We add the most value when we fix expensive problems that can have a major impact on financial outcomes for our clients and their families. The following isn’t an exhaustive list – but we ran out of space!
Many people have huge amounts of money in cash deposits and eventually the purchasing power of this cash will be ravaged by inflation. The purpose of investing is to increase the purchasing power of your money. Most investors don’t achieve anywhere close to market rates of return. Massive impact on financial outcomes!
Which assets to spend first? Need to take into account asset values, performance and emotional issues (eg family property). Which of the many ways of drawing down on pensions should you use? Huge variation in outcomes depending on whether this is done well or badly.
Spend now or spend later?
How much can you afford to spend in the early years whilst still healthy? Life’s not a rehearsal but you also don’t want to spend too much and have no money in later life
How should these properties be incorporated into your financial plan? Retain the properties and take the income or realise the capital at some stage? Capital gains tax issues?
High income and pension contributions
If you’re earning over £100,000 pa, your income tax bill will be hideous. Pension contributions might be the answer. But if you have a very high income the ability to pay pension contributions is restricted. It’s complicated, but we can explain
Company share schemes and options
You may have a large amount of money in the shares of a single company from employer share schemes. There’s the inherent risk of having a large exposure to one company, taxation issues, and fear of missing out on future returns if you encash
Your own limited company
What’s the best way to extract income? Will the company have any capital value and how to formulate an exit strategy?
With property values on the rise, many people will be stung by inheritance tax, but to an extent, it is a voluntary tax that can be mitigated. You pay income tax, VAT on purchases, tax on investments and then a painful 40% sting in the tail.
Pension lifetime allowance
Additional tax charges apply for pension funds in excess of £1.073m. With reasonable contributions and investment growth, more people will achieve this than you would imagine. Spoiler alert – it’s not as bad as you would think but needs some planning
Helping your children or grandchildren
Many people inherit at a time of their lives when they don’t need the money. Gifting to children in their 30s and 40s can change their lives. However, you need to be sure that you’re not jeopardising your own lifestyle. Do any of these issues strike a chord with you? If so, please do get in touch and we can have a chat