Julia and Mark, local business owners in their late 40s, came to us seeking a financial planner to develop a life plan and gain clarity over their financial future. They had been avoiding their finances, worried about what they might discover, but they wanted to create a secure future where they could stop working at 60 while still enjoying life now.
Meetings – In Person
They had various pension plans but didn’t understand how they worked, particularly the differences between defined contribution and defined benefit plans. Julia and Mark were unsure if they were on track to maintain their current lifestyle in retirement. Additionally, one of their businesses was paying rent to a third party, and they wanted to explore if they could use their pension to buy property as part of their plan.
We started by working together to create a financial life plan centered around their objectives and goals, clarifying their desired spending now and in the future. We examined the contributions they needed to make and the returns required to meet their goals. The plan highlighted the actions needed to stop working at 60 without running out of money.
As circumstances changed, we tweaked their plans, and more recently, we began building a strategy to purchase a dream holiday home in Spain. We set up a SIPP for each of them to purchase a commercial property, allowing the business to pay rent directly to the pension, creating a tax-efficient environment. We also undertook tax and pension planning to maximize their contributions, with Julia contributing an extra £150,000 to her pension over the past couple of years.
In their own words, working together has been transformational. Rather than worrying about the future Julia and Mark now have complete clarity, enabling them to make informed financial decisions. Julia feels empowered to grow her business, and Mark has been able to step back from his to achieve a better work-life balance and improve his health.
They continue to enjoy their desired lifestyle while balancing current enjoyment with future investments. The SIPP has allowed them to benefit from holding a commercial property, building wealth from the rent the company was already paying. They've achieved significant corporation tax savings of approximately £37,500 due to pension contributions at a 25% tax rate.
For Julia and Mark, working together has been like gaining the ability to see the future, providing peace of mind that they will be able to do what they really want.
