My wife and I would like to thank James McIntyre for his help with our financial planning after we approached PM+M with concerns about our retirement funds.‘Mr and Mrs Smith’
James really took his time getting to know us and what we wanted to achieve in our retirement, and we feel this made a huge difference in getting the results we were looking for – we felt valued as individuals during the entire process.
We are now able to happily enjoy our retirement with the knowledge that our funds are sustainable, and our investments are in safe hands being managed by PM+M’s Managed Portfolio Service. Thank you so much, we couldn’t recommend your services enough.
About our client
Our clients ‘Mr and Mrs Smith’, a married couple who had recently retired, were trying to understand how they would meet their needs in retirement. They wanted a financial plan in place so they would no longer have to worry if they had funds available, and if they could afford to enjoy the nicer things in life during their retirement.
Our clients also had worries about the management of their investments and decided they would like to hand over this responsibility to an adviser to alleviate concerns and ensure ongoing due diligence and review would take place on their behalf.
How PM+M helped
James McIntyre, director in our financial planning team, firstly took time to fully understand our clients’ requirements and the lifestyle they wished to lead in retirement. James then worked with our clients to then determine what accessible cash was available and how much was required for a contingency fund, using cash flow modelling, whilst keeping in mind whether this position would be likely to change in the future. James also considered what investments were already in place, as well if there was scope to target further investments and long-term growth.
Following this exercise, our team prepared a cashflow forecast which confirmed to the clients that it was likely that their finances could be sustained comfortably through retirement, and in fact, highlighted that there could be scope to increase spending and still maintain sustainability. Our team also discussed with the clients the option to test sustainability again in the future and consider whether small gifts to grandchildren could potentially be made, as the clients expressed an interest in contributing towards higher education in the future.
In terms of investments, the cash flow exercise highlighted £40,000 which was available to invest over the long term. We recommended the use of 2020/21 stocks and shares ISAs (prior to the end of the approaching tax year end), and carried out a full risk profiling exercise, considering our clients’ investment experience, growth needs and aspirations, as well as their capacity to ride out a negative market cycle, subsequently agreeing an appropriate risk approach for their ISAs and pensions. We also recommended that the stocks and shares ISAs were held within PM+M’s Managed Portfolio Service, to ensure the investments were in line with the clients’ appropriate risk profile, allowing us to manage them within a proactive solution.
James also recommend utilising a method called ‘flexi access drawdown’, in order to ensure our clients’ retirement income was structured in a tax efficient manner. This involved the client making use of their personal allowance by taking an income from their pension. In this case, our team recommended that, as Mrs Smith was able to earn £3,000 more than Mr Smith prior to paying any income tax, that she could commence an income of £3,000 per annum from their pension, tax free.
Following the extensive financial planning undertaken, our clients can now take comfort in the knowledge that they have a sustainable plan, proactively managed investments are in place and they are utilising all available tax allowances, meaning they are now able to focus solely on enjoying their retirement.
- PEACE OF MINDOur clients were pleased to learn that their finances could be sustained throughout retirement, with comfort in the knowledge that they had a clear financial plan and proactively managed investments, giving them financial freedom
- SOLUTION FOCUSEDPM+M took time to fully understand our clients’ wants and needs, and in doing so, we were able to ensure they had financial plans in place to achieve the lifestyle and investment goals which they had for the future
- PROACTIVELY MANAGED INVESTMENTSPM+M recommended that the clients’ investments were held with our Managed Portfolio Service, alleviating the worries that they had regarding investment due diligence and review, which would now take place on their behalf by our team of experts
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