We were approached by Jonathan, an IT consultant in his 50’s with an income of £150,000. He had met with one of our competitors to discuss his options for retirement and how best to invest his pension fund which was approaching £1 million. Jonathan came to us as he was not impressed with the advice being offered or the £30,000 fee he’d been quoted.
Client: Jonathan, 50's, married with 2 teenage children
Occupation: IT Consultant
Annual Income: £150,000
Pension: £1 Million
Other Investments: ISA
Previous Advisor Fee:
Our Advisor Fee:
We showed Jonathan our cashflow planning system, we discussed our fee structure and we showed him how we could manage his investment. However, it was the tax management advice that we gave Jonathan that persuaded him to become a client.
He was as an additional tax rate payer but his previous adviser had not used his pension annual allowance. By utilising his carry forward from previous years, we obtained £12,500 tax relief for him and reclaimed an additional £15,000 on his self-assessment, which alone more than covered our Initial Fees.
We liaised with his accountant using Guardian and so contributed £500 towards Jonathans accountancy costs.
Our competitor was only offering investment advice. Our holistic financial planning service offers so much more, we advised on retirement, tax advice, we used cashflow planning to show possible future returns and after discussing his situation the £1 million was brought over to our portfolio in stages then invested in line with his chosen risk profile rather than the previous high-risk profile he had selected.
Jonathan now has a more predictable return on his investment, he has better tax planning going forward and is in a much better position from an investment and a cash planning perspective.