The clients had been very successful in life, and should have been comfortable in Retirement. Unfortunately, previous Advisers had seen them as ‘Sophisticated Investors’, and a series of speculative investments had resulted in compounded losses of some £1 million. We were able to help them recover some, but not all, of these losses.
So our first priority was to take a hard look at what their income requirements were. Can they sustain the lifestyle? And if not, what are the ‘Sacred Cows’ that could not be cut
The Clients answer was ‘I do not want to spend a £1 less on a bottle of wine’!
After rather more analysis and discussion, our approach was to set up a ‘Managed Retreat’. What this meant was that – with clients active input and awareness – we are slowly and carefully managing the erosion of their overall capital, whilst still allowing them to sustain their lifestyle. This meant working with the client to sell off assets, reduce costs, and increase income from other sources. In fact, this element was an especially successful part of the strategy!
Taken overall, the client is now much more relaxed about their lifestyle, and confident that there will be money left over at the end of their lives, rather than life left over at the end of the money, which was a distinct possibility at one point!