Corporate director looks forward to the good life

[DRAFT — The wording of this client story is not final and has not yet been approved as a financial promotion.]

Background

Mr M had enjoyed a buoyant and prosperous career. During the last 14 years with a high-profile global tech company, he had seen his industry flourish and with this, the generous financial package his position offered. This included death-in-service financial benefits, income protection should he fall ill, group medical insurance and a well-funded company pension scheme. His commitment to the company, as well as the introduction of some ground-breaking and lucrative new systems, meant he had been generously rewarded with regular bonuses and also shares within the company.

However, whilst he had invested his bonuses in various saving schemes, the majority of his wealth was tied up in company shares. Now, well over the brow of his mid-40s, he wanted to reassess his financial status and plan an earlier exit from the corporate world, around the age of 50. This would enable him to spend more time with his wife and son and also to be free from the pressure this environment had imposed.

What concerned him most was that if he were to leave his current employer, how would he continue to fund and maintain a similar benefits package to the one he currently enjoyed? Also, how could he maximise, by investment, on the sale of his shares? The company was currently solid, but he was worried, having monitored the market, that the share price could substantially fall, leading to a significant reduction of his wealth and there not being enough time to recoup the loss.

With support from the team at Arkana, we began with a slow-drip acquaintance. There was no imminent rush, and this time allowed us to build a strong and trusting relationship, carefully examining the options for a stable, long-term plan.

Mr M’s wife was involved in all the meetings and was able to express any concerns so that there was complete peace of mind should the worst happen. Their son would be going off to university in the coming years, and it was imperative that there was protection and financial security in place for them both. She pointed out that you hear horror stories about the spouse finally retiring and looking forward to an easier life and then falling critically ill, leaving no financial security in place for their family. She did not want to be one of those families falling victim because they hadn’t made good plans.

The next step

We explored, in great depth, all Mr M’s existing policies with the company, either to ensure continuation of the protection he already had, or to make improvements, if possible. By exploring their risk profile, as well as income and growth requirements, we started making plans with the aim of effectively achieving all goals. This was much more than a ‘spring-clean’ of an existing portfolio. It was an opportunity to plan and create an affordable and workable package to help the family towards a secure future.

Our help & advice

• We produced a tailored but simple report to outline the key issues Mr and Mrs M faced and explored the solutions.
• We arranged additional life cover for them both whilst still fit and healthy. This would eventually replace the death-in-service cover when he exited corporate life.
• Investments were set up to meet his risk profile, with the flexibility to adapt due to the likely swift change in circumstance which was planned.
• They were advised to update their wills and trusts to ensure monies would be paid without undue delay and tax-efficiently, once the transition had been made.
• His pension had been well funded and advice was given on the best ways to keep it topped up, receive income and any tax-free lump sums.

The outcome

We applied our knowledge and expertise to several different scenarios, and it became apparent that his long-term aspiration could be achieved. He could leave the company after two and a half years, having planned and made provisions to do so financially.

A number of years have now passed, and Mr M feels very comfortable, having delegated the management of his financial affairs to Arkana. This peace of mind trickles down to his wife and son, especially should they ever be in a situation where they need a trusted adviser to guide them and continue to look after their affairs. Both work-freedom and financial-freedom have been achieved. The results are clear and leave Mr M delighted and feeling that a great weight has been lifted from his shoulders.

This highly valued client’s goal was all about being able to live a happier and more fulfilled life, and it was our job to ensure the process to get there was equally as smooth and trouble-free. It was our pleasure to be able to assist in such an important and ultimately successful transition.

What this does not do

This client story is general information, not personal advice. What is right for you depends on your own circumstances, and we would need to understand those before making any recommendation.

The value of investments and the income from them can go down as well as up and you may get back less than you invested. Past performance is not a guide to future performance.