position completely.

We were recommended to Robert by an existing client and colleague of Robert’s and he got in touch to ask us to help him decide what to do next. This was a challenging time for investors as Lehman Brothers had just collapsed and we were experiencing a global financial crisis. Understandably Robert was nervous about making decisions at such a turbulent time.

One of our Chartered Financial Planners met with Robert and his wife Ellen and spent some time talking to them about their family, financial affairs and their plans.

Ellen was a primary school teacher and wanted to continue working in this role as she got a lot of satisfaction from it. Robert also enjoyed his work and wanted to continue working for the firm – he thought the new parent company would bring a lot of opportunities and interesting projects over the next few years.

Both of Robert and Ellen’s children had recently left home and were not financially dependent on their parents.

Our Approach

We worked with Robert and Ellen to come up with a complete picture of their financial situation, including existing pensions, protection policies and any debts that the couple had, such as mortgages. We agreed with them that they had the following financial goals:

• to ensure that they were financially secure in retirement
• to ensure that the family would be protected in the event of death
• to minimise their Inheritance Tax liability
• to ensure that they were invested in assets that would give them the best chance of maximising their wealth.

After our planners and research team had considered their situation and corresponded with various providers, we sent them a detailed report, this summarised their finances and suggested a number of actions.

We then met with Robert and Ellen again, to discuss the report in person, and agree the steps that they wanted to take. These included:

• planning tax-efficient pension contributions now and in the future
• choosing to gift a proportion of the money to one of their children to assist with a property purchase
• setting up a tax-efficient investment bond held within a loan trust arrangement to help mitigate a potential Inheritance Tax liability.

Our administration team then carried out the necessary implementation work, making sure that Robert and Ellen were kept informed of progress along the way.

Now

Robert and Ellen have a balanced attitude to risk. Their investment returns since 2008 have been strong and consistent, with latest annual review showed an average annual growth rate of 7.34% after charges across their various investments.

We continue to advise Robert and Ellen on their finances, for example we always consider their income tax position and advise them on the steps they can take to be most efficient.

Over the years they have purchased a property in France, and worked with a family lawyer that we recommended to set up wills and a family trust.

They remain in a strong financial position, with no debts and a new interest in global travel.

Names and other details that could potentially identify our clients have been changed to protect their privacy.