Having someone to turn to when you need it can make all of the difference and can evolve over time into a full financial plan that gets you to where you want to be.
The problem
We first helped David and Susan in 2003 when Susan was referred to us from an existing client. All she required then was some understanding and guidance on her pension plan.
Some years later, in 2011, they got in touch again, requiring advice on investing the lump sum from the sale of their large house in London along with other assets. David was winding down his business prior to moving to their second home near Brighton.
David and Susan were impressed with the way in which we helped them before, but they were nervous about investing such a large sum. They wanted advice on how to achieve both growth and income whilst minimising tax. They also needed to retain access to lump sums as they were not sure how they would settle full time in Brighton, thinking they may want to move back to London. Their fears were unfounded as they have integrated well and are enjoying a very busy retirement.
The Miller Knight solution
When we first met we discussed their thoughts on moving from London, why they were moving and what they were expecting to do. Although they had stayed weekends in their Brighton home, living permanently there was untested.
David and Susan had a number of short-term objectives with some medium-to-longer term, over three to seven years. These included many leisure activities, purchase of a motor home for UK and European extended tours, holidays with family and financial assistance for family members as needed.
We established what income they may need immediately, and how this may change over the coming years through additional expenses, state pensions being paid and inflation. We also discussed in detail their family requirements, with a brief overview of their financial position and how strong their relationships were.
After collection and analysis of the hard facts of David and Susan’s financial position, we presented a report which clearly showed:
- What they had
- Where it was invested
- What risks they were taking
- What their existing assets could provide
- Recommendations and an action plan to meet their objectives and contingency concerns
The outcome
David and Susan adopted an overall financial strategy to meet their lifestyle needs, putting money aside for their short-term purchases and requirements. For income and growth we changed some of their existing investments, keeping some of them but also adding to these from their available cash to provide all the income and growth from their portfolio that they’ll need for the rest of their lives.
Miller Knight put together a cohesive strategy that meets their present and future requirements and they receive information, advice and reporting on their financial investments on a quarterly basis, together with a yearly strategic meeting to make sure they are on track to provide them with tax efficiency, capital and income for the rest of their lives.
Miller Knight helped save David and Susan a potential £50,000 in Inheritance Tax by utilising trusts around their existing pension and investments, and through careful use of their ISA and Capital Gains Tax (CGT) allowances each year. David and Susan enjoy a return of over £100,000, or 24% of their investments in the three years that Miller Knight have been helping them.
David and Susan enjoy a number of family holidays and trips overseas, spending a significant amount of their time with their children and grandchild, whilst also enjoying regular holidays in the UK and abroad on their own to recover from all that family time!