Updated: Jul 13
Robin and Chris had previously taken a scatter-gun approach to financial planning. Despite consistently using their pension and ISA allowances, the large number of products they had with a number of different providers meant they felt that planning was beyond their control.
During a meeting with them, we discussed their financial priorities and agreed we would write to each of their providers to establish full details, make comparisons and consider their options. Their retirement income needs were also discussed and it was determined that they needed a combined income of £45,000 per annum gross to maintain their desired lifestyle.
At a second meeting we provided a full financial planning report that discussed their needs and objectives in detail. We also outlined the cost benefits of consolidating their fragmented holdings onto a single investment platform, accessible at any time through a single investment portal.
The report also identified that Robin and Chris were far too narrow in their investment portfolio holding, which was mainly UK Equity Income funds with little exposure to overseas markets and alternative asset classes, property or bonds. Their investment strategy was addressed during this process and completely re-written. They now benefit from a diversified approach to investment – an approach that we advocate to all our clients.
The cash flow planning section in our report highlighted a shortfall of £7,500 per annum in their retirement income needs. Savings made elsewhere in their outgoings, with this monthly income diverted into their pensions, along with taking a slightly more adventurous investment strategy means that they are more likely to meet their retirement goals. By understanding their shortfalls and taking action they now feel much more in control of the situation.
Robin and Chris have been clients for over seven years and in this time they have introduced members of their family and friends to us, who have also benefited from a more proactive approach to managing their finances. Due to the value of their investments under our management we now meet twice a year at their home to review their investment and pension assets and measure progress against their goals.
The contents of this case study is for information purposes and does not constitute individual advice.