Planning for the future

Accruing wealth

Our clients, busy young professionals, wanted to ensure they were making the best possible decisions with their capital. We helped them build a plan to meet specific objectives and ensure existing and future capital was invested and structured tax efficiently to meet those objectives.

The client

James, an investment banker, and his wife Amy, an insurance specialist, are in their mid-thirties with a young child. They have combined annual income in excess of £500,000 and, in addition to their main residence and a rental property, they have accrued capital of £450,000 in various investments and pensions.

The needs

With very little time to focus on financial matters, James and Amy wanted to know they were making the best decisions with their capital to meet their short, medium, and long-term objectives. Specifically, they wanted to balance their objective of repaying debt with making use of tax efficient allowances, set out a plan to fund their child’s school fees in 10 years’ time, and ensure they were building up suitable capital to fund their retirement.

The planning

At outset, we reviewed and assumed management of their existing investment and pensions. We ensured each part of their portfolio was invested in line with their specific objectives.

After analysing their existing assets, we highlighted to James and Amy the most tax efficient way to structure their capital and make use of allowances available to them in the current tax year.

Using cashflow modelling we helped James and Amy visualise and evaluate their financial position going forwards. This allowed us to discuss and agree how much capital to allocate towards meeting future objectives whilst also making overpayments on their mortgage.

The cashflow modelling allowed us to set out a clear timeline and establish a working document that would form the basis of our initial and ongoing planning.

In addition to our annual review, we agreed to meet and discuss the plan at important points in the year such as tax year end and when receiving additional capital through bonuses.