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Early retirement planning / case study One

Overview

Client
Colin 55

Situation
Annual salary £140k
Home £450k
Investments £50k
Cash £50k

Objectives
Maintain income of £80kpa at age 60

Challenges

  1. Colin is married with two children aged 15 and 18 and works as an Accountant for large company.
  2. Although Colin was enjoying his work he wanted to be able to retire at age 55 if he chose to.
  3. The investments and cash accounts were disorganised, poorly structured and held in too many accounts resulting in poor investment performance and payment of too much tax.
  4. Colin and his wife had no idea of their cost of living.
  5. Neither Colin nor his wife had a will and therefore in the event of either of their demise the estate would have been a mess to sort out.

What we did

  1. We carried out a complete review understanding what they required to live on what was spare cash. This allowed for an investment strategy that would see Colin able to retire at age 55 if he chose to do so.
  2. We consolidated and simplified the investments and cash accounts into a high performance investment portfolio that is benchmarked against a return target.
  3. We changed the way Colin and his wife owned their home and arranged for a tax efficient Will to be prepared.

The results

  1. We created a clear budget and a plan to get the financial independence by age 55.
  2. Eliminated £130,000 of Inheritance Tax liability for Colin’s children.
  3. Simplified the management and reporting on the investments and cash.
  4. The new investment strategy improved performance and reduced risk all at the same time.
  5. Created clarity for Colin and his family.
  6. We also put a structure of face-to-face review meetings into place and have regular contact by phone and email in between meetings.

As with our other case studies, this is based on real client scenarios, but with slight alterations to protect the identity and privacy of the individuals. You should not make investment decisions on the basis of the information in this case study without taking advice from a suitably qualified and authorised adviser.

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