Unlocking Financial Freedom

Mr James was referred to us by another Financial Planning firm based on the outskirts of York. Mr James wanted to review his pensions as his first step in retirement planning.

He told one of our Financial Planners that he wouldn’t be able to retire for at least five years. This was distressing him because the company he worked for was restructuring, and although he might hate the new changes, he had no option but to stay where he was in order to fund his retirement.

As he discussed his situation with our Financial Planner, explaining how trapped he felt, he said downsizing was an alternative should it be absolutely necessary to secure his future and release some funds. Although they spoke about the possibility of selling the house that he’d lived in for years (replacing it with a small apartment), they both understood it was a last resort.

After the initial meeting, we carefully analysed Mr James’s pension plans, as well as using cashflow forecasting to take into account any potential future growth. Cashflow forecasting, also known as “cashflow modelling”, is a tool used to look at your current wealth along with your income and expected outgoings. It allows us to analyse what potential your wealth and income might have to support you in the future.

At the next meeting, we shared a few scenarios and clearly explained our findings; not only how the investment would be set up, but the positive effect this could have on Mr James’s life in real terms.

Our Financial Planner discovered that, if Mr James were to strategically invest his pensions, he could actually retire the next day if he wanted to and keep his current property!

If that wasn’t enough, our Financial Planner also built Mr James a personal tax plan to make certain that, when he does decide to retire, we’ll tactically draw down his pension; he may never pay income tax again!

Upon delivering this news, Mr James couldn’t thank PenLife enough for gifting him with a long-sought-after feeling of freedom, drastically reducing his worries

Now that he has the option whether to work or not, Mr James has actually fallen back in love with his job; all because he’s no longer working out of necessity, and instead out of choice, making every payday a welcome bonus.

All being well, he may be able to pass down a healthy amount to his children, without having to sacrifice the life he wants to live.

If you would like to have a chat with one of PenLife’s Financial Planners, please call us on 01904 661140. The call is held at our expense and there is absolutely no obligation to take things further. Alternatively, email enquiries@pen-life.co.uk or head to www.pen-life.co.uk/contact

Please note: The contents of this case study are for informational purposes only and do not constitute individual advice. The information contained within this is for guidance only and does not constitute advice which should be sought before taking any action or inaction. The FCA does not regulate cashflow planning or tax planning. The value of your investments can fall as well as rise and is not guaranteed.

The information in this case study was correct at the time of writing.