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If I want to look after my wealth in retirement, where do I start?
Wish list
- Capital security is important
- Don’t like the thought of losing capital
- Need money and capital for nursing home fees in the long term
- Need a plan to give security of capital, a robust income stream, ability to forecast and a review process
- Would like for me and my wife to sleep at night
Problems
- My share capital has lost 32% in three months
- 95% of my total assets are taxable. Only 5% are tax free
- 30% of my total liquid assets are exposed to bank risk
- I have an all or nothing approach to investment risk, i.e. very low investments in the bank or very high investments in shares. I don’t know what I don’t know!
- A further £63,000 capital is expected to be lost over the next 2 to 6 years in order to plug my income gap
- My average return on bank capital is just 0.2%
- The national average inflation factor is 0.1%. My personal inflation factor is 1.7%
Solutions / Outcomes
- £134,400 of unused tax free investment allowances identified
- Ongoing tax free investment strategy designed
- Investment strategy designed for short, medium and long term
- Removed the exposure to bank risks so that all investments are within the FSCS limits
- In 5 years’ time the amount of assets that are taxable = 83% and tax free = 17%
- My wife and I are now able to sleep at night!
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