For the last 15 years Dave and Lucy’s lives have been solely focussed on developing the business and more recently any spare time has been absorbed by their family. The company has always benefitted from sound business and accountancy advice. Excess cash generated was ploughed back into the business but there is now sufficient surplus for Dave and Lucy to reap the rewards of their hard work. Dave has recently been approached by an investor who wishes to take a stake in the company, presenting Dave and Lucy with the possibility of a significant cash lump sum.
Given the fast pace at which Dave and Lucy’s lives have travelled, they have accumulated a large mortgage and other personal debt. Having sought and benefitted from professional advice throughout their working lives, they searched for financial advice and found our website. Dave approached NW Brown to discuss his and Lucy’s options.
Dave and Lucy had concerns surrounding the longevity of Dave’s career with the business should the offer be accepted, and how best to optimise the proceeds from any sale. Dave’s preference is to retain the funds to invest in the next “opportunity” to take advantage of the potential for accelerated growth in an industry he is confident with. Lucy would prefer to build some long-term security into their lives.
After a fact-finding discussion with one of our wealth managers, Dave and Lucy were able to gain a clearer understanding of their financial position and the options available to them.
We were able to provide the couple with a long-term investment plan to help reduce their mortgage debt, provide long-term capital growth in a tax-efficient manner and leave sufficient funds for Dave to investigate their next business opportunity.
This involved optimising Dave and Lucy’s pension funding, ensuring that all pension contribution allowances had been utilised in full and planned for maximum allowances to be utilised in the future. We also helped consolidate a number of ISAs that they held whilst making a plan to ensure full use of their future tax-free ISA allowances.
By looking at the wider picture we were able to suggest several different courses of action to give Dave and Lucy confidence that their long-term finances would be secure. This also included setting up Junior ISAs for their children and reviewing both Dave and Lucy’s life cover.
By having their personal finances reviewed in one place, Dave and Lucy significantly reduced the time and administrative burden that these take up. With regular reporting, access to NW Brown’s online Client Portal and a scheduled annual review meeting, Dave and Lucy feel better informed and prepared for the future.
For reasons of client confidentiality some of the information in this case study has been changed.