Case studies
The explanations of these case studies are deliberately simple. Why?
Because often the problem is simple (even though the work underneath it is complex).
- When can I stop work, or even reduce my hours?
Problem
- Client, A, had existing assets (Pensions & savings) but no concept of whether they could produce income, and if so how much…
Process
- Firstly, Financial Partners took time to establish what A would actually like to do if they were not working, as well as all their long-term goals and objectives
- We then used a process called “cashflow modelling” (highly visual technology) to illustrate a lifetime cashflow plan that showed not only the client’s important life events and goals but also whether they had enough money to live the retirement lifestyle that they wanted
- Tax considerations were taken into account, stress-testing (preparing for different scenarios) was undertaken, scenario planning comparisons were done and recommendations were made
Payoff
- An Easy-to-understand report that clearly illustrate the client’s financial journey
- The client felt far more aware and reassured as to their current and future financial situation – whilst they weren’t able to stop work immediately, they could do so earlier than they thought
- Financial advice actions were identified and actioned, such as utilising new and different “tax wrappers”
- A clear on-going financial management plan was identified and agreed so that progress towards the clients’ goals is regularly under review
- Do I/my family have an inheritance tax problem?
Problem
- Client, B, had been reading about the increasing number of families caught by IHT (at 40%) but was confused by what they had read and been told by others….
Process
- Financial Partners took time to establish exactly what B’s current circumstances were
- Having explained how all the various exemptions worked, including in relation to main residence, we were then able to identify and discuss the current tax liability
- We were then able to discuss a range of Trust and Estate planning options before agreeing and implementing a solution that best fitted the client needs, together with updated Wills and Power of Attorney
Payoff
- The money has effectively been placed outside of the estate immediately for inheritance tax purposes whilst retaining the ability to access the income and the capital
- The client family stand to save a six-figure sum in Inheritance tax
- There is peace of mind in knowing that loved ones have been catered for and the process has made their lives of easier at a point in the future
- As a Company Director, is my “corporate financial planning” good enough?
Problem
- Client, C, has been so focused on growing the business that it was only when talking to a Director of another company that he realised he’d neglected “corporate financial planning” just as his company was coming to the end of the lease on its current premises.
He also realised that the majority of company turnover was down to him and one key member of staff. Additionally, having paid a large corporation tax bill out of retained profits, he was keen to more fully utilise profits for his own benefit.
Process
- Financial Partners focused on a plan for the next 5 to 10 years and also started to get the Director to think about his exit strategy
- We identified that there were substantial pension benefits built up from previous employment as well as surplus cash savings from within the business
- We then maximised the amount the business could pay into his pension enabling the enlarged pension fund to purchase a property for the company to trade from
- We then looked at protecting company turnover using the range of Protection solutions available and applying them to him and other key members of staff
Payoff
- The rent paid by the company into the pension in relation to the property is not subject to tax, thus enabling the Director’s Pension to grow even faster (and he is effectively “paying himself” rather than dead money to a third-party landlord)
- If any key people within the company were to get ill or died suddenly, there would be enough money to find a suitable replacement and hence cause minimal disruption to the business
Claire Back
Claire has had a successful career in IT recruitment including launching & managing the Berkshire Regional office of Hays IT, a division of one of the world's largest recruitment companies.
More recently she has held other senior operational roles and has moved into the wealth management sector
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