Bob and Jackie

Bob (aged 57) and Jackie (63) are both working on relatively modest incomes.  The gross annual total income is c.£30,000 and expenditure is c.£23,000.  Jackie’s health is not good and she would like to give up work.

Their home is valued at £500,000 with no debt. They also have a pension fund worth £250,000 and cash on deposit of £50,000.

They are both entitled to full state pensions at age 67.

"i4C demonstrated that they could afford the extra monthly expense of a lease, even with reduced working hours and using their cash as a buffer to top up their income. "

What were the challenges?

They asked their IFA who is an i4C user the following:

  • When can they both retire?
  • What happens if initially only Bob or only Jackie retires?
  • What is the impact of reduced working hours on their lifestyle? Is it affordable?
  • At what age would they have to consider downsizing their main home to generate liquidity?
  • Should they buy a car using cash on deposit, or should they consider a monthly lease arrangement?

How did i4C solve their challenges?

The financial planner used i4C to model several different scenarios based on various retirement options for Bob and Jackie.
It showed clearly was not financially viable for Bob to stop working immediately – however it was possible for Jackie to retire completely.

This scenario modelling also prompted many discussions between the couple and with the support of their financial planner.
This resulted in a decision for:
• Jackie to retire immediately;
• Bob to reduce his working hours to 3 days per week;
• To live off liquid assets until Jackie was 75; and
• Then downsize their home to generate c.£200,000 to live off thereafter.

The final decision was for them to consider purchasing a car and how best to fund the purchase.

i4C demonstrated that they could afford the extra monthly expense of a lease, even with reduced working hours and using their cash as a buffer to top up their income.

How did i4C solve their challenges?

This is not a typical investment advice case for the planner. But it demonstrated true and valued planning skills which generated a fee from very happy clients.

Bob has since referred 4 work colleagues to the firm for advice.

I feel like a weight has been lifted and you have really helped me see that my life is not just my business and that is sometimes easy to forget when you are doing the daily grind. You have truly lifted me out of the mire and helped me look at the big picture. THANK YOU

"By using i4C the lawyers as deputy could demonstrate they had considered all options and taken appropriate advice prior to finalising their investment decisions."

Legal Trustees As Deputy For Jonny (Aged 10)

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