Investment Advice Case Study - Couple with three young children cycling

Investment Advice Case Study

Sue and David are a married couple with three young children, Sue is a teacher and David is a surgeon. They approached us because they had accrued a considerable sum of money in a number of cash based savings accounts and wanted to explore the possibility of investing the capital to potentially receive better returns.

> SUE AND DAVID

In our initial free meeting we discussed Sue and David’s investment goals and investment time scales. In addition, they both completed risk questionnaires so we could ascertain their attitudes to risk and capacity for loss and ensure the portfolios we designed were consistent with their attitudes toward risk. We also worked through a “fact find” so we had a thorough understanding of their financial circumstances.

> INVESTMENT STRATEGY

We used the information gathered in the initial meeting to formulate an investment strategy which centred on the clients investing in a well-diversified multi-asset portfolio within separate investment ISA accounts and a joint general investment account. A multi-asset portfolio is a diversified collection of different types of investments such as shares, bonds and property funds from different geographical locations, for example the UK, USA, Europe and Asia.

Our strategy was to use David and Sue’s annual ISA allowances and migrate capital from their general investment account into their ISA accounts each tax year, until all of the capital is invested in their tax efficient ISA accounts.

> DETAILED REPORT

We presented our proposal to David and Sue in a detailed report. In the report we included information on the past performance of the investments we were recommending, the strengths and weakness of our proposed approach, information on the different types of tax wrappers we suggested and most importantly a detailed breakdown of all of the costs involved in implementing our proposal.

Sue and David chose to proceed with our advice and having set up their investments we now manage them on an ongoing basis. This means we watch over the performance of their investment funds and swap them when we believe it is necessary to do so. We also rebalance their portfolios in order to keep them in line with their attitudes to investment risk.

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Disclaimer: these case studies are based on real cases but the names and exact circumstances have been changed for client confidentiality. They provide examples of the services we have offered previous clients and may not be suitable for you. Please speak to one of our advisers should you want guidance in any of these areas.

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