Case profile: The dentist

Background

Dental Surgeon - age 56

Practicing for over 25 years

Married - children all left home

Occupation: Dental Practice in Windsor

Existing finance and insurance in place

Existing Pension in place

Challenges

• Client looking to refinance the practice to buy out partner
• Flexible Cash flow required
• Requirement for EFG loan together with commercial finance
• Adequate loan protection and personal protection required
• When buy out completed, only one dentist at the practice, therefore no ‘back up
• Protection needed to be affordable given level of new finance
• Client required review of pension to be sure to meet his retirement goals

What we did

• Arranged flexible residential mortgage with draw-down facility for easy cash flow
• Assisted with the commercial re-finance, co-ordinating with his bank
• Complied with the Banks requirement for appropriate and relevant loan and personal protection
• Fully reviewed existing protection policies – personal and business
• Set up Locum cover policy, which the business pays – to protect business income
• Set up commercial mortgage insurances. The bank assigned the life cover
• Personal income protection policy set up correctly
• Personal Life insurance and critical illness cover policies set up and placed in trust
• Reviewed existing pension and calculated monthly premium required to meet retirement goal
• Discussed term of pension, risk profile and appropriate asset allocation to give highest potential of return

The results

• Commercial Finance and EFG agreed and completed giving client 100% of business
• Improved cash flow derived from effective budgeting using flexible residential mortgage
• Strategy for paying down/off both residential and commercial finance
• Appropriate, competitive and relevant protection policies set up covering all contingencies
• Relevant policies placed in trust for effective tax planning purposes
• Strategy in place to invest pension funds appropriately to reach/exceed income in retirement
• Bespoke financial plan devised, together with assistance working on business plan.
• Client given confidence to build his business knowing that this finances are now sound.

NB. This is an example case history only and is not intended to represent any specific individual or their situation. Its purpose is solely to give you an idea how financial planning could work in a given set of circumstances.