Case Study - The Barrister

Background

Mr Client aged 42, Barrister, Mrs Client aged 42, wife running own company
Married with 3 children aged 21,14 & 12
Joint Income £185,000 p.a.

Challenges

• No direction with pension and no investment strategy based on risk profile Large Inheritance tax issue, and protection review required
• Monthly outgoings too high (due to school fees)
• Needed to reduce expensive overdraft and pay for expensive home improvements
• Required fixed rate mortgage product due to current Mortgage balance

What we did

• Set up Self Invested Private Pension (SIPP) – transferred existing pensions to SIPP and set up regular contributions in line with retirement goals. Structured asset allocation strategy based on assessed risk profile and realisation that age 65 not 55 will achieve goals.
• Re-mortgaged to fixed rate, and raised funds for home improvements and school fees
• Inheritance Tax (IHT) advice given – Updated wills, took out whole of life insurance policy in trust to children.
• Bond for lower rate tax payer, consolidated existing ISAs for both and set up regular contributions into Unit Trusts
• New Life Insurance policies taken out and put in trust, Critical Illness Cover for both with split trusts Income Protection for husband (higher income earner).

The Results

• IHT issue resolved and strategy in place.
• Strategy in place for retirement – flexible pension product
• More disposable income for lifestyle
• Appropriate protection in place to cover all eventualities.
• Tax efficient savings vehicles in place to complement other assets

....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.