Do you feel ready to retire, but are cautious about saying goodbye to your regular salary? Take a look at how we helped our long-term clients, Mr & Mrs L, get the peace of mind they needed to take the plunge.
Mr & Mrs L have been with Mulberry Chartered for many years, during which time we’ve helped them manage their money carefully, protect their family and plan for a comfortable retirement. Now aged 55 and with grown-up children, Mr & Mrs L want to spend more time together, travelling the world and enjoying life. Mrs L already works part-time and Mr L is hoping to retire this year, but he wanted some reassurance from us before taking the decision to give up his substantial salary.
Over the course of our long relationship with Mr & Mrs L, we had already ensured that couple were making the most of their pension contribution allowances, including the use of Carry Forward allowances for previous years. Detailed cash-flow modelling on their financial position showed quite clearly that the couple already had the funds in place to support early retirement. This gave them the peace of mind they needed.
However, to keep their money working hard for them and minimise risk, we also invested some of their cash into a Venture Capital Trust (VCT) to recover more income tax for Mr L, guarantee regular tax-free dividends and protect future gains from Capital Gains Tax. For similar reasons, we also recommended the use of a Peer-to-Peer lender to increase the returns on cash previously being held in very low-interest accounts elsewhere.
By making full use of Mr & Mrs L’s ISA allowances, setting up new ISAs for each of their children and using an offshore bond, we have ensured that the couple have additional income set aside for their retirement, as well as a tax-efficient way of passing financial gifts and unused funds onto their children and grandchildren in the future. Investing in this way had enabled Mr and Mrs L to enjoy significant returns of around 10% per annum, during a time when other markets were lacklustre.
Our long-term relationship with this family has enabled us to help them achieve the lifestyle they want for retirement.