Case Studies
Corporate Investment for a ‘one man’ Limited Company
‘Mr M’ is a one-man Limited Company. He is the business, so he cannot sell it or scale, not that he would sell the business because he loves what he does. He is very successful but wasn’t sure what the end game was. He is very busy and flies internationally most of the time, so he might want to slow down in the future. However, if he does, his income will decrease. Investing in funds helps him because as he builds his investment portfolio, the portfolio is making an increasing percentage of what he makes in a year. Over time it will catch up with his annual expenditure. He doesn’t need to draw on it at the moment, but because his investment is a liquid asset that he can access, knowing that has given him the confidence to make some key financial and life decisions along the way, and given him the confidence to make authentic decisions, without financial factors involved. As time goes on, he knows he will have the choice as to whether he continues to work, work less, or stop completely.
Retirement Plan for senior employed manager
‘Mr B’ is a high earning employed manager. Although he enjoys his job, he wanted to have the option of retiring early but he did not have any means of replacing his income. He does not want to be in a position where he has to downsize to fund his retirement. He has already paid off his mortgage and is good with his money. His focus is to invest as much as he can in his ISA and Pension. He uses both because the ISA accessible should he need it. At this stage after having done some cashflow planning, looking forward he is on track to retiring early and being able to pay himself the same income he is currently on. It is a scenario where he can focus on the job that he enjoys and have a comfortable early retirement without doing anything in addition to his work. His passive income is building in the background for when he needs it.
Corporate investment and ISA for an entrepreneur
‘Mr L’ Is a young serial entrepreneur and author. A very busy man who also values his time. He is happy where he is right now, but much of his net worth is tied up in his business ventures. He wants to have a wealth base and income which is separate to this. In the next ten years he also wants to have options. Whether to continue to be in business, sell, step back, or explore other interests. He is building a corporate investment as well as his ISA with a plan to review his situation in ten years.
My Situation
I run a small wealth management company. I love what I do, and I will never sell. For the clients that I take on, I want to help them to the end. I always want to have time for my clients and to be accessible. They will always work with me, not a member of staff. Therefore, I do not want to be working around the clock looking for new business, nor scaling and taking on advisers. My plan is simply to grow organically until I decide that it’s time to stop taking on new clients. This works because I have investments to the side of my business which is growing my wealth. I am not relying on the sale of my business, nor do I have to grow my client base so large that my quality of service reduces.