Case Studies

Client: Affluent Executive, married no other dependents.

Objective: Efficient holding and consolidation of existing pension arrangements ensuring passage of all benefits to his wife.  Client (UK citizen) living in Switzerland is close to retirement and has substantial pensions in the UK.  His primary concern was that his wife will lose the pension benefits if he pre-deceases her.  He also did not wish to be forced to buy an annuity, rather wanted the flexibility to have access to different asset classes and to be outside the scope of UK for inheritance tax purposes.

Solution: The UK pension funds were consolidated and transferred into a suitable QROP scheme which will allow the client’s wife to enjoy all the benefits of the pension in the event of her husband’s death, receiving 100% of the benefits free from any UK Tax charges which could be as high as 82% of the fund (correct at the time of advising the client).  The pension will fall outside the scope of UK IHT.  The QROP does not require the client to buy an annuity and allows an open architecture investment strategy whilst benefits are paid to the client free of any Tax.

Client: High Net worth Entrepreneur.

Objective: An efficient managed portfolio and tax efficient passage of wealth to beneficiaries.  Client is a very successful entrepreneur with business interests in Hong Kong, Germany and the Middle East, he is not happy with the service he has received from his private bank.  Returns have not been acceptable, individual service has been negligible and reviews sporadic.  He is also worried what will happen to his assets on his death.

Solution: After an in depth fact finding exercise, an offshore company within a trust was set up to hold the assets and a letter of wishes applied to ensure the client’s estate would be distributed in a tax free manner as per the clients wishes.  A bespoke portfolio was then created to meet the client’s risk profile and generate the required return.  A regular dialogue is maintained and the consultant meets his client 4 times a year.

Client: Single Professional.

Objective: Client is an executive at a well known multi-national organisation.  His goal is to be financially independent at age 50 so that he can have a change of lifestyle.

Solution: Through an in-depth fact find meeting, a target amount required at age 50 that would provide a base income was quantified and agreed with the client.  A flexible tax efficient structure was found through which the client can invest surpluses on a monthly basis as well as any one off lump sums.  An investment strategy was designed then created to meet the client’s risk profile and generate the required return.  The consultant speaks regularly with his client and meets regularly to review the performance of the plan.  He is also updated on the client’s personal circumstances so that the consultant can ensure that the client remains on track to achieve his goal of financial independence at age 50.

Client: Affluent Corporate executive with young family.

Objective: To send his children to a leading university in the USA.  The client would like his two children to go to university in the US.  Recognising the potential expense he recognises the need to start saving for this event.

Solution: After an extensive fact-finding exercise, we researched US universities and calculated the future cost of university funding based on inflation in education costs.  We then calculated the monthly amount required to invest to achieve this goal.  With this in mind, we then found the most appropriate savings vehicle and created a portfolio to achieve these goals.

Client: Middle aged Executive with young family.

Objective: The client would like to ensure that he has sufficient funds to retire whilst at the same time fund his children’s private education and have a comfortable lifestyle.  He was also concerned that, were he to die, the future financial well being of his family was secure.  The client was also worried about his investment risk as his wealth was mainly company stock & options.

Solution: Income required at retirement age was calculated and then an analysis of existing pensions was conducted.  Present cost of living, future costs and inflation were all factored in.  We then set up a suitable savings structure with an amount significant enough to reduce his pension shortfall but carefully calculated to avoid infringement on his current lifestyle.  A portfolio bond was additionally set up to house excess capital and future bonuses ensuring long term goals would be met.  His company shares were then transferred into the portfolio bond and we started to sell these shares on the market at the optimal time reducing risk significantly.  A life insurance plan was set up to ensure that in his death his family would not be adversely affected financially.

Client: Young Executive.

Objective: Purchase first house, create wealth for future.

Solution: We structured a short term deposit account to house his deposit fund in a risk free environment.  We then arranged finance with a local bank with preferential rates and a reduced deposit requirement of 15%.  We then structured a long term saving structure in a tax free environment to maximise the returns on his income.

Client: Retired Couple with no financial dependents.

Objective: Retire to South of France and pass on wealth to their beneficiaries efficiently.

Solution: We arranged tax advice, transferred their UK pensions to a QROP, invested their capital in fixed deposits with annual liquidity and wrapped up all the assets in a trust.