Case Study - The Investment Banker

Background

Mr Client aged 30
Investment Banker in City
Income £330,000 p.a. (£80,000 basic and £250,000 annual bonus).

Challenges

• Client wanted to pay off his mortgage within 5-10 years
• $250,000 in dollars in American Bank. How to invest without moving to sterling.
• Investment strategy required for cash, pension and ISAs
• Personal protection required
• Required mortgage advice to purchase unorthodox property
• How to spend/ invest bonus monies?

What we did

• Set up off shore bond to invest $250,000 into it, but invested in dollar-denominated funds therefore not requiring the monies to be changed back into sterling first.
• Remortgaged residential home for £400,000 using a flexible mortgage with draw down facility of £100,000 – deposit for BTL property
• This product also allows unlimited overpayments, with no lock in at any time.
• Critical Illness policy and PHI/Income Protection taken out
• ISA & Pension set up, together with regular payments
• Suggestions given for bonus monies – pay down mortgage, invest in Unit Trusts, ISAs, Pensions and Cash to supplement monthly income requirements

The Results

• US Dollars invested in suitable vehicle as per risk profile to get best rate of return.
• Fully flexible and appropriate mortgage, plus strategy in place to pay down.
• Regular savings strategy in place
• Relevant protection in place to cover loss of income.

....because Wealth Matters

The Financial Services Authority does not regulate Will writing, school fees planning, taxation and trust advice, and some aspects of buy to let mortgages, overseas mortgages and commercial mortgages.