Clients

We have highlighted under the 'Our Services' section the main thrust of our advice areas and service, and so it is useful to identify 'typical' clients who join the firm:

In Retirement

Mr & Mrs Smith are both retired and in their early 70’s. They have a portfolio of investments established nearly 10 years ago which provide some income to supplement their pensions. The rest of the investment returns are re-invested for growth.

Caution with regards to risk to capital is important, as is minimising income tax payable on their investments.

Not only do they require ongoing monitoring and advice with regards to their investments, but also an assessment of their estate as a whole with particular regard to inheritance tax and how it could be minimised.

At Retirement

Mr & Mrs Wilson are in their early 60’s and looking to retire. They have various pensions and investments accumulated over their working lives.

Financial planning advice is required in various areas. Firstly, what are the options with regards to the pensions, how are benefits drawn and what is most suitable?

Drawing the tax free cash sum goes to further boost their investment portfolio which requires a thorough review now that they are moving into the retired part of their lives. Key questions include: do we now need an income from investments to supplement pension income, are we more cautious with regards to risk to capital and returns and are the investments as tax efficient as possible?

Depending on the extent of their capital some thought may be given towards estate planning and inheritance tax.

Pre Retirement

Mr & Mrs Thompson are in their early 50’s and aim to retire in 10 years if finances allow. They are putting money in various places as and when they can to build their retirement pot.

One key question here is ‘how much do we need to be able to retire in 10 years?’. The answer, of course, depends on their lifestyle but proper financial planning should allow this question to be answered.

Moving on from this key aspect, it is then crucial to ensure that the money put away is in the right type of investment funds and within the most appropriate wrapper (such as pension, ISA, unit trust etc) and as tax efficient as possible.

All of the above needs to balance with their attitude to investment risk, and whilst they are taking a 10 year view now it is important that risk is reviewed ongoing since the time horizon reduces each year and accordingly less risk may be appropriate (especially with pensions).

An inheritance is likely within the next 5 years and so this needs to be incorporated within the financial plan at the appropriate time.

Trustees

Mrs Jones and her daughter have been appointed as the trustees of a trust established when Mrs Jones’ husband passed away. The solicitor has advised that monies are now available for investment within the trust.

Firstly an assessment of the trust itself is required, including the type of trust, who are the beneficiaries, is the trust to generate income and is access to capital required, amongst many other aspects.

It is very important for the trustees to ensure that all actions adhere to the Trustee Investment Act 2000.

As well as normal investment considerations, tax planning is vital since trusts incur a special (high) tax rate which can eat into investment returns without correct financial planning.



It is worth noting that the above are purely examples of 'typical clients' and by no means an exhaustive list.

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Independent Investment Associates Ltd is authorised and regulated by the Financial Conduct Authority