Dealing with the here and now, while planning for the future

Dealing with the here and now, while planning for the future

Why did John and Becky contact us?

John and Becky are both in their late 40s and have two dependent children; a daughter aged 13 and a son who is nine.

They approached us as they were concerned that they would be left financially exposed if one of them were to die.

However, as our discussions progressed, we uncovered other issues which equally worried John and Becky.

What did we do?

We started by reviewing the existing Life Cover that John and Becky had. We soon found that with policies taken out at different times, for a variety of reasons, it was all rather disjointed.

We discussed with John and Becky what they would want to happen should one, or both of them die, and how much money would be needed. We then recommended one, single, replacement policy to meet their needs; cancelling the others.

We recommended that the new Life Cover be written into trust to ensure that, should it ever be needed, the lump sum would be paid out to the people who needed it quickly. This also helped to avoid the possibility of the money being subject to Inheritance Tax (IHT).

Having dealt with this concern, we then started to discuss their long-term financial future. It soon became apparent that neither John or Becky had given much thought to their retirement. Consequently, they were spending too much now, potentially leaving them unable to retire, as they wished to do, in the future.

We therefore reviewed their existing pensions and recommended that changes be made to improve their retirement prospects. This means John and Becky needed to strike a better balance between their current, day-to-day spending, and how much they were allocating for the future. Something they were very happy to do.

How did John and Becky benefit from receiving independent financial advice?

Firstly, our advice will put the right amount of money, in the right hands, should either of them die while they still have financially dependent children.

Their longer-term retirement plans, previously neglected, are now back on track and with further work, via our annual reviews, a retirement on their terms is achievable.

The Financial Conduct Authority does not regulate Inheritance Tax Planning or Trust Advice.