Overview
Jane and Karl run a successful, second generation family business. They were looking ahead towards their own retirement (perhaps in 6-7 years’ time), are keen to ensure the business continues and have plans for younger family members to eventually take over the running of the company (please also see “Family Business – Generation Planning” Case Study.
Their main concern
They already had a Small Self-Administered Pension Scheme (SSAS) in place, that had been built up in an ad-hoc fashion and they felt they would benefit from a more structured investment approach that ensured a level of risk each member was comfortable with and that met their own investment timescales and objectives. They felt there was too much cash in the pension scheme that was not earning a decent return.
Our main advice
We recommended setting up ‘tranches’ of investment for each member, investing into a suitable mix of ‘growth’ and ‘defensive’ assets to match each person’s own attitude to investment risk and timescale.
What we did
- We arranged the new investments via an Investment Platform (held within the pension scheme), to simplify the administration and reduce costs for the initial investments and any changes we would recommend in the future.
- We recommended a diverse portfolio for each member, to spread the risk, using a number of ‘preferred funds’ for the asset types recommended.
- We produce twice-yearly reports and hold twice-yearly review meetings with Jane & Karl to look at the performance of the pension funds and recommend any changes we feel would benefit their portfolios.
What were the benefits
- Jane and Karl have the peace of mind of knowing that their retirement plans are benefiting from a structured approach to the investment of their funds, which are invested in line with their own objectives and timescales and within defined risk parameters.
- Our ongoing advice and reviews mean that any changes to their circumstances, objectives, attitude to investment risk or the economic outlook are considered and changes to the investments are made when appropriate.
