Mr & Mrs C

Mr & Mrs C had just retired and having recently ‘downsized’ they had a £120,000 lump sum that they wished to invest for income and capital growth. In addition, Mr C had a £245,000 pension lump sum that he wanted to use to provide an income for himself and his wife. Our clients also had an existing savings and investment portfolio worth some £100,000. They wanted its performance reviewed and also to ensure it was tax-efficient and that the charges were competitive.

After assessing our clients ‘attitude to risk’, investment objectives and any short-term capital objectives, we agreed the following recommendations:-

We utilised their ISA allowances and re-registered their existing Investment Portfolio to our Choice Investment Portfolio Solutions (Choice IPS) WRAP Platform. The funds were re-structured into our ‘Wealth of Choice Two (Low/Medium Risk) Model Portfolio’. This portfolio had the same risk profile as their existing portfolio but had produced 18% more capital growth over the past three years. Furthermore the annual management charges were 0.80% per annum less. Even after we added in our 0.75% annual advice charge, our clients would have still been better off and will now benefit from our quarterly review of the portfolio funds and regular ‘free fund switch’ advice.

We invested £100,000 of the £120,000 house sale proceeds and kept £20,000 in short-term savings accounts ‘in case of need’. This was held in Mrs C’s sole name to utilise her remaining personal allowance. The £100,000 was invested on the Choice IPS WRAP Platform, partly in the Wealth of Choice Two (Income) and partly in Wealth of Choice Three (Growth).

We moved Mr C’s pension fund in to ‘drawdown’ to provide the additional income he required.

The case study illustrated above is based on one of our clients and its aim is to give you an idea of the type of work and planning we undertake for our clients.

Changes in legislation and tax can impact on the advice that we give to our clients. This case study is not guaranteed to work in all circumstances and is intended to be a guide.

Please remember that the value of investments can fall as well as rise.