About Joy & Phil
Joy and Phil owned several properties and had other investments but had little in the way of a formal pension income. Their income came from their property portfolio, bank interest and investments. Both in their fifties, they wanted to make sure that they had enough income to pay for their lifestyle into later life.
Goals for the future
Joy and Phil had three main requirements:
- Enough income: It was paramount that they would need enough income to support their lifestyle for the rest of their lives
- Tax efficiency: Joy and Phil were both concerned that Inheritance Tax would erode away at the wealth they planned to leave to their daughter
- Money for school fees: Finally, they wanted to provide financial support for their grandchildren’s education (and a big gift couldn’t be considered as their daughter’s marriage was rocky).
Reviewing investments
Using Cashflow Modelling we worked with Joy and Phil to understand what income and capital they would need to support themselves in the future. We also established that the couple were pretty cautious when it came to investments.
We identified that most of their investments were not suitable to meet their financial objectives, had not been performing well and didn’t align with their attitude to risk. Furthermore, their cash wasn’t producing enough income and they weren’t taking advantage of tax benefits such as ISAs.
Creating a tax-efficient investment portfolio
We worked with Joy and Phil to create a far more tax-efficient investment portfolio that would work for them into later life.
They would keep the buy-to-let property portfolio, which were held in a company but working with their accountant we updated the share structure to reduce Inheritance Tax Liability. This would also then provide a tax-free income directly to the grandchildren to pay for their school fees.
We then built a more diversified investment portfolio which would create enough income with the potential of modest capital growth and without unacceptable risk. This ensured that Joan and Phil retained control of their wealth and could draw money as they wished. Any remaining investments would then pass to their daughter after their death without incurring Inheritance Tax.
We remain in regular contact with Joy and Phil, continuing to keep their investments on track and their future bright.
Are you in a similar position to Joy & Phil?
Together, we’ll work out how to get the best from your savings and make sure they are working hard for you. Click to book a call now.
Book an appointmentIf you prefer you can call us on 0118 9469717 or email ion@assets.ltd.uk.