Mr. Client, 52, Medical Professional, married with 3 children, aged 9, 12 & 14
Background (at outset)
Home: €1,000.000
Various Pensions: €320,000
Cash: €100,000
Shares: €40,000
Challenges:
1.
Increasing impact of taxation on my income.
2.
Whilst happy with my current lifestyle, I am concerned about maintaining this in retirement.
3.
I wish to pay off my mortgage at the earliest affordable date.
Solution:
1.
We recommended that the client's wife be employed at the maximum salary allowable on a tax rate of 20%.
2.
By building a Financial Plan with the client we established the 'Number' required to fund his desired lifestyle.
3.
Within the Financial Plan, we budgeted for an affordable monthly overpayment.
The Results:
1.
This lessened the impact of the Income Levy and increased the family net income as a result of lower taxation.
2.
In identifying his ‘Number’, the client then realized this was very achievable with the right strategy in place. Whilst taking account of revised revenue guidelines regarding pension investment for dual earners we consolidated existing arrangements into one fee based transparent solution. This resulted in lower costs with maximum growth potential aligned with the clients risk profile.
3.
This resulted in a mortgage term reduction of 7 years for the client with the associated interest savings. This will allow the mortgage to be redeemed prior to retirement.
