Mr Williams is a wealthy retired businessman with a variety of assets. His main concerns are Inheritance Tax and getting a reasonable return from his pension and investments long term, and maintaining his income.
We had three meetings with Mr Williams, some involving his accountant and solicitor, before we agreed a comprehensive strategy. He re-structured his will, made some gifts, and appointed us to actively manage his monies.
We agreed the following action:
- Leave his pension untouched for as long as possible due to tax efficiency
- His risk questionnaire showed him to be medium risk and we manage his pension in our Blended portfolio.
- The majority of his investment portfolio we invested for income
- Due to the volatility of the markets we advised against investing all in one go, retaining significant amounts of cash for some time.
- We will automatically switch into ISA’s each year to maximise tax allowances
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- The balance of his investment portfolio was placed in a unit trust made up of AIM stocks. Whilst this carries more risk, AIM investments pass free of Inheritance tax on death.
- His income portfolio generates excess income which is used to fund an insurance policy for inheritance tax mitigation
- Part of his cash was placed in trust for the grandchildren. Due to the longer term nature of this investment, we agreed with the trustees that this would be aggressively managed via our Intrepid portfolio
- Mr Williams can monitor his investments and those of the trust on-line 24/7.
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This case study highlights the advantages of having an investment management and financial planning service together under one roof.
For truly professional investment management, contact us now.