Investment Planning – Case Study

This case study is based on an actual client and the financial planning issues we have addressed with them. The names and circumstances of the clients have been altered to protect our client’s privacy. The aim of the case study is to show prospective clients how we can possibly help obtain their financial goals and objectives.

Andrew and Linda had over many years accumulated a portfolio of investments for capital growth purposes. The portfolio was £200,000 in size. Their objective was to obtain capital growth on the portfolio. A regular income was not required as they had sufficient income from their pensions; however, they required access to capital in the case of an emergency. Andrew and Linda had a number of concerns about the advice they had received from their previous adviser.

Their concerns were:

1. That although they had seen their adviser initially, they had not seen anybody from the firm for a number of years.
2. Their investment had performed poorly & the service the existing firm provided was mainly reactive.
3. They had concerns about the investments they held. The types of investments used were far riskier than they anticipated. This made Andrew and Linda feel uncomfortable about the level of risk they were taking.
4. No recommendations on tax planning were made, e.g. using their Isa allowances each year.
5. We identified that Andrew and Linda’s estate had an inheritance tax liability; however, the previous advisers had not addressed their concerns or provided ways of Reducing the potential tax liability.
6. Andrew found the investment statements they received difficult to interpret.
7. When comparing the costs of the advice in comparison to the service that was offered, they were disappointed that the level of service had not been better.

Since the initial meeting with the clients, we have been able to:

• Establish the level of risk the clients were happy to accept and adjust the investment portfolios accordingly. We have steadily reduced the volatility of their investments and they both now feel much happier with the investments they hold.
• Identified assets that have provided real capital growth within their portfolio.
• Make use of their annual ISA allowances to improve the tax efficiency of the financial planning strategy.
• Initiate a plan to reduce their estate’s liability to inheritance tax. This plan will continue over several years.
• Andrew and Linda are much happier with the improved level of service and the more personal contact.
• Arrange regular in person meetings to discuss the client’s current and future financial planning requirements.
• Provide a much clearer and straightforward regular report on their financial position.

As a result the clients feel much happier with their investments and have subsequently recommended us to their family and friends.