Mark & David
For many high-earning executives in the UK, retirement planning can be a complex and intimidating process.
This is especially true for individuals like Mark & David, in their early 50s, who have built a successful career and accumulated a significant amount of wealth.
In this case study, we will look at how financial planning helped them plan for retirement and achieve their goals.
The Challenge
As Mark & David approached their 50s, they began to think more seriously about retirement. They had always saved for the future, but they weren't sure if they were on track to meet their retirement goals.
They were worried about having enough money to live on, paying for private healthcare, and preserving their wealth for future generations.
David also had a significant amount of wealth tied up in his company's stock options, which he was planning to divest in order to diversify his investments and reduce his risk. However, he was concerned about the tax implications of selling these shares and wanted to find a way to do so in a tax-efficient manner.
To address these concerns, Mark & David decided to seek the help of a financial planner.
They wanted to create a comprehensive retirement plan that would allow them to live comfortably, while also protecting their assets and preserving their wealth.
The Results
After meeting with us, Mark & David learned that they were on track to meet their retirement goals. However, we also identified some areas where they could improve their financial situation.
First, we advised them on a strategy to maximise their annual allowance and minimise the effects of breaching their respective lifetime allowance for pension contributions. By recalibrating their retirement planning contributions, Mark & David were able to maximise their savings and increase their financial security.
We also recommended that David consider using carry forward to make additional pension contributions. Carry forward allows individuals to use any unused annual allowance from the previous three tax years to make additional contributions to their pension. By taking advantage of this option, David was able to boost his retirement savings even further.
In addition, we helped David develop a strategy for divesting his company stock options in a tax-efficient manner. One option we discussed was using David's capital gains tax (CGT) allowance, which allows individuals to sell a certain amount of assets without incurring a tax liability. By carefully planning his divestment strategy, David was able to reduce his risk and better preserve his wealth for the future.
Finally, we assisted Mark & David in developing a healthcare plan, which included understanding the impact of potential long-term care fees in later life.
They learned about their various options, such as relying solely on the NHS, private healthcare insurance, and long-term care insurance, and were able to make informed decisions about which options were best for their needs.
Conclusion
By working with a financial planner, Mark & David were able to create a comprehensive financial plan that gave they peace of mind and confidence in their financial future. They were able to take control of their retirement planning and achieve their goals, thanks to the power of financial planning.
By carefully planning his pension contributions, using strategies like carry forward, and divesting his company stock options in a tax-efficient manner, David was able to maximise his retirement savings and secure their financial future.
Here’s What We’ll Do:
Step 1
Our first meeting will focus on your life, not your finances.
For us, the starting point is you and your goals. What do you think the future holds? What do you want to do with the rest of your life? What is most important to you? We discuss topics other than money and strive to make our meetings enjoyable, enriching, and interesting. It's all about you, not about us.
We'll take care of your initial concerns. You may be concerned that you do not have enough money to retire. You might be concerned that you're missing something or making mistakes unintentionally. We'll reassure you and answer any questions you may have.
Step 2
Once we get to know you, we're then able to better understand your money.
We'll start by gathering information about your existing pensions, savings, and investments to get a complete picture of your financial situation. Most of us despise paperwork, so with your permission, we'll contact the companies involved to obtain the necessary information.
Then, using sophisticated financial planning software, we'll create scenarios and track investments to show you the various paths to achieving your goals. We'll then make recommendations and do the necessary work to get you back on track.
Step 3
We believe that the key to successful financial planning is a long-term, ongoing relationship.
We'll review your plan on a regular basis to ensure you're on track to meet your goals. Only one thing is certain in life: change. If your needs, preferences, or aspirations change, our ongoing relationship allows for a detailed review at least once a year to ensure your financial plan is working to achieve the best results for you.
Contact Us
If you've never worked with a financial planner before, we'll guide you through the process.
If you have previously worked with a financial planner but believe it is time for a change, we can assist you in making that transition.