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Investment Advisory Service Case study: How we could help clients achieve their plan for retirement
planning for retirement - investment advisory case service study

Investment Advisory Service

How we could review your investments to plan for retirement



Planning for retirement with the help of an adviser


Mr & Mrs Giles have recently retired, and they came to Bestinvest to see if we could help them consolidate their investments. They wanted to take an income from their ISAs and pensions in order to supplement their state pension and final salary pension.

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Chartered Wealth Manager
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Their financial situation

Mrs Giles is a basic rate tax payer in her 60s. Due to a final salary pension scheme now being paid out from a past employer, Mr Giles is a higher rate tax payer. Mrs Giles had a few personal pensions and a stakeholder pension scattered across different pension providers, but was finding it hard to track their values or make a clear plan for how much she could take as a total income from them all.

They had both been making use of their Stocks & Shares ISA allowances each year, and had built up an investment portfolio of ISA-wrapped funds via their local Financial Adviser over the last 15 years. Their portfolio had grown to around £600,000 in total, but many of the funds they had originally invested in had become poor performers over the years, but because the funds had been purchased through a variety of different fund management groups, they didn't really know how best to manage them and couldn't really keep track of all the paperwork or charges.

The couple also had some individual company shares in Mr Giles' name, but felt that they didn't really have the time or inclination to monitor them anymore. Mr Giles had originally invested £30,000 in these shares, and they had grown to around £50,000. Whilst he wanted to sell them, he was concerned that he might incur a Capital Gains Tax liability on the profit.

How Bestinvest could help with your retirement plan

I carried out a full Fact Finding exercise with Mr and Mrs Giles, which included a discussion about how much income they ideally wanted to take from their investments in total, and how much risk they were comfortable taking. Based on the information gather in this Fact Finding exercise, I was then able to assign an asset allocation model to both their ISA portfolio and their SIPP portfolio.

Mrs Giles felt that annuity rates were unattractive at the moment, and her preference was to consolidate her pensions into one single SIPP (Self-invested Personal Pension) so that she could then use the 'income drawdown' facility while keeping the underlying assets invested. I provided them all the paperwork needed to transfer the various schemes into the SIPP, and then the consolidated total SIPP portfolio was then reviewed against our Income-Cautious asset model.

The Stocks & Shares ISAs were all held via individual fund groups, so I provided all the paperwork to transfer their ISAs over to Bestinvest, which would not only allow me to review them all within a single portfolio, but would also serve to simplify their administration going forward. At the same time, we transferred half of the individual company shares from Mr Giles' name into Giles' name (which can be done free of tax between married couples). This then allowed them to sell all of the shares without going over their individual Capital Gains Tax allowances.

I then constructed a new investment portfolio for them against a Balanced-Cautious asset allocation model, which was to be made up of their £300,000's worth of ISAs and the £50,000 share proceeds. Since a Balanced-Cautious portfolio contains a combination of some income-generating assets and some growth-oriented assets, I explained that it would make sense to hold the most income-generating funds within their existing ISA wrappers, in order to keep the portfolio as tax efficient as possible.

How can we help you?

We will support you in every aspect of the ongoing management of your money. If you are looking for an expert to help get your finances in-line with the goals you want to achieve call us today and speak to one of our advisers to see how we can help you.

Important Information

The case study above is based on existing clients of the Bestinvest Investment Advisory Service, and represents actual events; however, the clients' names and some personal and investment details have been changed for purposes of confidentiality. The service and advice by other clients may differ depending on personal and financial circumstances.

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