David approached me to help him and his wife with several different pensions and investments. They wanted to know if their various investments would be enough for them to live on for the rest of their lives.
Their situation was slightly complicated by the fact that the company pension scheme owned the commercial property that the business traded from.
David and his wife also wanted to help their two adult sons onto the property ladder. However, having tied up all of their money in the business, they wouldn’t be able to access any funds to do this until David retired at age 65.
David felt frustrated that he couldn’t help his sons and also felt trapped by the business. He didn’t want to admit that he was wrestling with this; he was actually feeling anxious, and started to have sleepless nights.
When we got talking, it also became apparent that David wanted more time to do the things that he wanted to do now, not when he was 65. In fact, he reminded himself that “the sole reason why I set up the business in the first place, was to have freedom over my time!”
How did we help David?
The first thing we did was to discuss what freedom really meant to David and his wife. They said that they wanted to travel to exotic places. David wanted to go on golfing trips with his friends. His wife wanted to spend some time on her hobbies and visiting her extended family.
We worked out how much these activities would cost in terms of money and time away from the business. By doing this, David quickly realised that he didn’t have to wait until he was 65 to achieve these goals.
In fact, if he could sell the business for £2.5M in the next two years, he could completely retire by the age of 60. I suggested that he ponder this over the coming months.
In the interim, I consolidated all of their investments and pensions into one place which saved David and his wife tens of thousands of pounds in management fees. I diversified these further and built in tax efficiencies too.
David was then approached with an offer for his business which meant that he could make his dreams happen sooner rather than later. And he could help his sons to buy their first homes!