Future Planning Wealth Management has expert knowledge and systems in place to work with clients in helping to enjoy their lifestyle and maintain their standard of living when retired. This couple came to us after meeting with two other advisers and wishing for a third opinion.
Some of the work involved:
Meetings were held to accurately obtain all figures in full including details on all properties and associated mortgages, and to clearly understand goals. Once this stage had completed, then we ran the number crunching exercises, together with understanding what the clients wished to see happen with their estate when they passed away. A Risk Questionnaire was completed and an in-depth discussion regarding "capacity and tolerance for loss" was held. Different models were created to show alternative approaches and the recommended route.
Understanding the nature of all current income was important, to ensure whether all pension income was guaranteed or not, increasing or not and also what would happen in the event of one client passing away, as one client had more income than the partner. Seeing what plans were in place for repaying the buy to let mortgages, and if selling properties then how this would affect cashflow and lifestyle with reduced income, as there would be less rent then coming in.
We presented a clear picture of both what the current position looked like and future position will look like, including answering "will we run out of money". The great news was that the clients were not going to run out of money, and actually will be able to spend more . Therefore alternative figures were also produced on the below:
As a result, we showed the client how these changes meant that there would be:
Previously husband dealt with all of the finances and wife was not confident on figures. Now, there is complete knowledge so that should husband pass away first, wife has excellent understanding on what the position will look like for her and how much money there is. As a result of the above recommendations and work, clients have proceeded. They mentioned that one of the other advisers was recommending they invest all of the Cash NISAs, which would have increased their risk beyond a level they were not comfortable with and felt much happier with this strategy.
There are many varying factors to consider, different allowances and vehicles to assist with scenarios similar to the above. No two cases are the same and if you feel you are in a similar position to the above, you are welcome to send an enquiry through whereby we can discuss if we are able to add value to your situation.
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