Wealth management – review and restructuring

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:

  • an additional tax-free income of £42,000 p.a. being generated
  • a more sustainable income as the portfolio was not eroded by regular cash withdrawals
  • greater tax efficiencies

The client was delighted with these results as well as:

  • having a clear understanding of what the portfolio contained and what it would produce
  • the reduction to an acceptable level of risk
  • taking comfort from seeing his financial advisor working closely with his solicitor, accountant and discretionary fund manager
  • having support (i.e. expert witness report) for his complaints against his previous advisers
  • the tax savings because of the tax consulting team working in conjunction with the financial planning team

Team

Joe Hawes
Financial Planner
Joe Hawes is a Financial Planner, with over ten years experience in the financial services industry.
d: +44 (0)20 7309 3888
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Graham Foster
Director, CBW Financial Planning
d: +44 (0)20 7309 3855
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Tony Lesser
Managing Director, CBW Financial Planning
d: +44 (0)20 7309 3843
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