Why did Mr & Mrs Franks get in touch?

Mr and Mrs Franks are in their early 60s and came to us for a review of their various disparate pensions and investments. They had a variety of different pensions; some resulting from employment, others which they had opened themselves.

They were keen to simplify their situation, but more importantly understand whether Mr Franks could afford to retire now and enjoy a reasonable lifestyle.

Unfortunately, they had previously had a disappointing experience with a financial adviser and consequently had avoided taking advice since. As a result, they had self-selected savings and investments. They had been careful and saved well, but there was no sense of cohesion or structure.

How did we help?

The first thing we did was to spend a few hours with Mr and Mrs Franks getting to know them and understand

  • What mattered to them
  • Their goals
  • Their views on investments and risks
  • The sorts of investment journey they would prefer

We looked through what they earned, spent, owned and owed. We also discussed their current expenditure level and what they would need to spend during the various phases of retirement, from early active to end of life care.

We then gathered detailed information on their existing financial products.

We used all the information we collected to model their current position and project it forward for the rest of their lives. Our sophisticated financial modelling software allowed us to find the optimal reorganisation of their assets to achieve their retirement income goals.

We then tested the proposed plan by simulating various events such as stock market crashes, an early need for care and the death or either Mr and Mrs Franks. This part of the planning process is vital if the plan is to stay on track despite events which may occur.

The plan we produced involved transferring a small Defined Benefit (also known as Final Salary) pension and consolidating with the other pensions. We also recommended investing a portion of cash savings into Stock & Shares ISAs, while consolidating the existing disparate investments into the same actively managed portfolio of low-cost tracker funds. Their income stream was also structured to minimise the tax paid during their lifetime and on death.

Finally, we recommended re-writing wills to remove a clause which now has a negative tax effect.

How did Mr and Mrs Franks benefit from our advice?

Mr and Mrs Franks can now see how Mr Franks can afford to retire earlier than planned with an income which is both sufficient to maintain their lifestyle and is sustainable throughout their retirement.

Furthermore, their previously complex arrangements are now greatly simplified with their assets managed in one single place, which they can monitor online, 24/7.

Our ongoing advice, and structured annual reviews, will keep the plan we created for Mr and Mrs Franks on track, while the overall cost they are paying is actually no higher than before.

Finally, Mr and Mrs Franks both take great comfort that should anything happen to either or both of them, there is someone who understands their finances, can take control and guide their beneficiaries at the most difficult of times.

We can help you too

If you are approaching retirement and worried about whether you will have enough money to live your preferred lifestyle, please get in touch.

Call us on 01664 77 88 99 and ask for Alasdair, Jim or Rob.