THE SPENDING PHASE

 

Charles and Fiona approached HC Wealth Management when they were within two years of retirement. They had built up savings during their working lifetime which were spread around a number of different pension schemes, various ISAs, some investments and some cash held in a building society account.

 

They knew the total value but had little idea of how much they could safely withdraw each year without the risk of running out of money in old age. What they were looking for was guidance on how much they could safely withdraw each year and for someone to oversee their financial affairs to ensure that any plans they made remained on track.

 

We discussed with them their desired lifestyle and created a cashflow model that looked ahead to see if their capital could fully support it. Initially the model suggested that they would run out of money in their mid eighties, a conclusion which generated further discussion and identified the fact that they anticipated spending more in their early retirement years and that as time went on they would do less travelling and therefore require less money. With this modified requirement the model showed that they could live the lifestyle that they desired.

 

The next stage was to ensure that their investments were aligned to their expectations. While in work and saving for retirement they had primarily been concerned with investment returns. However, now that they were reaching the stage in life where they had to rely on their investments for their income, they could not take the same risks. Indeed their main concerns were ensuring that their money was protected against inflation and that it was available when needed and not tied up.

 

We therefore designed a portfolio that guaranteed liquidity when needed, ensured that risks were reduced as far as possible and that the portfolio was liable for the minimum of tax. We also made arrangements to simplify the administration of their portfolio and took advantage of technological developments to reduce the overall costs of maintaining it.

 

With this basic structure established we now meet once a year to review progress against the original plan and make any necessary adjustments. We oversee the portfolio to ensure that it remains aligned to their requirements and ensure that maximum advantage is taken of opportunities to reduce the impact of tax.

 

The clients have now retired and are enjoying their life confident in the knowledge that we are fully in charge of their financial affairs.

The Accumulation Phase

Mike and Jo run a

successful

management

consultancy. Their

children are at a

secondary school in

a town...

Inheritance Tax Planning

Brian and Veronica,

both aged 65 and

retired, initially

contacted us for

Inheritance Tax

advice and to discuss

placing ...

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