No one tries harder than Blackstone!
David and Claire were both under 50 years old with two children aged 11 and 9 years.
David was about to sell his business, of which he owned a third and which also paid Claire a regular income.
After the sale completed, they were left with £1.3 Million after tax from the business sale, they also had a very small pension pot of less than £120,000 between them.
Claire also had an ISA worth around £15,000 as well as some life cover to deal with the mortgage.
After the sale of the business they both viewed the £1.3 Million as a lovely amount of money to have, but not as a sum that meant that they
would never have to work again.
They both realised that it was possible to generate an income from the capital and that sound independent advice would mean that they could keep (and grow) the lump sum, pay Claire the income she received prior to the sale (in a tax free format) and enjoy the lifestyle they had grown accustom to. Including, jewellery purchases, luxury holidays, and executive tickets to Twickenham, to
follow the sport and team they love.
They knew that they needed professional help, so they approached their accountant. He put them in touch with the firm’s ‘friendly financial adviser’. However, they both felt that he was not listening to the concerns they had about this one-off sum of money and their desire to grow it AND live off it.
With the adviser seemingly more interested in the amount they had to invest, not what they wanted out of the investments.
He was also overly focused on the less time-critical aspects of how he could help them save Inheritance Tax liabilities on their estate when they passed it over to their children. Which in their late 40’s, and with both children under 12, was not a major or pressing concern for them.
The Blackstone approach
David and Claire say that their retirement started on two separate days. Firstly, the day the business was sold and they received the sum of £1.3Million. Secondly the day they walked away from mediocre advice and sat down with us.
As with every one of our clients, we take the time to listen – and we mean really listen! To understand their thoughts, concerns, and ambitions and to ultimately provide a financial plan they totally understand and feel completely confident with.
David and Claire also told us that it was our independent and considered advice, combined with exceptional service levels and quick and accurate responses to all communications (typically within the hour), that convinced them to make decision to move to Blackstone.
Another critical factor was that they were new to investing and needed their hands held and wanted to be kept completely up-to-date. They certainly didn’t want to be treated as just another client who helps make up the adviser’s monthly or yearly target and new that there was no chance of that happening with us.
As this was their first major investment, we drip-fed their allocated investment capital into the markets. Protected them from market volatility, whilst delivering on their objective of growing the capital lump sum.
The first thing we talked about was the fact that they may never get another lump sum like this again.
We demonstrated exactly what this capital could actually do for them at their relatively young age. Explaining that it was critical that their capital kept up with them. As such it needed to grow beyond the initial sum through sensible investments.
We also came up with a solution that minimised the tax payable on the proceeds of the business sale. We factored in potential routes for
growing their wealth, as well as providing a regular income source at the same as pre-sale levels.
This was especially welcome as Claire had gone back to University to do a Masters and was no longer earning.
Accompanying this, a concise and relevant cash flow, with clear projections of how their capital could work for them was also put forward that would be sustainable over their lifetimes and beyond.
As all this was created using real figures not hypothetical guess-work, it was clear, easy to follow and demonstrated how their money could and should last them beyond 100 years of age if need be.
Where we could, we utilised their pension allowances especially for David, as he was still earning via his new consultancy business.
We also showed them how, using the available allowances and taking advantage of product features, they could limit the amount of Income, Capital Gains Tax and even ultimately Inheritance Tax that is paid.
As this was their first substantial investment they really welcomed the idea of drip-feeding their funds into the markets, as they look to build confidence and ease themselves into the strategy.
They tell us we really converted them
David’s background is in Training; and as he said we’ve trained him in finances. Something he didn’t feel was on offer with other financial advisers.
David and Claire have now seen how far £1.3 Million can go, when you plan properly with a tax-efficient growth strategy and considered and independent professional financial advice.
Our strategy included them having access to both funds and advice when and where new business ventures came along. Which means that they are firmly in control of their wealth and can select exactly how they receive income and how they grow the capital.
The greatest compliment that we have been paid, is that these two entrepreneurs consider Blackstone’s Anthony Ward as one of the most valuable business partners they have ever had, as he has delivered a secure and fabulous future for them and their family.