Ed is the owner of a medium-sized business and is a high-earner that pays additional rate tax. His pension, while substantial is almost incidental and hadn’t been reviewed or properly managed for a long time. Outside of his pension, Ed also has cash deposits built up over time from business profits and well as several properties. In 3 years’, time, Ed is hoping to retire at age 60 and a big dream of his was to have a once-in-a-lifetime holiday to the sum of around £100k.
We wanted to help Ed not only organise his finances but achieve his goal of retiring in 3 years and, of course, enjoy his dream holiday.
When we reviewed Ed’s portfolio, it was clear that his older style pension was costing far more than it should have been but, also, he’d potentially missed out on thousands of pounds worth of investment growth. We also found that his taxes hadn’t been effectively managed and each year, he was paying a large Income Tax bill. Our priorities were clear – we had to reorganise and restructure his pension and create a cash flow model that was sustainable and profitable so that when the time came, Ed could retire comfortably and without financial concerns.
Additionally, Ed was a somewhat “accidental landlord” and although he had benefitted from being a property owner, it was a responsibility he wasn’t looking to take into retirement. With substantial money tied up in these properties, he wanted to be careful about liquidating these in the coming years.
The Murphy Wealth approach involved using the surplus cash that Ed had to create additional value during the years that he would still be working, taking advantage of Income Tax reliefs available through specific investments. The resulting tax free income would then become part of Ed’s retirement plan. We’ve provided Ed with a sustainable approach to his finances that alleviated his concerns about ongoing liquid assets and ensured that he’llalways have accessible finances that he can use for any purpose, at any time.
What is your big dream? What is your goal? How can we help you get there? With Ed, we helped him to achieve his dream holiday and his goal of retiring in the very near future. Through rearranging his portfolio and educating Ed on his finances, we’ve ensured that his retirement will be as comfortable and care-free as he hoped it’d be.
[Webinar] In conversation with Justin King: Your life plan and why it matters now
You may have heard us talking about Life Planning recently. We want to make sure that you get the opportunity to understand why Life Planning could be a game-changer for you to achieve your goals and be truly fulfilled. Join our webinar with CEO Adrian Murphy and Financial Planner Justin King to find out more.Read more