Bob and Wendy own their own house, value £295,000 with no mortgage
Bob is in receipt of a final salary pension benefit of £18,000 per annum plus his state retirement pension
Wendy worked as a care assistant and has a small pension of £4,000 and her state pension
They have savings of £12,000 in a Building Society account
He has £30,000 tax free cash from his pension scheme
This is the first time that Bob and Wendy have had a large amount of money to invest and they are very anxious.
They say that they are cautious investors and are not very financially aware.
They would like to increase their income but have some capital for emergencies.
They would also like to give a small amount of money, say £2,000 each to their two adult children and are anxious about the tax implications of this course of action.
What We Did
- We sent Bob and Wendy an explanatory sheet to study before the meeting. This gave them an idea of the types of investment which were available and the risks attached to each one
- After discussion we set up a portfolio of cash ISAS, National Savings Products, gilts and fixed rate bonds
- We helped them to make the gifts to the children in the most tax efficient way
- We will provide an annual review service and give guidance on reinvestments
- Arranged for a will to be drawn up
- The cash is in low risk investments
- 50% of the initial investment is in tax free investments – this will be increased over the years
- Bob and Wendy feel confident about their finances because they know they will receive advice and guidance