Case Studies

Case Study #1

Mr and Mrs T – Planning for retirement income

Our Clients, Mr & Mrs T, wanted to know how Mr T could best arrange to gradually wind-down his business and commence retirement income at the same time. Mr T had a number of different pension policies, although he was uncertain about exactly how they were invested or whether they were making suitable investment returns. Mr T had a portfolio of individual shares, which came about mostly from the large privatisations of the 1980’s and 1990’s. They both had cash ISA’s and investment ISA’s.


Mrs T had retired a couple of years ago with a secure income from her Local Authority pension scheme. We investigated and found Mr T had around £270,000 in total in the various pension funds, there was around £105,000 in the ISA’s between the couple whilst the shares were worth just over £50,000. Between them Mr & Mrs T had around £80,000 in bank deposit accounts and National Savings.

Our solution

We firstly collated all the information for the couple and showed them what they owned and explained how it was all currently invested. Then we demonstrated how it could be possible to bring all the disparate pensions, savings and investments onto a single platform, which Mr & Mrs T could follow online.


We ran through our risk assessment process and identified the appropriate levels of risk Mr & Mrs T were prepared and able to take.

Some of the investments, including the private share portfolio were able and suitable to remain exactly as they were, though where appropriate alternative investments were suggested and implemented.


We also took them through our Lifetime Cashflow Management Software system, which helped us demonstrate how much income the couple could spend each year without ‘running out of money’ in their old age. We discovered high risk/high return investments were not needed, although some risk was required as current bank deposit rates were too low for the whole portfolio to take virtually no risk at all. Other incomes, such as state pensions, were included in the planning process.


The end result was that Mr & Mrs T were able to see, understand and monitor all their finances in one place, with online access too. Investments were now within a coherent strategy. Regular income from the pensions and investment funds was arranged and the couple found our Cashflow Management Software kept them re-assured they could enjoy their retirement with a sense of security.

Case Study #2

Mr & Mrs B were both in their 60’s, retired. and enjoyed a decent pension income. Their house was worth around £650,000. Mr B had a pension fund worth around £500,000, Mrs B received a monthly pension from her old employers, and they had investments and savings between them of a further £600,000. They wanted to leave as much of their assets as possible to their three children in the future, after they died. They were concerned about Inheritance Tax but also the risk of the assets being used up to pay for long term care, should either or both of them need moving into a nursing home in their elder years. However, they didn’t want to give significant sums of money to their children at this stage as they wanted to spend their own hard-earned money freely and didn’t want to lose control of that at this stage.

We ran through their total assets, and came to an overall figure. We then identified how much Inheritance Tax liability there was. By using non-controversial Trusts for some of their investments, we were able to find a way to reduce their Inheritance Tax liability to nil, whilst allowing them access to their own assets, without breaking “Gift With Reservation” rules. Further, the Trust funds were likely to be out of the reach of the local authority should either of them need to go into a Home for long term care. The Trust funds were invested in a portfolio that matched the couples needs and risk profiles, and investment returns have been very satisfactory in the meantime. Some seven years later, those Trust funds are now outside of the Estate for Inheritance Tax purposes.


They now have a successful portfolio, in Trust, away from the local authorities and taxman in the future, and earmarked for their three children after they die, but with funds still available to Mr & Mrs B should they ever need them back.

Small can be beautiful

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