Personal Financial Planning

Our client, a hard working business consultant, could not see how he could build enough savings to retire and also provide for the education of his children. 

His concern was due to the 40% tax rate (and potential 50% in the future), his savings being taxed at higher rates and that he had begun his family later in life.

Through a clear understanding of our client’s current situation and his aims for the future we developed a plan to meet his short and medium term goals whilst putting in place a strategy for the longer term. The strategy involved the effective and efficient management of his tax liability and the implementation of an investment plan aligned to his needs in both the short term and the longer term.

The plan included:

• The structuring of a limited company so that profits were taxed at a much lower rate enabling him to save up a ‘tax paid’ pension pot inside the company. This pot was drawn upon, tax free, for many years after retirement

• Use of his maximum tax free ISA allowances each year to move income and capital gains outside the tax net

• Movement of assets to his spouse in order to utilise her allowances, greatly reducing his higher rate tax liability

• Investment in growth products in order to utilise his, and his spouse’s, CGT annual exemption

• Investments that matured at regular intervals to help to pay school and university fees

Our plan enabled our client to meet his parental responsibilities and allowed for his retirement on his terms. 

+1 Us on Google+ Like Us on Facebook Follow us on Twitter