How have we helped clients?

A.   Life Assurance Protection

By reviewing a new clients’ existing life assurance protection, we were able to establish that the premium they were spending, could (subject to company underwriting a new proposal) be cut by 60% over the remaining term, or for the same premium they were currently spending, the amount insured could be increased by 50%, over a 5 year longer term.

Given all other situations, the clients decided to increase the cover by 50%, as they were comfortable with the regular premiums, but needed the cover over a longer period.

Moral of story – every year for most clients we check to see if life cover sum assured is current and cost effective.

B.    Pension provision, why bother?

Three years ago, an existing client was debating whether or not to review the funds that her pension was invested in, and if further contributions should be made.

Explained that since October 2002 contributions of £20,903 gross had been made (only actually paid in £16,304, after basic rate income tax relief is taken off).  Current value of funds - £32,628 (29/05/2007).  Cannot rightly say that the funds have grown by 10% per annum, but the overall fund growth is very encouraging, and regularly monitored.

Moral of story – pensions have a poor reputation as a subject, but only by regularly reviewing and making effective used of the income tax reliefs available, will a retirement income be built, that meets a clients’ aspirations in the longer term.

C.    Investment Planning – who needs it?

Just as you buy a piece of fruit, until you bite into it you do not realise the value you get from eating it, but not all fruits of the same type will provide you with the taste you are seeking, and so is true of investments funds.

All investment funds may be grouped together under various headings, UK Equity, UK Corporate Bonds, Specialist, etc – it is only by investigating what the fund manager is mandated to do, and carefully watching his performance, will you decide that the fund you have chosen meets your attitude to investment risk and assist you in achieving our longer term financial aims.

We help clients by matching their financial objectives to their attitude to investment risk and seeking funds from across the market that meets their needs.

Moral of story – A client seeking capital growth with a realistic annual return of 2% points above bank base rate (after taxes) is a realistic aim in the longer term.  We have many clients achieving this.

D.   Long Term Care provision

You may not think it will happen to you, but if you are unfortunate, you may be the 1 in 4 who will need some form of care provided by others.

A healthy client with an investment portfolio that also produced a healthy inheritance tax liability, was concerned as she lived on her own in a secluded large house.  Just after she had enjoyed a holiday walking on favoured beaches, she suffered a fall at home, which resulted in an 8-week stay in hospital.

After the release from hospital to her own home, she now has more targeted support from her family, plus, and more importantly, a daily visit from a care assistant.  This daily asset is paid for by the long-term care policy she effected only 24 months before her fall, and will continue to pay for the care being provided until a full recovery is made or the lady dies.

Moral of story – Sensible understanding of the risks of not making adequate provision, can secure the long-term value of your estate for your family’s benefit.