As with many of our clients, these particular clients are bright, educated and well capable of managing their affairs. In fact, they have built up substantial assets from their income – they have very successful careers.
Along the way, they have acquired products or funds from a variety of sources, but mainly from running a profitable business.
Recently the sheer scale of assets, along with some of the ‘noise’ in the press about pensions, raised concerns of ‘Are we doing the right things’?
The comment in the first telephone call was “I built my business from scratch, but as I now approach retirement, I’m aware that if I make a mistake now, it’s too late for me to go back and make my wealth again”.
They found us when looking for an Independent, Fee based firm that could work alongside them. They did not want to simply hand over everything to an Adviser, but want to remain very hands on.
We quickly established that whilst they have indeed done very well, there are key areas that they were in danger of missing. The restriction in the Lifetime Allowance is likely to affect them, but equally, they had not used all the legitimate allowances open to them.
It also transpired that some of the products and funds accumulated along the way were, with hindsight, either not a great match to their objectives, or – in many cases – just an expensive way of buying into the asset class concerned. So – using Capital Gains Tax allowances where possible – we have restructured their portfolio to reduce cost whilst being very mindful of their attitude for, and capacity for, investment risk. Often this meant reducing costs by around 1% per annum – a significant gain!
As the initial phase comes to an end, we can focus on being the ‘safe pair of hands’, and giving sound, technical Financial Planning and guidance. The client is still very hands on with their portfolio, and the funds continue to grow as their key objective of ‘Financial Independence’ comes ever closer.