A prospective client requested a second opinion regarding their personal finances. From the proceeds of a business sale, they acquired a significant investment portfolio which produced a lower income than expected. To supplement their income, they had to make withdrawals from cash reserves.
The client, a cautious investor, was furthermore concerned about the portfolio content.
Upon examination, CBW found the portfolio to be complicated, risky, confusing, tax inefficient and unlikely to generate the level of income the client required over the longer term.
The first step was to help the client understand the portfolio, in particular being incapable of delivering the desired income and the risks associated with the various assets.
CBW worked closely with the client to develop a plan to reach a more desirable position. Implementation will take several years in order to allow for the surrender of a selected number of existing policies.
Following a comprehensive cash flow planning analysis enabled CBW to demonstrate those components of the portfolio that would generate the required income over the short to medium term, whilst longer term problems associated with certain distressed assets were resolved.
The impact of restructuring the investment portfolio was:
The client was delighted with these results as well as: