A divorcees dilemma

• Client with a lump sum and unsure what to do next.
• Lack of financial knowledge was leading to a lack of decisions.
• Who to trust was a key factor.

Client scenario

Linda had been through a messy, difficult divorce and was feeling fragile and inadequate. Her husband had always managed their finances but now, having been awarded a lump sum payment and a share of her husband’s pension pot under the divorce settlement, Linda was faced with having to make decisions on her own. Her divorce lawyer quickly realised that Linda needed help and suggested a meeting with Anita.

How we helped

Anita and Linda had regular meetings at first where they pieced together what Linda had and explored her options and aspirations. Anita analysed Linda’s living costs and added in her income and capital to create a cashflow timeline. They then worked through a variety of 'what if' scenarios to see how her financial future would look if, for example, she were to stay in the same house or if she decided to move house when her children left home. Linda was quickly able to see how preserving the lump sum and making the pension pot work harder was crucial. From their discussions, Anita was able to establish Linda’s views on money and her hopes for the future. They explored ways of protecting her children’s inheritance should she eventually meet someone new, and Linda soon began to really understand the various concepts and how important the decisions were they were making together. Her lump sum was invested tax efficiently and the pension pot was transferred into Linda’s own name.

What it meant for Linda

Linda now feels totally in control of her life and her finances, and is more positive than she has been in years. Anita and Linda have established an excellent working relationship and Linda knows that if anything is unclear she only has to ask and Anita will explain. They revisit her cashflow model each year, and together they build in any changes, which has given Linda peace of mind and the confidence to move forward and plan ahead for her future. Through Anita, Linda has found true independence and now, when decisions have to be made, she is confident that she can make the best choices possible for herself and her children.

Business couple with no exit strategy

• Business owner who focused solely on working life.
• Had assets but unsure what they could do for him and his family.
• Life’s priorities were changing and something had to give.

Client scenario

Philip had spent the last 25 years building a successful business but, as is often the case, his personal and family life had taken a back seat as a consequence. His wife, Wendy, was becoming increasingly concerned that, if Philip didn’t slow down, his health would suffer. Philip too had begun to realise that things could not continue as they were and wanted to spend more time with Wendy and his two grandsons. A close friend recommended a meeting with Anita to discuss whether early retirement might be an option for them.

How we helped

Philip knew he had a portfolio of sorts, as he had dabbled with things ‘financial’ in the past, but it felt thrown together and unclear. They had several ISAs that had grown quite well over time, and had made regular contributions into different pensions but they had no idea of the pension's real worth or how to access them. Anita gathered all the information together, conducted a detailed review of their current arrangements and analysed their expenditure. At the next meeting Philip and Wendy were delighted to learn that Anita had identified ways of reducing their costs. More importantly, she was able to show them how they could ‘drawdown’ chunks of cash from their pension which would bridge the gap until they were in receipt of their state pensions.

What it meant for Philip and Wendy

Two of Philip’s younger employees have now bought into the business and oversee the day to day running of it. Philip is employed on a consultancy basis and is gradually reducing his hours. Both Philip and Wendy are relieved that they have finally been able to develop an exit strategy and are planning a long and happy retirement within the constraints of their new budget.

Help for a widow

• Confused about her options.
• No trusted decision makers to help.
• Ever-increasing mountains of paper.
• Panic starting to set in.

Client scenario

Margaret was given a copy of Anita’s book – A Widow’s Guide – by a friend who had been a client of Anita’s for many years. Having been widowed five years earlier, Margaret had inherited several investments and savings accounts from her late husband. Even though she had taken advice and invested with her local bank, Margaret still didn’t really understand what she had and her contact there had since moved on. The relentless stream of paperwork from these investments, HM Revenue & Customs and her pension schemes was becoming too much and she became increasingly confused and worried by it all.

How we helped

Having plucked up the courage to get in touch, we asked Margaret to let us have her mountain of paperwork. This, in itself, lifted the burden. We created a simple folder with all the important items clearly labelled and, with her permission, shredded any unnecessary papers leaving her with a more manageable system. Having reviewed her investments, we were able to reduce the amount of risk Margaret had been taking and simplify the structure of her affairs, giving her a clearer understanding of what investments she now had and, more importantly, why. We were also able to organise the completion of Margaret’s tax returns and provide most of the information required without having to trouble her.

What it meant for Margaret

Margaret now says that she can’t imagine life without us as her trusted advisors and decision partners. She feels she has taken control and now regained peace of mind. We sit down together once a year to review everything and Margaret knows that if she has any worries or concerns we are just at the end of the telephone.

Squirrelling with no plan

• Collection of investments with no focus.
• Paper mountain creating more and more confusion.
• We probably have enough but we are just not sure.
• We'd like to financially support the grandchildren.

Client scenario

Bill and Ann are our squirreling clients. They have saved all their lives for that ‘rainy’ day. They first came to us with seven different cash ISAs each, numerous pensions all with different providers and fourteen savings accounts! They had, understandably, lost track of performance completely, particularly as many institutions had changed name over time, and they were totally unaware of their tax obligations. Bill and Ann were seeking the answer to the million dollar question “How much is enough?” They wanted to help their children and grandchildren but didn’t know if they could afford to do this or the best way to go about it.

How we helped

We gathered together all their information, organised it into a more manageable system and conducted a detailed review of Bill and Ann’s existing arrangements. We consolidated and simplified their investments, pensions and savings and, in so doing, reduced their running costs and made their money work smarter for them. A cash flow timeline was created identifying exactly what they could safely afford to gift to their grandchildren, and when, without jeopardising their own financial security. Finally, Anita created trusts so that they began reducing their future IHT liability whilst still controlling their wealth, substantially reducing any liability for inheritance tax.

What it meant for Bill and Ann

Bill and Ann say they have never felt so financially secure and well organised. They are amazed that, with a little organisation once a year when they touch base with Anita, their paperwork now fits neatly into one binder which helps them make sense of everything. Being able to make gifts to their grandchildren has been a real joy and their children are grateful that their inheritance is being protected and preserved. It turned out that Bill and Ann had all the pieces of the jigsaw, they just needed a little help in putting it together, and ‘permission’ to splash the cash occasionally secure in the knowledge that they still have that 'rainy' day covered.